Strategy Seeks Shareholder OK for Daily Dividends on Preferred Stock

Strategy, the largest corporate Bitcoin treasury holder with 846,000 BTC on its balance sheet, is asking shareholders to approve switching all four of its preferred stock offerings to daily dividend payments. The company's board approved the proposal on Thursday, according to a Friday filing with the US Securities and Exchange Commission, with shareholders set to vote at a virtual special meeting on Oct. 28.

If approved, each calendar day would become a dividend record date, with payments made on the following business day. STRC would be the first to transition, with its initial daily dividend expected on Nov. 2. The remaining preferred stocks — STRF, STRK, and STRD — would follow in January, with first daily payments scheduled for Jan. 4. The amendments would not change dividend rates or the total amount paid, according to the filing, and would take effect after Strategy files updated certificates with the state of Delaware.

The move follows a similar shift by fellow Bitcoin treasury firm Strive, which became the first public company to adopt daily dividends when it moved its SATA preferred stock to a business-day payment schedule in June at a 13% annual rate. Strategy's approach differs by using every calendar day as a record date rather than only business days. Strive currently holds 26,355 BTC, per BitcoinTreasuries.NET data.

Strategy pioneered what CEO Phong Le has described as "digital credit" — preferred securities designed to generate yield from the company's Bitcoin-backed capital structure. STRC, a cornerstone of that strategy, has seen significant volatility this year, falling to an intraday low of $71.25 in June from its $100 stated amount. Speaking on the Coin Stories podcast, Le attributed the price decline to increased leverage entering the STRC market, though the company's broader Bitcoin accumulation continues alongside the push toward daily income payments.