Image Credit: Shutterstock
- Strategy will ask shareholders on Oct. 28 to approve daily dividends for its four U.S.-listed preferred stocks without increasing dividend rates.
- If approved, STRC would begin its daily dividend schedule on November 1 followed by STRF, STRK and STRD on January 1, 2027.
- Strategy states that more frequent payments could improve liquidity and market efficiency while reducing reinvestment delays and dividend-related price movements.
Strategy will ask shareholders on Oct. 28 to approve daily dividends for its four U.S.-listed preferred stocks, replacing quarterly or twice-monthly payments without increasing their dividend rates or the company’s overall dividend obligations.
The proposal covers STRF, STRC, STRK and STRD. Each calendar day would become a dividend record date, including weekends and holidays, with declared dividends generally payable on the next business day.
STRC Would Begin Daily Dividend Schedule On November 1
STRC currently uses a twice-monthly dividend schedule after shareholders approved the change in June. STRF, STRK and STRD pay quarterly.
If the amendments are approved and become effective, STRC would move first. Its initial daily-schedule dividend would be payable Nov. 2 to holders of record on Nov. 1.
STRF, STRK and STRD would follow from Jan. 1, 2027, with the first payments due Jan. 4 for holders of record on Jan. 1, Jan. 2 and Jan. 3.
Dividends would be calculated separately for each semi-monthly period. Daily amounts would mostly be rounded down to the nearest cent, with fractional amounts carried forward and the final day of each semi-monthly period left unrounded so the full scheduled amount accrues.
Common Shareholders Will Decide October 28 Proposal
Only holders of Strategy common stock as of Sept. 25 are entitled to vote on the proposal. STRF, STRC, STRK and STRD holders do not have voting rights on the matters scheduled for the special meeting.
Approval requires holders representing a majority of the voting power of all outstanding common stock to vote in favor. Strategy’s board recommends approval.
The amendments would not change STRF’s 10% rate, STRK’s 8% rate or STRD’s 10% rate. STRC’s variable rate is currently 12%. The proposal would preserve Strategy’s ability to adjust STRC’s rate, while aligning its rate periods and notice timing to calendar months.
Strategy Links Daily Dividends to Preferred-Stock Liquidity
Strategy says more frequent payments could reduce reinvestment delays and dividend-related price movements while improving liquidity and market efficiency.
The company also said stronger demand for its preferred securities could improve access to preferred equity capital used in its Bitcoin treasury strategy. The Oct. 28 proposal itself changes the dividend framework and does not authorize a new capital raise.
If approved, Strategy intends to file amended certificates with Delaware, with STRC’s changes effective Nov. 1 and the other three securities changing on Jan. 1, 2027.
