TLDR
- MSTR jumped 12% Friday as bitcoin climbed 2.75% following Iran’s Strait of Hormuz announcement
- Fed Fund futures put odds of a rate cut this year near 50% after the news
- Vanda Research flagged renewed meme stock enthusiasm driven by social media buzz
- Strategy filed a proxy to shift STRC preferred stock dividends from monthly to semi-monthly
- STRC’s outstanding notional value has reached $6.4 billion, with volatility falling to 2.1%
Strategy had a strong Friday. MSTR jumped 11.8% as bitcoin climbed roughly 3% to $77,400, with the move driven by a mix of macro news, speculative trading momentum, and a fresh proposal from the company itself.
The bitcoin rally was triggered by news out of Iran. The country announced it would allow the Strait of Hormuz to reopen, provided a ceasefire holds. That prompted a sharp move in U.S. interest rate futures, with Fed Fund futures putting the odds of a rate cut this year at close to 50%.
Lower rate expectations tend to lift risk assets, and bitcoin was no exception.
Vanda Research, which tracks self-directed retail investors, also flagged the first signs of renewed meme stock activity. The firm said certain stocks are moving on social media buzz and speculative momentum rather than fundamentals. Strategy, with its large bitcoin holdings, fits neatly into that category.
MSTR has long been used as a proxy for bitcoin exposure through traditional equity markets. When bitcoin moves, MSTR tends to follow — often with more force.
STRC Dividend Proposal
Beyond the price action, Strategy also filed a proxy Friday that would change how dividends are paid on its STRC preferred stock series, known as “Stretch.”
Under the proposal, payments would shift from monthly to semi-monthly. Executive Chairman Michael Saylor said the change is designed to “stabilize price, dampen cyclicality, drive liquidity, and grow demand.”
The annual dividend rate of 11.5% would remain unchanged, and Strategy’s total dividend obligation would not be affected.
STRC has been a popular product. Outstanding notional value has grown to $6.4 billion as of Friday’s filing.
Volatility and Voting
Volatility on STRC has already fallen sharply — from 13% in the first eight months after launch down to just 2.1% over the past two months. Strategy believes moving to semi-monthly payments would push that number lower still.
Voting on the amendment closes June 8. If approved, the first semi-monthly payment is expected on July 15.
MSTR ended the day up 11.8%, with bitcoin sitting at approximately $77,400.
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