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Industry

Michael Saylor’s Strategy Proposes Daily Dividends on Preferred Stocks

The company says payout economics would stay the same if shareholders approve daily record dates for its Nasdaq-listed preferreds.

Written By Gopal Solanky
Published 1 hour ago
Make The Crypto Times preferred on GoogleGoogle
3D orange text spelling "Strategy" ending with an integrated Bitcoin symbol, set against a dark wall and marble surface.

Strategy Inc. is proposing daily dividends on its U.S.-listed preferred securities, $STRF, $STRC, $STRK, and $STRD, with payments accruing on every calendar day, including weekends and holidays, and paid on the next business day. The company said the economics of the securities would remain unchanged.

The announcement came on September 25, 2026, alongside a preliminary proxy filing for a special meeting of stockholders. Strategy said the change is designed to support price stability, liquidity, and demand for the preferred shares, which the firm uses as part of its Bitcoin treasury financing structure.

AI Summary
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Strategy proposes daily dividend record dates, with payments next business day, covering weekends and holidays.
STRC’s 12% rate shifts from semi‑monthly to daily; STRF, STRK, STRD move from quarterly to daily.
First daily payouts start Nov 1/2 for STRC and Jan 1/4, 2027 for the other three securities.

The four Nasdaq-listed instruments sit above common $MSTR stock in the capital stack and pay cash distributions subject to board declaration. STRC, the variable-rate Stretch preferred, currently pays a 12.00% annualized rate on a $100 stated amount on a semi-monthly schedule. STRF and STRD carry 10.00% fixed rates, while STRK pays 8.00%. Strategy has already shifted STRC from monthly to semi-monthly dividends after an earlier shareholder vote.

How the daily cadence would work

If approved, each calendar day would become a record date. The related dividend would be payable on the next following business day, defined as any day other than Saturday, Sunday, or a day when the Federal Reserve Bank of New York is closed. The company said the definition is also designed to leave room for possible seven-day payments in the future. 

Strategy said annual dividend amounts would not change. Payments would simply be made more frequently. For STRC, that would move the cadence from twice a month to daily. For STRF, STRK, and STRD, it would move from quarterly to daily. Dividends would remain payable only when, as, and if declared by the board or an authorized committee from legally available funds.

The proposed transition dates are staggered. If stockholders approve the amendments and the restated certificates of designations become effective, Strategy expects STRC’s first record and payment dates under the new schedule on November 1 and November 2, 2026. For STRF, STRK, and STRD, the first record and payment dates would be January 1 and January 4, 2027.

The company described the move as the next step after the June 2026 STRC amendment, which it said received 97.5% support from STRC shares and 99.9% support from $MSTR shares voted. That earlier change left the annual rate unchanged while splitting payments across the 15th and month-end. 

Vote timeline and stated rationale

Strategy filed a preliminary proxy on September 25. It expects to file a definitive proxy around October 5, when voting would open. The virtual special meeting is scheduled for October 28, 2026.

The company said daily record dates could reduce reinvestment lag, lower month-end price swings, and make the preferreds more comparable to money-market fund accrual cycles. In its investor presentation, Strategy also argued that more frequent payments could support liquidity and demand for what it calls digital credit securities.

Those securities have become central to Strategy’s model of issuing preferred stock to fund Bitcoin accumulation while offering income products senior to common equity. Crypto Times has previously covered how the preferred perpetuals sit in a seniority ladder and how Strategy later raised the STRC rate to 12% while building a dedicated USD reserve for distributions.

The preferreds are not collateralized by Bitcoin. They have a preferred claim only on residual company assets. Dividends are not guaranteed. Strategy’s materials also note that STRC’s variable rate can be adjusted monthly and may be lower in the future.

Stockholders entitled to vote should review the proxy materials on the company’s site and the SEC’s website. No vote is being solicited through the September 25 communication itself. If the amendments pass, the restated certificates would take effect upon filing in Delaware.

Also read: Trump Ethics Filing Shows July Buys of Strategy (MSTR) and Coinbase (COIN) Stocks

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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