Strategy Suggests Semi-Monthly Dividend Payments for STRC Preferred Shares

Strategy, a prominent bitcoin treasury firm, has submitted a proxy filing that could lead to semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock, pending approval. According to Executive Chairman Michael Saylor, this change is designed to stabilize prices, minimize cyclicality, enhance liquidity, and stimulate demand, without impacting the annual dividend obligations or rate of STRC, which currently stands at 11.5%. The preferred stock has gained significant popularity, with its outstanding notional value reaching $6.4 billion. A notable reduction in volatility has been observed, with a drop to 2.1% over the past two months, compared to 13% in the initial eight months following its launch. The proposed semi-monthly payments are expected to further decrease volatility. The voting period for this amendment will conclude on June 8, with the first payment under the new plan anticipated on July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with a 3% rise in bitcoin's value to $77,400.