Strategy Seeks Shareholder Vote to Pay Daily Dividends on STRC and Three Other Preferreds

Strategy is asking its shareholders to approve daily dividends on its four U.S.-listed preferred stocks, STRF, STRC, STRK and STRD. The bitcoin treasury company filed a preliminary proxy statement on Friday for a virtual special meeting on Oct. 28.

Under the proposal, every calendar day, including weekends and holidays, would become a dividend record date, with the payment made on the next business day. Dividend rates and total annual payouts would stay the same, according to the filing. STRC currently pays twice a month, while STRF, STRK and STRD pay quarterly.

“The proposed changes aim to support price stability, liquidity, and demand,” Executive Chairman Michael Saylor wrote on X.

STRC, which has $9.3 billion in notional value outstanding, would move first. Its last semi-monthly record date is expected to be Oct. 15, and its first daily record date Nov. 1, paid Nov. 2. The other three are expected to keep their quarterly schedule through a Dec. 15 record date and make their first daily payment on Jan. 4, 2027, according to an investor presentation.

Daily amounts would be rounded down to the cent, with the 15th and month-end amounts truing up each half-month. At an illustrative 12% rate, a $100 STRC share would earn 3 or 4 cents a day. The amended terms would also let Strategy name extra business days, which the filing said could eventually allow payments seven days a week.

Only holders of Strategy’s common stock as of Sept. 25 can vote, and the proposal passes only if holders of more than half the voting power of all outstanding common shares vote for it. Preferred holders have no vote on the proposal. Saylor holds 32.9% of the total voting power, almost entirely through Class B shares that carry 10 votes each, the proxy shows. Voting is expected to open Oct. 5, when Strategy plans to file its definitive proxy.

In June, shareholders approved STRC’s move from monthly to semi-monthly dividends, with 99.9% of MSTR votes cast in favor, according to the presentation.

Strategy’s board said more frequent payments would reduce the accrued dividend built into each share’s price, damping swings around record dates. For STRC, the board said the change would support its aim of keeping the stock trading at or near its $100 stated amount. The presentation said STRC’s median price drop on ex-dividend dates fell to 0.36% under semi-monthly payouts from 0.49% under monthly ones.

The proposal comes weeks after Strategy doubled its preferred buyback authorization to $2 billion after repurchasing STRC at around $97 a share.

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