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 shares. This change would not impact the annual dividend payout or rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. He stated that the proposed modifications are designed to stabilize the stock price, mitigate cyclicality, 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. Notably, 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 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 expected first payment date under the new plan set for July 15. Meanwhile, MSTR shares saw an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.