Strategy Wants to Pay Its Preferred Dividends Every Day

Strategy's board has approved a proposal to put all four of its U.S.-listed preferred stocks — STRF, STRC, STRK and STRD — on daily dividend record dates, with the economics unchanged and the idea being to steady trading prices. The plan needs a shareholder vote at a virtual special meeting on October 28, and nothing changes until it passes.

The bitcoin treasury company wants every calendar day — weekends and holidays included — to be a dividend record date for STRF, STRC, STRK and STRD, with each day's declared dividend paid on the next business day. The annual rates don't change; the checks just arrive in much smaller slices, much more often.

A $100 STRC share at the current 12% variable rate would accrue roughly three to four cents a day, rounded down to the cent with a true-up on the 15th and at month-end. For STRC, which moved from monthly to semi-monthly payouts in June, the accrual rate would rise about 15-fold; for the other three, which pay quarterly, it would rise roughly 90-fold.

The plan

Shareholders get no say from the preferred holders themselves: holders of STRC, STRD, STRF and STRK do not vote on the proposal. Approval requires a majority of the voting power of all outstanding common stock — not just votes cast — with only common holders on record as of September 25 eligible.

The vehicle for that approval is a virtual special meeting on October 28. Strategy has filed a preliminary proxy statement; voting is expected to open October 5 when the definitive proxy lands. Co-founder and executive chairman Michael Saylor holds 32.9% of the total voting power, almost entirely through Class B shares carrying ten votes each.

"The proposed changes aim to support price stability, liquidity, and demand," Saylor said in a post on X, as reported by The Block and CoinDesk. Nothing changes economically — only the calendar does.

Why now

The driver is STRC, the $9.3 billion variable-rate flagship of Strategy's Digital Credit platform, which is designed to trade around a $100 par value. It closed down 0.6% at $98.31 on Thursday, per TradingView, and fell as low as $71 during bitcoin's June selloff. Strategy's own presentation states the objective bluntly: "Our Objective is for STRC to Trade Over Time at $99-$100."

The company's evidence for the fix is its ex-dividend price history. STRC's median opening-price drop on ex-dividend dates fell to 0.36% under semi-monthly payouts from 0.49% under monthly ones, and management expects daily accrual to damp the gap further. June's monthly-to-semi-monthly switch — approved by 99.9% of the MSTR votes cast — is the precedent: the new proposal is the same playbook, pushed further.

That playbook also has a competitor. Strive's perpetual preferred SATA already pays dividends every business day at a 13% annual rate and holds near $100 — and Strategy's own deck concedes the comparison, noting it includes Strive's security in its market screen. If the proposal passes, Strategy says its preferreds would represent about 93% of the global daily-dividend preferred market capitalization, per a Bloomberg screen cited in the deck.

The bigger machine

The preferreds are no side project. Digital Credit has scaled to $16 billion in notional value in 20 months — STRF at $1.3 billion, STRC at $9.3 billion, STRK at $1.4 billion, STRD at $1.4 billion. Alongside the payout calendar, Strategy doubled its preferred repurchase authorization to $2 billion this month and has already spent roughly $1 billion, including $174 million of STRC in the week ended September 20, with $900 million of capacity remaining.

The amended terms also build in a longer option: the definition of "business day" is written to give Strategy flexibility to accommodate paying dividends seven days a week in the future, per the deck and the filing.

For now, the sequencing is set. STRC moves first — its last semi-monthly record date on October 15, its first daily record on November 1, with the first payment on November 2. STRF, STRK and STRD keep their quarterly schedule through a December 15 record date and make their first daily payment on January 4, 2027. The proposal needs a shareholder yes on October 28 for any of that to happen. Strategy shares closed around $158.64 on Friday, down about 2.15%, with bitcoin near $83,600 — the backdrop for a company holding 846,000 BTC bought at an average $75,416.