Strategy asks shareholders to approve daily dividends to lift STRC toward $100
Strategy wants preferred stock dividends paid every day
Strategy, the company that owns more bitcoin than any other public company, is asking its shareholders to approve daily dividends on its four U.S.-listed preferred stocks: STRF, STRC, STRK and STRD.
Under the proposal, dividends would build up every calendar day, including weekends and holidays, and would be paid on the next business day. The plan changes when dividends are paid, not how much is paid: dividend rates and total regular payouts would stay the same.
Shareholders are due to vote on Oct. 28. If the proposal passes, STRC's first daily dividend would be paid on Nov. 2.
Key points
- Strategy has asked shareholders to approve daily dividends across four preferred stocks.
- A vote is scheduled for Oct. 28, with STRC's first daily payment set for Nov. 2 if approved.
- Dividend rates and total regular dividend amounts would not change.
- STRC has stayed below its $100 stated value since May, even with a 12% annual dividend rate.
- Strategy has spent about $1 billion buying back preferred shares under a $2 billion programme, including $174 million of STRC in the week ended Sept. 20.
Why the change is aimed mainly at STRC
Preferred stocks are a type of share that usually pays a set dividend. STRC is one of Strategy's preferred stocks, and it carries a stated value of $100. That stated value is the price the company is trying to keep the shares trading near.
STRC moved from monthly to bi-monthly dividend payments in June. It has still not returned to $100 since May, and it fell as low as $71 during a bitcoin selloff in June. Its annual dividend rate is currently 12%, and it is now priced around $98.65.
According to the report, a key reason STRC has struggled is competition from Strive's perpetual preferred stock SATA, which pays dividends every business day at a 13% annual rate and continues to trade near $100.
Strategy says the goal of daily payments is to support a trading price close to $100. The report notes that daily payments could appeal more to income investors by shortening the wait to receive and reinvest dividends, and by smoothing price moves around payment dates.
Strategy's bitcoin holdings and buybacks
Strategy has spent roughly $1 billion repurchasing preferred shares under its $2 billion programme, including $174 million of STRC in the week ended Sept. 20.
As of Monday, the company held 846,000 BTC, acquired for $63.80 billion at an average price of $75,416 per coin. Bitcoin traded around $83,600 on Friday, while MSTR was down 2.15% at around $158.
What is confirmed
- Strategy is asking shareholders to approve daily dividends for STRF, STRC, STRK and STRD.
- Dividends would accrue every calendar day and be paid the next business day.
- The vote is set for Oct. 28, and STRC's first daily dividend would be paid Nov. 2 if approved.
- Dividend rates and total regular dividend amounts would remain unchanged.
- STRC's annual dividend rate is 12%, and it has traded below $100 since May.
What is still unclear
It is not confirmed that daily dividends will actually push STRC back to $100. The report describes the change as a possible catalyst rather than a guaranteed result. It is also not clear from the source material what happens if shareholders vote the proposal down.
What happens next
Shareholders vote on Oct. 28. If they approve the change, STRC's first daily dividend would be paid on Nov. 2.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.