Strategy Proposes Semi-Monthly Dividends for Popular 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. According to Executive Chairman Michael Saylor, this move is designed to stabilize the stock price, minimize cyclicality, enhance liquidity, and stimulate demand, without affecting the annual dividend obligations or the current 11.5% dividend rate of the STRC stock. The STRC series has gained significant popularity, with its outstanding notional value reaching $6.4 billion. The stock's volatility has decreased to 2.1% over the past two months, compared to 13% in the initial eight months following its launch. However, Saylor believes that implementing semi-monthly dividend payments could further reduce volatility. The voting period for the proposed 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.