Strategy is asking shareholders to approve daily dividends for its four U.S.-listed preferred stocks — STRF, STRC, STRK and STRD — with a vote set for Oct. 28.
The company proposed that dividends would accrue every calendar day, including weekends and holidays, and be paid on the next business day. Strategy said the change would alter payment timing only. Dividend rates and total regular dividend amounts would stay the same.
If shareholders approve the proposal, STRC’s first daily dividend would be paid on Nov. 2.
STRC is the main focus of the proposal
The move is primarily aimed at STRC. The preferred stock switched from monthly to bi-monthly payments in June, but it has stayed below its stated $100 value since May. During bitcoin’s sell-off in June, STRC fell as low as $71. Its annual dividend rate is currently 12%.
Strategy said the goal of the change is to support a trading price closer to $100. Daily payments could make STRC more appealing to income-focused investors by cutting the wait to receive and reinvest dividends. They could also smooth price moves around payment dates.
Preferred share buybacks have reached about $1 billion
Alongside the dividend proposal, Strategy said it has spent about $1 billion repurchasing preferred shares under its $2 billion program. That figure includes $174 million of STRC bought back in the week ended Sept. 20.
According to the report, one reason STRC has struggled is competition from Strive’s ASST perpetual preferred SATA, which pays dividends every business day at a 13% annual rate and has continued to trade near $100. The report said daily payments could help STRC close the remaining gap, with the stock currently priced around $98.65.
Bitcoin holdings and market prices
As of Monday, Strategy held 846,000 BTC. The company said it acquired those holdings for $63.80 billion at an average cost of $75,416 per coin.
Bitcoin traded around $83,600 on Friday, while MSTR was down 2.15% at about $158. The market line in the source also showed MSTR at $158.64 and BTC at $83,829.59.
