Strategy proposes semi-monthly dividends on its popular STRC preferred stock
“[The] proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand,” said Executive Chairman Michael Saylor.
What to know:
- Strategy proposed moving dividend payments on its high-yielding STRC preferred stock from monthly to semi-monthly.
- The move won’t alter the yield nor Strategy’s dividend obligation, but is expected to further dampen STRC’s volatility.
- If approved, the first semi-monthly payment would be July 15.
The high-yielding stock has been exceptionally popular, with outstanding notional value rising to $6.4 billion as of this afternoon’s filing, according to a presentation.
Volatility has dropped to just 2.1% over the past two months versus 13% in the first eight months after the series’ launch. But Saylor and team argue that volatility could be further dampened with semi-monthly payments.
Voting on the amendment will close on June 8, with July 15 as the expected first payment date under the new plan.
MSTR shares rose 11.8% on Friday alongside bitcoin’s 3% rise to $77,400.
