Strategy Suggests Semi-Monthly Dividends for Its 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 stock. The proposed change is not expected to affect the annual dividend payout or rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, Saylor explained that the modifications are designed to stabilize the stock's price, minimize cyclical trends, enhance liquidity, and stimulate demand. The preferred stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing, according to a presentation. While volatility has decreased to 2.1% over the past two months, down from 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 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.