Leading bitcoin treasury firm Strategy (MSTR) has filed a proxy that, if approved, would allow for biweekly dividends on its STRC “Stretch” series of preferred shares.
The move would have no effect on STRC’s annual dividend obligations or the dividend rate (currently 11.5%), Chief Executive Michael Saylor said. Instead, he said: “[the] “The proposed changes are aimed at stabilizing prices, cushioning cyclicality, boosting liquidity and increasing demand.”
High-yield stocks have been exceptionally popular, with exceptional notional value standing at $6.4 billion at the time of this afternoon’s filing, according to a filing.
Volatility has fallen to just 2.1% in the last two months, down from 13% in the first eight months after the series was launched. But Saylor and his team argue that volatility could be reduced even further with 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 along with bitcoin 3% increase to $77,400.
