Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, would enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred shares. The proposed change would not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, Saylor explained that the intended modifications are designed to stabilize prices, mitigate cyclicality, drive liquidity, and stimulate demand. The highly sought-after stock has experienced significant growth, 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 semi-monthly payments could further reduce volatility. The voting period for the amendment will conclude on June 8, with the expected first payment date under the new plan set for July 15. Meanwhile, MSTR shares saw an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.