Strategy proposes daily dividends for STRC, STRD, STRF and STRK, with a shareholder vote set for Oct. 28
Strategy wants to pay dividends every day on four preferred stocks
Bitcoin treasury company Strategy is asking shareholders to approve daily dividends on four of its U.S.-listed preferred stocks: STRC, STRD, STRF and STRK. The company's board approved the proposal on Sept. 24, according to an 8-K filing with the U.S. Securities and Exchange Commission.
Under the proposed terms, each of the four securities would have a dividend record date every calendar day, including weekends and holidays. Any dividend declared for a given date would be paid on the next business day, the company said.
Strategy said the change would not alter the dividend rates on the four securities or increase its total regular dividend obligations.
How the payment schedule and the vote would work
- The proposal covers STRC, STRD, STRF and STRK, which Strategy describes as the core of its "Digital Credit" platform.
- Strategy said more frequent payments could make the preferred stocks more attractive and support its ability to raise preferred equity capital for its bitcoin treasury strategy.
- Approval requires a majority of the voting power of Strategy's outstanding common stock, according to its preliminary proxy statement. Holders of the four preferred stocks do not vote on the proposal.
- Strategy has scheduled a virtual special meeting for Oct. 28 to vote on the amendments.
What the SEC filing and company materials say
The proposal was approved by Strategy's board on Sept. 24 and disclosed in an 8-K filing with the SEC. A separate preliminary proxy statement sets the special meeting for Oct. 28 and states that a majority of the voting power of outstanding common stock is needed for approval.
In a statement on its voting page, Strategy said: "Strengthening our preferred securities would create a competitive advantage for Strategy and increased demand could drive amplification and bitcoin per share."
STRC would be the first of the four to switch, with an initial record date of Nov. 1 and payment the following day if shareholders approve the amendments. STRF, STRD and STRK would follow in January. If approved, the amendments would take effect after Strategy files amended certificates of designation in Delaware.
Saylor says the change targets price stability and demand
Strategy co-founder and Executive Chairman Michael Saylor said on X that the proposed changes "aim to support price stability, liquidity, and demand."
STRC is a variable-rate perpetual preferred stock designed to trade around a $100 par value. It closed down 0.6% at $98.31 on Thursday, per TradingView, after falling below $75 in June.
Shareholders previously approved moving STRC from monthly to semi-monthly dividends in June. CEO Phong Le said at the time that paying twice a month was intended to stabilize its price, improve liquidity and give holders a faster chance to reinvest. After the June drop, Strategy introduced a $1 billion repurchase program for its preferred stock, initially prioritizing STRC, and doubled the authorization to $2 billion earlier this month.
What is confirmed so far
Confirmed details in the filings include the board's Sept. 24 approval, the four securities involved, the daily record date and next-business-day payment structure, the fact that rates and total regular dividend obligations stay the same, the Oct. 28 virtual special meeting, and the requirement that common stockholders holding a majority of voting power approve the change.
What is not yet settled
Shareholders have not yet voted, so it is not known whether the amendments will be approved. The proxy statement setting out the vote is preliminary. The filing does not state that any dividend amount would change.
Why the preferred stocks matter to Strategy
Strategy said the four securities form the core of its "Digital Credit" platform, and that more frequent payments could support demand and its ability to raise preferred equity capital. Saylor said the changes aim to support price stability, liquidity and demand. The company also said strengthening the preferred securities could create a competitive advantage and that increased demand could drive amplification and bitcoin per share.
What happens next
Common shareholders vote at the virtual special meeting on Oct. 28. If the amendments pass, STRC would move first, with an initial record date of Nov. 1 and payment the next day, and STRF, STRD and STRK would follow in January.
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.