Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing 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 highlighted by Executive Chairman Michael Saylor. He explained that the intention behind the proposed modifications is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The STRC stock has gained immense popularity, with its outstanding notional value reaching $6.4 billion at the time of the filing, according to a presentation. Although volatility has decreased to 2.1% over the past two months, compared to 13% in the initial eight months following the series' launch, Saylor and his team believe that 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. Notably, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.