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 obligations or the dividend rate of STRC, which currently stands at 11.5%, as noted 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. A notable decline in volatility has been observed, with a 2.1% fluctuation over the past two months compared to 13% in the initial eight months following the series' launch. However, Saylor and his team believe that implementing semi-monthly payments could further mitigate volatility. The voting period for this amendment will conclude on June 8, with the anticipated first payment date under the new plan set for July 15. On Friday, MSTR shares experienced an 11.8% increase, coinciding with bitcoin's 3% rise to $77,400.