Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

Strategy, a prominent bitcoin treasury firm, has submitted a proxy filing that, upon approval, would enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. According to Executive Chairman Michael Saylor, this move would not impact the annual dividend commitments or the dividend rate of STRC, which currently stands at 11.5%. Instead, Saylor emphasized that the proposed modifications are designed to stabilize prices, mitigate cyclicality, enhance liquidity, and stimulate demand. The STRC stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing. While 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. Meanwhile, MSTR shares saw an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.