Strategy Proposes Semi-Monthly Dividend Payments for its STRC Preferred Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, will enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred shares. According to Executive Chairman Michael Saylor, this move will not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. The primary objective of this proposal is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The STRC series 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 period for this 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.