Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

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. This change would not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%, as noted by Executive Chairman Michael Saylor. Instead, Saylor emphasized that the proposed modifications are designed to stabilize the stock's price, mitigate cyclicality, drive liquidity, and stimulate demand. The STRC series 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, down from 13% in the initial eight months following the series' launch, Saylor and his team believe that semi-monthly payments could further reduce market fluctuations. The voting period for the amendment will conclude on June 8, with the first payment under the new plan expected on July 15. Meanwhile, MSTR shares experienced an 11.8% increase on Friday, coinciding with bitcoin's 3% rise to $77,400.