Strategy has proposed shifting dividend payments on its STRC preferred stock from monthly to semi-monthly to help reduce volatility and improve liquidity.
The plan, outlined in a proxy filing, would not change the 11.5% yield or total dividend obligations, but aims to stabilise trading dynamics for the high-demand instrument.
“The proposed changes are intended to stabilise price, dampen cyclicality, drive liquidity, and grow demand,”
Said Strategy Executive Chairman, Michael Saylor.
The STRC “Stretch” series has grown rapidly, with outstanding notional value reaching $6.4 billion, reflecting strong investor appetite for high-yield crypto-linked securities.
Volatility in the preferred stock has already declined to 2.1% over the past two months, compared with 13% in the eight months following its launch.
Strategy believes increasing the frequency of dividend payments could further smooth price movements and enhance market participation.
Shareholders are set to vote on the proposal by June 8, with the first semi-monthly payment expected on July 15 if approved.