Strategy Proposes Semi-Monthly Dividend Payments for Popular 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 affect the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%, as clarified by Executive Chairman Michael Saylor. The primary objective of this proposal, as stated by Saylor, is to 'stabilize price, dampen cyclicality, drive liquidity, and grow 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, a substantial drop from the 13% volatility observed in the first eight months following its launch. However, Saylor and his team believe that implementing semi-monthly payments could further reduce volatility. The voting period for this amendment will conclude on June 8, with the expected 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.