MicroStrategy (MSTR), the bitcoin-heavy treasury firm led by Executive Chairman Michael Saylor, is pushing a change that could make its popular STRC “Stretch” preferred shares more attractive to income-focused investors.
In a new proxy filing, MicroStrategy proposes allowing semi-monthly (twice-monthly) dividend payments on the STRC series. The company stresses this wouldn’t change the preferred shares’ annual dividend obligation or the current 11.5% yield — it’s strictly a timing adjustment. According to Saylor, the goal is to “stabilize price, dampen cyclicality, drive liquidity, and grow demand.”
The STRC issue has become a major source of investor interest: outstanding notional value climbed to $6.4 billion as of the filing, per a company presentation. MicroStrategy also points to a sharp reduction in volatility — down to 2.1% over the past two months from about 13% during the first eight months after STRC’s launch — and says more frequent payouts could further smooth trading dynamics.
Shareholders will vote on the amendment through June 8; if approved, the first semi-monthly payment is expected on July 15. The news coincided with a rally in MicroStrategy stock, which jumped 11.8% on Friday as bitcoin climbed roughly 3% to about $77,400.
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