Strategy is seeking to split dividends on its STRC 'Stretch' series preferred shares into two payments a month. If the change is approved, the annual dividend obligation and the current 11.5 percent dividend rate would remain unchanged. CoinDesk reported on April 17 that Strategy filed proxy materials for the move.
Michael Saylor (마이클 세일러), chairman of Strategy's board, said the change aims to stabilise prices, ease cyclicality, expand liquidity and boost demand. He said it is not a plan to increase the total dividend payout or change the terms of returns.
The preferred shares' par value based on outstanding issuance rose to $6.4 billion as of the filing submitted that day. The preferred shares' volatility was 13 percent in the first eight months after launch, but fell to 2.1 percent over the past two months. Strategy sees the twice-monthly payment method as a way to reduce volatility further.
Voting on the change closes on June 8. If approved, the first dividend payment under the new method is expected on July 15. Strategy shares rose 11.8 percent that day. Bitcoin also gained 3 percent on the day to $77,400.
Hyunwoo Choo
cookinpapa@d-today.co.kr