Strategy Seeks Shareholder Approval to Pay Stretch Preferred Dividend Twice Monthly

Uk Jin

Summary

Strategy said it is seeking to increase the dividend payment frequency for its preferred stock Stretch (STRC) to twice a month from once a month.
It said liquidity and the pace of fundraising around Stretch’s dividend record date tend to surge and then slow sharply, while the stock falls an average of $0.45 on the ex-dividend date before gradually recovering.
Strategy said the dividend schedule change could reduce price volatility, spread liquidity more evenly through the month, soften the ex-dividend impact, expand investor entry and exit opportunities, and improve the pace of dividend reinvestment, while also accelerating additional Bitcoin purchases and increasing the Bitcoin value per share of its common stock.

Forecast Trend Report by Period

*Photo: Lee Young-min, Blomingbit reporter*

Strategy, the world’s largest corporate Bitcoin holder, is seeking to increase the dividend payment frequency for its preferred stock Stretch (STRC) to twice a month from once a month.

BitcoinTreasuries.net reported on April 20 that the company has submitted a proposal for shareholder approval to change Stretch’s dividend schedule to semi-monthly. If shareholders approve the measure on June 8, the change will take effect.

The proposal is aimed at addressing trading distortions tied to the current monthly dividend structure. Stretch has repeatedly seen liquidity and fundraising activity surge around the dividend record date before slowing sharply afterward. BitcoinTreasuries.net said the stock falls by an average of $0.45 on the ex-dividend date and then gradually recovers.

If approved, Stretch would become the only stock product in the world to pay dividends twice a month, Strategy said. The company expects the change to reduce price volatility, spread liquidity more evenly through the month, soften the ex-dividend impact, expand investor entry and exit opportunities, and improve the pace of dividend reinvestment.

Strategy added that stronger demand for Stretch could accelerate additional Bitcoin purchases and increase the Bitcoin value per share of its common stock.

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