Strategy (MSTR), the leading Bitcoin treasury company, has filed a proxy statement that, if approved, would allow bi-weekly dividends to be paid on its STRC “Stretch” preferred stock series.
The move would have no effect on STRC’s annual dividend obligations or the dividend rate (currently 11.5%), noted Executive Chairman Michael Saylor. Instead, he said: “[the] The proposed changes aim to stabilize prices, alleviate cyclicality, boost liquidity and increase demand.
The high-yield security has been exceptionally popular, with an outstanding notional value standing at $6.4 billion as of this afternoon’s filing, according to a presentation.
Volatility has fallen to just 2.1% over the past two months, compared to 13% over the first eight months after the series launched. But Saylor and his team say volatility could be further mitigated by biweekly payments.
Voting on the amendment will close on June 8, with July 15 being the scheduled date for the first payment under the new plan.
MSTR shares rose 11.8% on Friday alongside those of Bitcoin 3% up to $77,400.
