Strategy (MSTR), the U.S.-listed company best known for its Bitcoin treasury strategy, is seeking shareholder approval to overhaul the payout structure of its preferred shares. In a PRE 14A preliminary proxy statement filed with the U.S. Securities and Exchange Commission on Sept. 25, 2026, the company said it will hold a special shareholder meeting on Oct. 28 to ask common shareholders to approve a plan to convert its four U.S.-listed perpetual preferred stocks to a daily dividend model.
If approved, Strategy said its Digital Credit preferred stock series would become among the first listed fixed-income securities in the U.S. stock market to accrue interest on a calendar-day basis and distribute it daily. The company is framing the move as a way to pair a cash-like yield experience tied to crypto-related capital strategy with a regulated public-market structure.
Strategy targets 365-day accrual and daily distribution
According to the company’s latest investor presentation, preferred stocks in the U.S. market are commonly structured around quarterly or monthly dividends. Strategy wants to raise that frequency to all 365 days of the year.
- Dividends would accrue on calendar days, including weekends and holidays, with those amounts paid on the next business day.
- The annualized yield would remain unchanged. Strategy said the total return stays the same, but the annual payout is split into small daily amounts.
The company said the main goal is to reduce price volatility tied to ex-dividend dates. Strategy cited data showing that STRC traded at an average discount of about 49 basis points on ex-dividend dates when it paid monthly. After moving to semi-monthly payments, that discount fell to 36 basis points. Under a fully daily structure, the ex-dividend gap would be nearly eliminated, Strategy said, which would help keep the stock anchored near its $100 par value.
Four preferred stocks, two implementation phases
Strategy said the four perpetual preferred stocks carry different structures, including floating-rate, cumulative, convertible-style and non-cumulative features.
| Ticker | Annual Dividend Rate | Cumulative | Key Feature |
|---|---|---|---|
| STRC | Floating rate (about 12%) | Yes | Anchored to $100 par value; first product in the daily-dividend rollout |
| STRF | 10.00% | Yes | Currently trades at a premium and emphasizes high-coupon cumulative return |
| STRK | 8.00% | Yes | May be convertible into MSTR common stock in the future |
| STRD | 10.00% | No | Non-cumulative dividend structure |
The rollout is planned in two stages.
Phase one: STRC
If shareholders approve the plan on Oct. 28, Strategy expects STRC to adopt its first daily record date on Nov. 1, 2026, with the first daily dividend payment scheduled for Nov. 2.
Phase two: STRF, STRK and STRD
STRF, STRK and STRD will keep their existing quarterly dividend schedules through Dec. 31, 2026. They are then set to switch to daily dividends on Jan. 1, 2027, with Jan. 4 serving as the first payment date of the new year.
Saylor and Phong Le tie the structure to the Bitcoin treasury strategy
In a letter to shareholders, Chairman Michael Saylor and Chief Executive Officer Phong Le said daily dividends can shorten investors’ reinvestment cycle, increase asset turnover and improve market acceptance of the preferred shares as collateral.
Strategy said the broader objective remains its Bitcoin Treasury Strategy. By turning the preferred shares into a highly liquid, cash-like instrument, the company said it can continue raising capital from fixed-income markets at lower cost without diluting common equity ownership or voting rights, giving it more funding capacity for its continuing Bitcoin accumulation cycle.
Meeting date and voting record
The special shareholder meeting is scheduled for 10:00 a.m. Eastern Time on Oct. 28 and will be held in a fully virtual livestream format. Shareholders of record as of Sept. 25 will be eligible to vote.