Michael Saylor's Strategy Moves to Bi-Monthly Dividends for STRC
Why Michael Saylor's Strategy decided to make STRC's dividend bi-monthly
Coindesk
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Michael Saylor's company, Strategy (MSTR), plans to shift its preferred equity, Stretch (STRC), from monthly to bi-monthly dividend payments. This change aims to reduce stock price volatility, enhance liquidity, and allow for more consistent bitcoin purchases, with the first payment expected on July 15 after a shareholder vote.
- 01Strategy aims to reduce price volatility by shifting STRC dividends to bi-monthly payments.
- 02The new payment schedule is designed to improve liquidity and support consistent bitcoin buying.
- 03STRC would become the only semi-monthly dividend-paying preferred share in the market.
- 04The first bi-monthly payment is set for July 15, following a shareholder vote on June 8.
- 05Historical data shows a significant drop in STRC's volatility after the proposed changes.
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Michael Saylor's Strategy (MSTR) has proposed changing the dividend payment schedule for its preferred equity, Stretch (STRC), from monthly to bi-monthly. This move aims to reduce the typical price drop following ex-dividend dates and lower overall volatility, helping keep STRC trading closer to its $100 par value. The company anticipates that more frequent distributions will enhance liquidity and allow for steadier bitcoin purchases. Currently, STRC experiences an average price drop of $0.45 after ex-dividend dates, with recovery taking about two weeks. By smoothing price action, Strategy hopes to facilitate capital raising through its at-the-market (ATM) program. If approved, STRC will be the only semi-monthly dividend-paying preferred share in the market, contrasting with the 921 that pay quarterly and 32 that pay monthly. The first semi-monthly payment is expected on July 15, following a shareholder vote on June 8.
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This change could lead to more stable investment returns for shareholders and better liquidity in the market, benefiting both existing and potential investors.
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