Strategy Suggests Semi-Monthly Dividends for Preferred STRC Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, will enable the distribution of semi-monthly dividends for its STRC 'Stretch' series of preferred shares. The proposed change is not expected to impact the annual dividend payout or the dividend rate of 11.5% for STRC. As stated by Executive Chairman Michael Saylor, 'The intended modifications are designed to stabilize prices, minimize cyclic fluctuations, enhance liquidity, and stimulate demand.' The preferred stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion by the time of the filing, as indicated in a presentation. Although volatility has decreased to 2.1% over the past two months, as compared to 13% in the initial eight months following the series' launch, Saylor and his team believe that adopting semi-monthly dividend payments could further mitigate volatility. The voting period for the amendment is set to conclude on June 8, with the anticipated initial payment date under the new plan being July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.