Strategy Proposes Semi-Monthly Dividend Payments for STRC Preferred Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, would enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. This change would not impact the annual dividend payout or rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. He stated, 'The proposed changes are designed to stabilize the stock price, mitigate cyclical fluctuations, enhance liquidity, and stimulate demand.' The preferred stock has gained significant popularity, with its outstanding notional value reaching $6.4 billion as of the filing. Notably, its 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 expected first payment date under the new plan set for July 15. On Friday, MSTR shares saw an 11.8% increase, coinciding with bitcoin's 3% rise to $77,400.