Bitcoin treasury company Strategy Inc. is asking shareholders to approve daily dividends on its four Nasdaq-listed preferred stocks, a change the company says is designed to keep its variable-rate series trading near its $100 stated value. The board approved the proposal on September 24 and filed a preliminary proxy statement with the U.S. Securities and Exchange Commission the following day, according to the filing. A special shareholder meeting has been scheduled for October 28.
Every calendar day becomes a record date
The proposed amendments would give each of the 10.00% Series A Perpetual Strife Preferred Stock (STRF), the variable-rate Series A Perpetual Stretch Preferred Stock (STRC), the 8.00% Series A Perpetual Strike Preferred Stock (STRK), and the 10.00% Series A Perpetual Stride Preferred Stock (STRD) a regular dividend record date on every calendar day, with any declared dividend payable on the next business day. The filing states the changes would not alter any series’ dividend rate or the company’s total payment obligations. If shareholders approve, STRC would switch first, with a first payment on November 2 to holders of record November 1, followed by STRF, STRK and STRD on January 4, 2027.
An attempt to steady STRC near par
The redesign is aimed chiefly at STRC, which has traded below its $100 par value for much of the year even as the company kept buying back the preferred shares. Strategy moved STRC from monthly to semi-monthly dividends in June and currently pays a 12% annualized rate on the series. The company says the daily schedule would “reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability.” Executive Chairman Michael Saylor described the changes as intended to support “price stability, liquidity, and demand.”
A lever on the bitcoin balance sheet
Preferred stock has become a central funding engine for Strategy’s bitcoin acquisition strategy, alongside its Digital Credit Securities repurchase program. Strategy, the largest corporate holder of bitcoin, has used its preferred equity program to fund treasury purchases while keeping a cash reserve to cover preferred dividends. The amendments would take effect only after stockholders approve them and the company files the amended certificates of designations with the Delaware Secretary of State, leaving the daily-dividend structure a proposal until then.
