Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

Strategy, a prominent bitcoin treasury firm, has submitted a proxy filing that, upon approval, will enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. This development is not expected to impact the annual dividend commitments or the dividend rate of STRC, which currently stands at 11.5%. As stated by Executive Chairman Michael Saylor, 'the proposed modifications are designed to stabilize prices, mitigate cyclicality, foster liquidity, and stimulate demand.' The STRC stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing. Notably, volatility has decreased to 2.1% over the past two months, down from 13% in the initial eight months following the series' launch. However, Saylor and his team believe that implementing semi-monthly payments can further reduce volatility. 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.