Strategy Suggests Semi-Monthly Dividends for STRC Preferred Shares

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that could pave the way for semi-monthly dividend payments on its popular STRC 'Stretch' series of preferred stock, pending approval. According to Executive Chairman Michael Saylor, this move is designed to have no impact on the annual dividend payout or rate of STRC, which currently stands at 11.5%. Instead, Saylor emphasized that the proposed modifications are intended to stabilize the stock price, mitigate market cycles, enhance liquidity, and foster greater demand. The STRC stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing. Notably, volatility has decreased to 2.1% over the past two months, down from 13% in the initial eight months following the series' launch. However, Saylor and his team believe that adopting 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. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.