Strategy Proposes New Dividend Schedule for Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing that could introduce semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock, pending approval. According to Executive Chairman Michael Saylor, this change would not impact the annual dividend commitments or the dividend rate of STRC, which currently stands at 11.5%. The primary objective of this proposal is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The STRC series has gained significant popularity, 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, down from 13% in the initial 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 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.