Michael Saylor's Strategy has proposed daily dividends on STRF, STRC, STRK and STRD. Saylor posted the announcement on his X account Friday. The dividends would accrue every calendar day, inc
Michael Saylor's Strategy has proposed daily dividends on STRF, STRC, STRK and STRD. Saylor posted the announcement on his X account Friday. The dividends would accrue every calendar day, including weekends and holidays, and be paid on the next business day.
"The proposed changes aim to support price stability, liquidity, and demand," Saylor wrote, noting that the economics of the preferred stocks would remain unchanged.
The Bitcoin treasury company has called a special shareholder meeting for Oct. 28 to vote on the change. Dividend rates and total payouts would stay the same. What changes is how often investors get paid.
The goal is to "reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability,” as per its shareholder vote page.
Related: Michael Saylor's Strategy restarts buying BTC
Once shareholders approve, STRC would switch first, with its first daily record date on Nov. 1 and its first payment the day after. STRF, STRK and STRD would then follow, with a first record date of Jan. 1, 2027 and a first payment on Jan. 4.
The final proxy and the opening of voting are set for Oct. 5. But only common stockholders vote on the proposal. Preferred holders, the investors directly affected, do not, according to The Block.
The latest move would bring a sharp jump in payout frequency.
In June, Strategy approved monthly to bi-monthly dividends, which resulted in 24 record dates a year. Daily payouts would push that to 365.
Preferred stock has become a crucial funding tool for Strategy's Bitcoin buying. Earlier this year the company approved a framework that allows up to $1.25 billion in Bitcoin sales to help cover its preferred obligations.
Strategy held 846,000 Bitcoin at an average purchase price of $75,416 as of Sept. 20, according to its latest 8-K filing with the SEC. In the week of Sept. 14 to Sept. 20, it also repurchased about $174 million of STRC stock.
