CoinDesk
Strategy is asking shareholders to approve daily dividend payments on its four U.S.-listed preferred stocks, with a vote scheduled for Oct. 28. The proposal changes payment timing, not dividend rates or total regular payouts. If approved, STRC’s first daily dividend would be paid on Nov. 2.
STRC has remained below its $100 stated value since May despite a 12% annual dividend rate and Strategy’s preferred-share repurchases. The stock fell as low as $71 during Bitcoin’s June selloff. Strategy has spent about $1 billion on preferred-share buybacks under a $2 billion program, including $174 million of STRC in the week ended Sept. 20.
Why it matters
Daily payments could shorten the wait for investors to receive and reinvest dividends, while smoothing price moves around payment dates. Strategy says the goal is to help STRC trade closer to $100. The proposal is aimed primarily at STRC, which moved from monthly to twice-monthly payments in June.
The change does not raise the stated dividend rate or the total regular payout. Its potential appeal rests on payment frequency and whether that makes the shares more attractive to income-focused buyers.
Market impact
Shareholders vote on Oct. 28. Approval would put the first daily STRC dividend on Nov. 2, while leaving the regular payout amount unchanged. Investors will be watching whether the new schedule helps STRC move toward its stated value after months below $100.
Strategy also holds 846,000 BTC, acquired for $63.80 billion at an average $75,416 per coin. Bitcoin traded around $83,600 on Friday, while MSTR was down 2.15% at around $158.
Frequently asked questions
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What would Strategy’s daily dividend proposal change?
It would change the timing of payments on Strategy’s four U.S.-listed preferred stocks. Dividend rates and total regular payouts would remain unchanged.
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When will shareholders vote on the proposal?
The shareholder vote is scheduled for Oct. 28.
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When could STRC begin paying dividends daily?
If shareholders approve the proposal, STRC’s first daily dividend would be paid on Nov. 2.
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Why is Strategy targeting a $100 price for STRC?
STRC has remained below its $100 stated value since May despite a 12% annual dividend rate. Strategy says more frequent payments could help the shares trade closer to that value.
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How much STRC has Strategy repurchased?
Strategy repurchased about $1 billion of preferred shares under a $2 billion program, including $174 million of STRC in the week ended Sept. 20.
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