Strategy Suggests Semi-Monthly Dividends for its Widely Held 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 stock. This change would not impact the annual dividend payout or rate of STRC, which currently stands at 11.5%, as clarified by Executive Chairman Michael Saylor. He emphasized that 'the proposed changes are designed to stabilize prices, mitigate cyclicality, enhance liquidity, and stimulate demand.' The STRC stock has been remarkably popular, with its outstanding notional value reaching $6.4 billion as of the filing, based on a presentation. Over the past two months, volatility has decreased to 2.1%, compared to 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. On Friday, MSTR shares experienced an 11.8% increase, coinciding with bitcoin's 3% rise to $77,400.