Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

Strategy, a prominent bitcoin treasury firm, has submitted a proxy filing that, upon approval, would enable semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. This change would not impact the annual dividend payout or the dividend rate of STRC, which currently stands at 11.5%, according to Executive Chairman Michael Saylor. Instead, the proposed modification is designed to 'bring stability to the stock price, minimize volatility, stimulate market liquidity, and foster greater demand,' as stated by Saylor. The STRC preferred stock 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, compared to 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 period for the 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.