Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

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. This change is not expected to impact the annual dividend payout or rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, the proposed modifications are designed to bring stability to the stock price, mitigate cyclical patterns, 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. Although volatility has decreased to 2.1% over the past two months, Saylor believes that adopting semi-monthly payments could further reduce market fluctuations. The voting period for the amendment will conclude on June 8, with the first payment under the new plan expected on July 15. Meanwhile, MSTR shares saw an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.