Strategy Proposes Semi-Monthly Dividend Payments for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy statement that, upon approval, will enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. The proposed change will not affect the annual dividend payout or rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, Saylor explained that the intention behind the proposed adjustments is to 'bring stability to the stock price, mitigate cyclicality, drive liquidity, and stimulate demand.' The highly sought-after stock has garnered significant attention, with its outstanding notional value surging to $6.4 billion as of the filing. Although volatility has decreased to 2.1% over the past two months, a significant drop from the 13% recorded 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 expected 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.