Summary
- Bitcoin treasury firm Strategy has submitted a preliminary proxy seeking daily dividend accrual for its preferred stock classes STRF, STRC, STRK, and STRD.
- Dividends are set to accrue every calendar day, encompassing weekends and holidays, with payments made on the next business day.
- Shareholders will cast their votes on October 28. The transition for STRC will begin on November 1, while the other three stocks will shift on January 1.
Strategy, a Bitcoin treasury firm, is advocating for daily dividend payments on its four U.S. preferred shares, which include STRF, STRC, STRK, and STRD. Executive chairman Michael Saylor announced this initiative on Thursday, emphasizing the desire for dividends to accrue every single day, including weekends and holidays, with payments to be made the following business day.
The company filed a preliminary proxy on the same day, with a definitive proxy expected by October 5. Shareholders will vote on the proposal on October 28.
Strategy is suggesting daily dividends on $STRF, $STRC, $STRK, and $STRD, which would accrue dividends every calendar day, including weekends and holidays, and be paid the next business day, maintaining unchanged economic conditions. The proposed changes aim to enhance price stability, liquidity, and demand. pic.twitter.com/N0wkXzi1gl
— Michael Saylor (@saylor) September 25, 2026
STRC will be the first to implement this change, with its inaugural record date set for November 1 and the first payment on November 2. The other three stocks will complete their last payments under the current schedule on December 31 before transitioning on January 1.
Currently, STRC has 24 record dates annually; under the proposed plan, all four classes would switch to daily accruals. For the three that typically pay quarterly, president and CEO Phong Le noted that the frequency would increase by a factor of 90.
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Saylor explained, "To achieve low volatility and high liquidity, you need to reduce the duration of the instrument and manage credit actively." He added that, "the more frequent the adjustments, the less volatility there will be." He also noted that lower volatility facilitates easier market entry and exit.
When STRC paid monthly dividends, its stock price typically dropped about 49 basis points the day before a dividend payment, according to Le. After the shift to semi-monthly payments in June, this decline diminished to around 36 basis points.
Strategy anticipates improved month-end valuations for fund managers, a stable option for institutional cash reserves, quicker reinvestment opportunities, potential inclusion in low-volatility indices, and better terms when shares are used as collateral.
Le described it as "the first global security in the world with calendar day accruals and dividends." If the proposal gains approval, these four stocks would be unique in their offering of 365-day accruals, among only five globally that feature daily dividends, collectively valued at $15 billion. "Digital credit and capital are designed to operate daily," he stated.
Shareholders previously showed strong support for the last adjustment, with 97.5% of STRC holders and 99.9% of common shareholders endorsing the switch to semi-monthly payments in June. Since then, Strategy has distributed $255 million in STRC dividends.
The preferred shares are pivotal to Strategy's funding approach. The firm recently acquired $139 million of STRC while halting Bitcoin purchases, raised $2 billion through MSTR stock sales for liquidity, and has a plan that could allow for the sale of up to $1.25 billion of Bitcoin to meet these obligations. Just last week, the firm purchased an additional $76 million worth of Bitcoin, bringing its holdings close to their June peak.