Strategy Proposes 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 STRC 'Stretch' series of preferred stock, pending approval. Executive Chairman Michael Saylor noted that this change would not impact the annual dividend payout or rate of STRC, currently at 11.5%. The primary objective of the proposed modifications is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand,' as stated by Saylor. The STRC series has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing. A notable decline in volatility has been observed, with a 2.1% decrease over the past two months, compared to 13% in the initial eight months following the series' launch. However, Saylor and his team believe that implementing semi-monthly payments could further mitigate volatility. The voting period for the amendment will conclude on June 8, with the anticipated 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.