Strategy (NASDAQ: MSTR), the largest corporate Bitcoin treasury company, filed an 8-K with the U.S. Securities and Exchange Commission on Oct. 16, disclosing that its board had declared daily cash dividends for its floating-rate preferred stock STRC for the period from Nov. 1 to Nov. 30. The annualized dividend rate remains 12%.
The filing, under Items 8.01 and 7.01, said the board approved the dividend on Oct. 15 Eastern Time. It is the first time Strategy has published a full daily payout schedule for STRC, though the arrangement still depends on a shareholder vote scheduled for later this month.
$1 per share for November, with daily payments of $0.03 to $0.04
According to the 8-K posted on the company’s website, every calendar day in November, including weekends and holidays, will serve as a record date based on shareholders of record at 5 p.m. New York time. Each payment will be made on the next business day, with the first expected on Nov. 2 and the last on Dec. 1.
Strategy said daily dividends will be either $0.03 or $0.04 per share, totaling $1 per share for the month. That matches a 12% annualized rate on the preferred stock’s $100 stated amount, divided across 12 months.
Because the Federal Reserve Bank of New York is closed on days including Veterans Day and Thanksgiving, some record-date dividends will be combined and paid on the same business day. The company also said it expects these distributions to be treated as a return of capital for U.S. federal tax purposes, which would not be taxable to the extent of a holder’s tax basis in the shares.
Management also said it will continue recommending that the board maintain the 12% dividend rate until STRC demonstrates that it can trade in a healthy and sustained manner around $100 per share.
Two conditions must be met before the daily schedule takes effect
The November daily dividend schedule comes with conditions. Strategy said both of the following must happen for the plan to become effective.
- Shareholders must approve the daily dividend amendment at the special meeting on Oct. 28, with approval required by 5 p.m. New York time on Oct. 31.
- The amended Certificate of Designations for STRC must be filed and become effective before 12:01 a.m. Eastern Time on Nov. 1.
If those conditions are satisfied, the semi-monthly dividend previously scheduled for Nov. 15, with an Oct. 31 record date, will be canceled. If the conditions are not met, Strategy said it expects to make that Nov. 15 payment and continue under the existing semi-monthly structure. The company added that the two payment paths will not both become unconditional obligations under any circumstances.
Why Strategy wants daily dividends
Strategy had already proposed the change in a preliminary proxy statement filed on Sept. 25. In that filing, the company asked to move all four preferred series — STRC, STRF, STRK and STRD — to daily record-date dividends. STRC is set to switch first in November, while the other three series are expected to follow in January 2027.
According to CoinDesk, the goal is to help STRC move back toward its $100 par value after trading below that level since May. The report said STRC fell to about $71 during a Bitcoin sell-off in June, while rival Strive’s preferred stock SATA already pays dividends on a business-day basis at a 13% annualized rate.
The Block separately reported that the amendment requires approval from a majority of common-stock voting power, and preferred shareholders do not vote on the proposal. STRC had already shifted from monthly to semi-monthly dividends in June.
STRC nears par as MSTR pulls back in premarket trading
StockAnalysis data cited in the report showed STRC closed at $99.53 as of 4 a.m. Taipei time on Oct. 16, close to its $100 par value. Over the same period, MSTR closed at $151.29, up 5.62% on the day. By 7:40 p.m. Taipei time on Oct. 16, however, MSTR had fallen about 2.5% in premarket trading.
STRC has been one of Strategy’s key funding tools for buying Bitcoin in recent years. Its payout frequency and price stability carry direct implications for the company’s ability to issue preferred stock. The latest 8-K turns what had previously been a proposal into a 30-payment schedule for November, but final implementation still hinges on the Oct. 28 shareholder meeting and the effectiveness of the Delaware filing.