Strategy Suggests Semi-Monthly Dividends for STRC Preferred Stock

Strategy, a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, would facilitate semi-monthly dividend payments for its STRC 'Stretch' series of preferred stock. The proposed change is not expected to impact the annual dividend payout or rate of STRC, which currently stands at 11.5%. As stated by Executive Chairman Michael Saylor, the primary goal of this adjustment is to 'stabilize price, dampen cyclicality, drive liquidity, and grow demand.' The STRC stock has gained significant popularity, with its outstanding notional value reaching $6.4 billion. Notably, volatility has decreased to 2.1% over the past two months, compared to 13% in the initial eight months following the series' launch. However, Saylor believes that implementing 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. On Friday, MSTR shares experienced an 11.8% increase, coinciding with bitcoin's 3% rise to $77,400.