Key points

  • Strategy proposes dividend record dates every calendar day, with payment on the next business day.
  • The change covers STRF, STRC, STRK and STRD but would not alter their annual dividend amounts.
  • Shareholders are scheduled to vote on October 28, and the proposal remains subject to approval and board declarations.

Strategy is asking shareholders to approve daily dividend accrual and next-business-day payments for four U.S.-listed preferred securities, a change aimed at shortening the wait between earning and receiving distributions. The proposal covers Nasdaq-listed STRF, STRC, STRK and STRD. Strategy filed a preliminary proxy on September 25 and scheduled a special shareholder meeting for October 28.

Every calendar day would become a record date

Under the proposed structure, each calendar day, including weekends and holidays, would be a dividend record date. The associated payment would be made on the next business day. Strategy's investor presentation says the annual dividend amounts would remain unchanged; only the cadence would change. For STRC, that would increase the number of accrual periods roughly fifteenfold from its current semi-monthly schedule. STRF, STRK and STRD currently pay quarterly and would accrue about ninety times more frequently.

Related reporting: Strategy doubles STRC buyback program to $2 billion after $176.3 million repurchase

The company argues that faster payments could reduce reinvestment lag, improve liquidity and limit price movements around record dates. Those are Strategy's stated expectations, not assured outcomes. Dividends would remain payable only when declared by the board or an authorized committee and when legally available, and the amendments require shareholder approval.

STRC is the immediate focus

Strategy's materials place particular emphasis on STRC, its variable-rate perpetual preferred stock. The investor deck lists STRC at a 12% dividend rate, $9.3 billion of notional value and $141 million in average daily trading volume as of mid-September. Strategy's objective is for the security to trade over time near its $100 stated amount. CoinDesk reported that STRC was around $98.65 when the proposal was published after remaining below $100 since May.

The company has also used repurchases to support its preferred securities. Its presentation says approximately $1.1 billion of STRC had been repurchased, with about $900 million of authorization remaining. CoinDesk reported that Strategy bought $174 million of STRC in the week ended September 20. Daily distributions would add a different mechanism by making income available sooner rather than changing the total annual rate.

Proposed timeline begins in November

Strategy expects to file a definitive proxy and open voting on October 5, followed by the October 28 meeting. If approved, STRC's first record date under the new cadence would be November 1, with payment on November 2. STRF, STRK and STRD would begin with a January 1 record date and a January 4 payment. The company describes those dates as targets that remain conditional on shareholder approval, required filings and board action.

The proposal is part of Strategy's broader use of preferred stock to fund and manage a balance sheet centered on bitcoin. CoinDesk said the company held 846,000 BTC as of Monday, acquired for $63.80 billion at an average price of $75,416 per coin. That structure links investor demand for Strategy's credit-like securities with its ability to raise capital while retaining substantial bitcoin exposure.

What shareholders are deciding

The vote concerns payment frequency rather than a higher promised annual distribution. Investors must weigh whether daily accrual improves market functioning enough to justify the operational change, while recognizing that preferred-stock prices can still respond to interest rates, Strategy's credit profile and bitcoin volatility. Until the vote and subsequent declarations occur, the existing dividend schedules remain in place.

Sources

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