Strategy Suggests Semi-Monthly Dividend Payments for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, 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 clarified by Executive Chairman Michael Saylor. He emphasized that the proposed modifications are designed 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 as 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 mitigate 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.