Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy filing that could allow for semi-monthly dividend payments on its STRC 'Stretch' series of preferred stock if approved. This change would not impact the annual dividend obligations or the current 11.5% dividend rate of STRC, as noted by Executive Chairman Michael Saylor, who stated that the proposed modifications are designed to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The preferred stock has gained significant popularity, with its outstanding notional value reaching $6.4 billion by the time of the filing, as per a presentation. 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 and his team believe that semi-monthly payments could further reduce volatility. The voting on the amendment is set to conclude on June 8, with the expected first payment date under the new plan being July 15. On Friday, MSTR shares saw an 11.8% increase, coinciding with bitcoin's 3% rise to $77,400.