Leading bitcoin tax company Strategy (MSTR) has filed a proxy statement that, if approved, will allow for semi-monthly dividends on its STRC “Stretch” series of preferred stock.
The move would have no effect on STRC’s annual dividend obligations or dividend rate (currently 11.5%), executive chairman Michael Saylor noted. Instead, he said, “[the] proposed changes are intended to stabilize prices, dampen cyclicality, drive liquidity and increase demand.”
The high-yielding stock has been unusually popular, with an outstanding par value rising to $6.4 billion as of afternoon filing, according to a presentation.
Volatility has fallen to just 2.1% over the past two months, compared to 13% in the first eight months after the series’ launch. But Saylor and team argue that volatility can be further dampened with semi-monthly payments.
Voting on the change ends on June 8, with July 15 as the expected first payment date under the new plan.
MSTR stock rose 11.8% on Friday along with bitcoins 3% increases to $77,400.
