Crypto · updated 50m ago · 3 min read
Strategy Seeks Shareholder Approval for Daily Dividends on STRF, STRC, STRK, and STRD
Strategy seeks shareholder approval to pay daily dividends on STRF, STRC, STRK, STRD. Dividends recorded daily, paid next business day, with no rate change.
12 outlets told this the same way.
6 of 8 outlets skipped it: record dates include weekends and holidays; payment next business day.
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Daily preferred dividends
Strategy, the bitcoin treasury company formerly known as MicroStrategy, is asking shareholders to approve daily dividends on four preferred stocks, STRF, STRC, STRK, and STRD, with dividends calculated every calendar day including weekends and holidays. Strategy said in a statement, "If approved and adopted, we believe this would reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability," and the company scheduled a meeting for October 28 to vote on the proposal. Strategy said it would pay investors dividends every calendar day, including weekends and holidays, and it said the move would not change dividend rates or total regular payouts.
Strategy also said it last week bought 950 bitcoins for $75.7 million, its first buy since August, as it focused on protecting its balance sheet and sold chunks of its bitcoin. Strategy’s proposal would shift the payment cadence while keeping the distinction between the daily record date and the payment date, with distributions tied to Saturdays, Sundays, or any holiday generally payable on the next business day if announced.
STRC first, others later
Strategy’s plan would make STRC switch first, with an initial daily record date of Nov. 1 and payment the following day, Nov. 2, if shareholders approve the amendments.
Strategy said the proposal would move STRF, STRK, and STRD to daily record dates on January 1, 2027, with the first payment date on January 4.
The proposal would keep dividend rates and total payment obligations unchanged, and it would calculate dividends day by day while making each calendar day a record date for profits.
Strategy’s filing described the change as a calendar shift rather than a dividend-economics change, and it said the amendments would take effect after Strategy files updated certificates governing the preferred stocks with the state of Delaware.
Strategy also said it would define a business day to accommodate possible seven-day-a-week payments in the future, while the proposal would still generally pay dividends on the next business day when record dates fall on weekends or holidays.
Leverage, liquidity, and voting
Strategy CEO Phong Le attributed STRC’s decline below its $100 stated amount to more leverage entering the market than Strategy had anticipated, and he said, "We did not expect the amount of leverage that came into the system."
Le said some investors borrowed against Bitcoin at lower rates to buy STRC and capture the spread between borrowing costs and STRC’s dividend yield, and he said investors who had borrowed faced pressure to either add more collateral or sell STRC when Bitcoin’s price fell.
Strategy said it wants to prevent another unwind by maintaining a strong US dollar reserve and having a policy that allows the company to repurchase STRC when it trades below its $100 stated amount, and it said it also wants to attract more long-term holders, particularly institutional investors.
Strategy scheduled a virtual special meeting on Oct. 28, and the proposal would require approval by a majority of the voting power of its outstanding common stock, with preferred holders having no vote on the proposal.
Strategy’s board framed the daily schedule as a way to support price stability, liquidity, and demand, and it said the proposed changes aim to support those goals while leaving dividend rates and total annual payouts unchanged.