Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing that could enable semi-monthly dividend payments for its popular STRC 'Stretch' series of preferred stock if approved. Executive Chairman Michael Saylor noted that this move would not impact STRC's annual dividend commitments or its current 11.5% dividend rate. Instead, Saylor explained that the proposed changes are designed to stabilize prices, mitigate cyclicality, drive liquidity, and stimulate demand. The preferred stock has gained significant popularity, with its outstanding notional value reaching $6.4 billion as of the filing, according to a presentation. 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 is set to close on June 8, with the expected first payment date under the new plan scheduled for July 15. Meanwhile, MSTR shares saw an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.