Strategy Proposes Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, will enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. According to Executive Chairman Michael Saylor, this change will not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. The primary goal of this proposal is to stabilize the stock price, minimize cyclicality, enhance liquidity, and stimulate demand. The STRC series has gained immense popularity, with its outstanding notional value reaching $6.4 billion as of the recent filing. Although volatility has decreased to 2.1% over the past two months, Saylor believes that semi-monthly payments could further reduce volatility. The voting period for this 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.