Strategy Suggests Semi-Monthly Dividends for Popular STRC Preferred Shares

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, pending approval. According to Executive Chairman Michael Saylor, this move would not impact the annual dividend obligations or the dividend rate of STRC, which currently stands at 11.5%. The proposed changes are designed to stabilize the stock's price, mitigate cyclicality, drive liquidity, and stimulate demand. The STRC stock has garnered significant attention, with its outstanding notional value reaching $6.4 billion as of the filing. While volatility has decreased to 2.1% over the past two months, Saylor believes that semi-monthly payments could further reduce volatility. The voting period for the amendment will conclude on June 8, with the expected 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.