«[The] proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand,» said Executive Chairman Michael Saylor.

Strategy’s Michael Saylor (Nikhilesh De)

Key Takeaways:

• Strategy has suggested changing the dividend schedule for its high-yield STRC preferred shares from monthly to twice a month.
• This adjustment will not impact the overall yield or the company’s total dividend commitment, but it aims to reduce STRC’s price swings.
• Should shareholders approve, the inaugural bi-monthly distribution is scheduled for July 15.

Strategy (MSTR), a prominent bitcoin treasury firm, has submitted a proxy statement that, upon approval, would enable semi-monthly dividend distributions for its STRC «Stretch» series of preferred stock.

Executive Chairman Michael Saylor clarified that this shift would not change STRC’s annual dividend rate (currently 11.5%) or the total payout obligation. Instead, he explained, «[the] proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand.»

The popular high-yield instrument has seen its outstanding notional value climb to $6.4 billion as of the afternoon’s filing, per a company presentation.

While volatility has already decreased to 2.1% over the last two months compared to 13% in the first eight months post-launch, Saylor and his team believe semi-monthly payouts could further reduce price fluctuations.

The vote on this amendment concludes on June 8, with July 15 targeted as the start date for the new payment schedule.

MSTR stock climbed 11.8% on Friday, mirroring bitcoin’s 3% gain to $77,400.