Strategy, one of the leading treasury companies in the cryptocurrency markets, announced that it is planning a significant change for its high-yield preferred share series called STRC. The company, based in the USA and largely known for its Bitcoin investments, has presented a proposal that, if approved by shareholders, will pave the way for dividend payments to STRC series shares twice a month. Michael Saylor, chairman of the company’s board of directors, stated that the new model will not lead to any changes in the dividend rate or annual payment obligation.
Transition to semi-monthly payment in dividend system
The planned change directly concerns STRC shareholders. There is no change in the annual payment commitment of STRC, which currently offers a high dividend of 11.5 percent; However, if the proposal is implemented, payments will be made twice a month. Saylor stated that they aim to increase price stability, reduce volatility and support liquidity with such a regulation.
“The proposed changes are aimed at keeping the price stable, limiting cyclical volatility, promoting liquidity and increasing demand.”
According to data from the company, demand for STRC shares has increased significantly. Looking at the latest filing alone, STRC’s total value in circulation reached $6.4 billion.
What will the new system bring as volatility decreases?
Price fluctuation, which reached 13 percent in the first eight months after the launch of the STRC series, dropped to 2.1 percent in the last two months. However, Saylor and his team are of the opinion that this volatility can be further reduced with the introduction of the semi-monthly payment plan.
The voting process for the amendment proposal will end on June 8. If investors approve, the new payment calendar will mark July 15 as the first half-monthly dividend date.
Share prices and market impact
Strategy shares attracted attention by gaining 11.8 percent in value on Friday, when the details of the plan became clear. In the same time period, the Bitcoin price increased by 3 percent to $ 77,400, causing significant activity both in the industry and in the company.
The company, led by Michael Saylor, is known for its long-term Bitcoin strategy; Recently, it has made a name for itself with its innovative approaches to traditional financial instruments.
CryptoAppsy According to data, the double-digit increase in MSTR shares in a short time as Bitcoin rose to $ 77,400 attracted the attention of investors.
The company’s new distribution plan could serve as an important example of how more frequent and regular dividend payments will affect volatility in the stock market. All eyes will be on the vote on June 8 for the final decision.
