Strategy, a leading company in bitcoin treasury management, has submitted a proxy proposal that, if approved, would implement semi-monthly dividends for its STRC “Stretch” series of preferred stock. This initiative aims to enhance price stability, reduce volatility, and increase liquidity and demand for the stock.
Executive Chairman Michael Saylor emphasized that these changes will not affect the existing annual dividend obligations or the current dividend rate of 11.5%. He stated, “[the] proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand.” As of the latest filing, the notional value of the preferred stock has reached $6.4 billion, highlighting its popularity among investors.
Recent data indicates a significant reduction in volatility for the STRC stock, which has dropped to 2.1% over the past two months, compared to 13% during the initial eight months following its launch. Saylor and his team believe that the introduction of semi-monthly payments could further mitigate this volatility.
The voting period for the proposed amendment will conclude on June 8, with the first payment under the new schedule expected on July 15. In related market activity, MSTR shares experienced an 11.8% increase on Friday, coinciding with a 3% rise in bitcoin, which reached a price of $77,400.
Market analysts note that the recent surge in bitcoin prices, alongside the proposal for semi-monthly dividends, could positively influence investor sentiment and trading activity in the digital asset sector.
Strategy's proposal for semi-monthly dividends on its STRC preferred stock aims to enhance stability and liquidity without altering existing dividend rates. The initiative comes amid rising investor interest and decreasing volatility in the stock.