Strategy Proposes Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing that could enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock if approved. Executive Chairman Michael Saylor noted that this change would not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. Saylor explained that the proposed modifications are designed to stabilize prices, minimize cyclicality, drive liquidity, and increase demand. The STRC stock has gained significant popularity, 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, down from 13% in the initial eight months following the series' launch, Saylor and his team believe that semi-monthly payments could further reduce volatility. The voting period for the amendment will conclude on June 8, with the first payment under the new plan expected on July 15. On Friday, MSTR shares rose by 11.8%, coinciding with bitcoin's 3% increase to $77,400.