Strategy Suggests Semi-Monthly Dividends 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 stock. This change would not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, Saylor explained that the proposed modifications are designed to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The stock has been extremely popular, with its outstanding notional value reaching $6.4 billion as of the filing, according to a presentation. Over the past two months, volatility has decreased to 2.1%, compared to 13% in the first eight months following the series' launch. However, 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. On Friday, MSTR shares rose 11.8%, coinciding with bitcoin's 3% increase to $77,400.