Strategy Proposes Semi-Monthly Dividend Payments for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing that, upon approval, would facilitate semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. This move is not expected to impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. According to Executive Chairman Michael Saylor, the proposed changes are designed to stabilize the stock's price, minimize cyclicality, enhance liquidity, and stimulate demand. The STRC series has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing. Notably, the stock's volatility has decreased to 2.1% over the past two months, down from 13% in the initial eight months following its launch. However, Saylor and his team believe that implementing semi-monthly payments could further reduce volatility. The voting period for the amendment will conclude on June 8, with the anticipated first payment date under the new plan set for July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.