Strategy Announces Proposal for Semi-Monthly Dividends on STRC Preferred Stock

Strategy, a prominent bitcoin treasury company, has submitted a proxy filing that, upon approval, will enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. This change is not expected to impact the annual dividend payout or rate of STRC, currently set at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, the intention behind the proposed modifications is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand,' Saylor explained. The STRC series has gained significant popularity, with its outstanding notional value reaching $6.4 billion as of the filing. Furthermore, the stock's volatility has decreased to 2.1% over the past two months, down from 13% in the initial eight months following its launch. However, Saylor and his team believe that implementing semi-monthly payments could further reduce volatility. The voting period for the amendment will conclude on June 8, with the first payment under the new plan expected to occur on July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.