Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that could potentially introduce semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock, pending approval. According to Executive Chairman Michael Saylor, this change would not impact the annual dividend payout or the dividend rate of 11.5% for STRC. Instead, the proposed modification is designed to stabilize the stock price, mitigate cyclicality, enhance liquidity, and stimulate demand. The STRC series has garnered significant attention, 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, down from 13% in the initial eight months following the series' launch, Saylor believes that semi-monthly dividend payments could further reduce market fluctuations. 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 experienced an 11.8% increase, coinciding with bitcoin's 3% rise to $77,400.