MicroStrategy has asked shareholders to approve a tweak to the payout schedule on its hugely popular STRC “Stretch” preferred stock that the company says could calm trading and boost liquidity.
In a proxy filed this week, the bitcoin-heavy treasury firm proposed allowing semi-monthly dividend payments on the STRC series. Executive Chairman Michael Saylor emphasized the change would not alter the stock’s annual dividend obligations or the current 11.5% coupon—only the cadence of payments. “[The] proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand,” Saylor said in the filing.
The move targets a product that has become a major part of MicroStrategy’s balance-sheet ecosystem: outstanding notional value for STRC has climbed to $6.4 billion, according to the company’s presentation. Volatility in the Stretch series already appears to have eased—dropping to just 2.1% over the past two months versus roughly 13% during the first eight months after launch—but MicroStrategy argues more frequent distributions could further reduce price swings and encourage trading depth.
Shareholders will vote on the amendment through June 8; if approved, the first semi-monthly payout is expected on July 15.
Markets reacted favorably: MSTR shares jumped 11.8% on Friday as bitcoin itself climbed roughly 3% to about $77,400. For holders and crypto investors watching the intersection of corporate treasuries and digital-asset exposure, the proposal is a notable attempt to make a high-yield, bitcoin-linked instrument more liquid and potentially more attractive to income-focused buyers.
Read more AI-generated news on: undefined/news
