Strategy is asking shareholders to approve daily dividends for its four U.S.-listed preferred stocks: STRF, STRC, STRK, and STRD.
The bitcoin treasury company filed a preliminary proxy statement on Friday for a virtual special meeting scheduled for Oct. 28. Under the proposal, every calendar day — including weekends and holidays — would become a dividend record date, with payment made on the next business day. The filing says dividend rates and total annual payouts would remain unchanged.
STRC currently pays dividends twice a month. STRF, STRK, and STRD pay quarterly. Executive Chairman Michael Saylor wrote on X that the proposed changes are intended to support price stability, liquidity, and demand.
How the transition is expected to work
STRC, which has $9.3 billion in notional value outstanding, would move first. Its last semi-monthly record date is expected to be Oct. 15, and its first daily record date is expected to be Nov. 1, with payment on Nov. 2.
According to an investor presentation, the other three preferred stocks are expected to stay on their quarterly schedule through a Dec. 15 record date. Their first daily payment is expected on Jan. 4, 2027.
Daily amounts would be rounded down to the nearest cent, with the amounts on the 15th and at month-end adjusted within each half-month period. At an illustrative 12% rate, a $100 STRC share would earn 3 or 4 cents per day.
The amended terms would also allow Strategy to designate additional business days. The filing says that could eventually make seven-day-a-week payments possible.
Who can vote
Only holders of Strategy common stock as of Sept. 25 are eligible to vote on the proposal. It will pass only if holders of more than half the voting power of all outstanding common shares vote in favor.
Preferred holders do not get a vote. The proxy shows that Saylor controls 32.9% of total voting power, almost entirely through Class B shares that carry 10 votes each.
Voting is expected to open on Oct. 5, when Strategy plans to file its definitive proxy statement.
Why Strategy says it wants the change
According to the investor presentation, shareholders in June approved STRC's move from monthly to semi-monthly dividends, with 99.9% of MSTR votes cast supporting the change.
Strategy's board said more frequent payments would reduce the accrued dividend embedded in each share's price and soften swings around record dates. For STRC specifically, the board said the change would support its goal of keeping the stock trading at or near its $100 stated amount.
The presentation said STRC's median price drop on ex-dividend dates fell to 0.36% under semi-monthly payouts from 0.49% under monthly payouts.
The proposal comes weeks after Strategy doubled its preferred buyback authorization to $2 billion after repurchasing STRC at around $97 per share.