Strategy Suggests Semi-Monthly Dividends 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. The proposed 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. Instead, Saylor explained that the intention behind the proposed modifications is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The preferred stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion by the time of the filing, as indicated in a presentation. Although volatility has decreased to 2.1% over the past two months, down from 13% in the initial eight months following the series' launch, Saylor and his team believe that semi-monthly payments could further mitigate volatility. The voting period for the amendment will conclude on June 8, with the first payment under the new plan expected to occur on July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.