Strategy Suggests Semi-Monthly Dividend Payments for STRC Preferred Stock

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 shares. According to Executive Chairman Michael Saylor, this change would not affect the annual dividend payout or rate of STRC, currently at 11.5%. The primary goal, as stated by Saylor, is to 'bring stability to the price, minimize cyclicality, enhance liquidity, and stimulate demand.' The STRC series has gained significant popularity, with its outstanding notional value reaching $6.4 billion as of the filing. Notably, volatility has decreased to 2.1% over the past two months, compared to 13% in the initial eight months following the series' launch. However, Saylor believes 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.