Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

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 stock. According to Executive Chairman Michael Saylor, this change will not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. The proposed modifications are designed to stabilize the stock price, mitigate cyclicality, boost liquidity, and drive demand. The STRC series has gained significant popularity, with its outstanding notional value reaching $6.4 billion as of the recent filing. Although volatility has decreased to 2.1% over the past two months, down from 13% in the initial eight months following the series' launch, Saylor believes that implementing semi-monthly payments could further reduce 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. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.