Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing that, upon approval, would enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. 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 proposed modifications are designed to stabilize prices, mitigate cyclicality, boost liquidity, and foster demand. The highly sought-after stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing, as per a presentation. Although volatility has decreased to 2.1% over the past two months, compared to 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 on the amendment is scheduled to 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.