Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy statement that, upon approval, would enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. This change would not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. As stated by Executive Chairman Michael Saylor, the proposed modifications are designed to stabilize prices, mitigate cyclicality, drive liquidity, and stimulate demand. The STRC stock has gained immense popularity, with its outstanding notional value reaching $6.4 billion as of the filing. Notably, the stock's volatility has decreased to 2.1% over the past two months, compared to 13% in the initial eight months following its launch. However, Saylor and his team believe that semi-monthly payments could further reduce volatility. The voting on the amendment is set to conclude on June 8, with the anticipated first payment date under the new plan being July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.