Strategy has declared daily dividends on its STRC preferred stock for every day of November, pending a shareholder vote. STRC traded at $99.32 on Friday, just under its $100 par value. The an
Strategy has declared daily dividends on its STRC preferred stock for every day of November, pending a shareholder vote. STRC traded at $99.32 on Friday, just under its $100 par value. The annual rate stays at 12%, and the company wants steady trading near par before it lowers that rate.
The board declared cash dividends for each calendar day from November 1 to November 30, per an 8-K filed October 16. Payments begin November 2 and arrive on the business day after each record date. Weekends and holidays accrue like any other day.
The dividends are conditional. Common shareholders vote on the change at a special meeting on October 28, and an abstention counts as a vote against. The amendment must pass by October 31, and the new certificate of designations must take effect.
If either step fails, STRC keeps paying semi-monthly, including the November 15 dividend. Strategy expects the November payments to be taxed as a return of capital for U.S. holders, to the extent of a holder’s tax basis.
STRC launched with monthly dividends, and Strategy says the ex-dividend dates caused price swings. Shareholders approved a move to semi-monthly payments at the June 8 annual meeting. The company wants a higher frequency still, and Nasdaq rules on the lag between declaration and record dates were the main obstacle.
Daily accrual also shortens the wait for reinvestment. The same amendment would extend daily dividends to STRF, STRK and STRD from January 2027.
STRC is Strategy’s variable-rate perpetual preferred stock and a main tool for funding Bitcoin purchases. Strategy can only sell new shares near $100, so a discount shuts that channel. The price slid through the spring, and the company raised the dividend rate eight times.
In late May, Strategy sold 32 BTC to fund preferred dividends, its first sale since 2022. By June 26, STRC closed at $74.57 with an effective yield above 15%. It had fallen to around $70 earlier in the year.
On June 29, Strategy released its Digital Credit Capital Framework. The rate rose to 12% from 11.5%, and the board authorized Bitcoin sales of up to $1.25 billion for reserves, dividends and buybacks. It also approved separate $1 billion buyback programs for preferred and common stock. The USD reserve stood at $2.55 billion.
STRC closed at $83.67 that day, up 12.2%. The company also set a goal of holding the price between $99 and $100.
Strategy then sold Bitcoin on several occasions. One sale covered 1,638 BTC, and another covered 3,588 BTC for $216 million at roughly $60,000 per coin. The USD reserve later grew to $4 billion.
On July 27, Michael Saylor said Strategy would be a disciplined STRC buyer below $100, buying more at deeper discounts. STRC then traded in the $80s. Buybacks reached $139 million in late September and $176 million in the week ending October 4, when the program doubled to $2 billion.
Last week Strategy repurchased 1.93 million STRC shares for $192.4 million, at an average of $99.58. It bought 250 BTC for $21.5 million over the same period. Holdings now total 848,250 BTC, bought for about $64 billion at an average of $75,444.
Each retired share removes $12 of annual dividend cost. Retiring 3.7 million shares cut roughly $44.5 million from yearly obligations. Bitcoin buying has slowed sharply, with about $50 million spent on BTC against $369 million on STRC over two weeks.
Critics call this a reversal of Saylor’s July rule, which promised smaller purchases as the price neared par. Peter Schiff argues that Strategy cannot issue more STRC at par, and that selling would push the price back down. Daily dividends test whether demand can hold without constant buying.
Bitcoin trades near $80,000, close to Strategy’s cost basis, and fell under that level after a hot U.S. producer price report. A weak market would make the 12% obligation harder to cover, and Strategy has shown it will sell Bitcoin to meet it.
Index risk adds pressure. Cointelegraph reports that MSCI adopted exclusion rules that could remove Strategy, with changes possible at the November review. JPMorgan estimated $2.8 billion in passive outflows from an MSCI removal.
The October 28 vote decides whether daily payments begin. Strategy’s Monday filings will show whether buybacks slow now that STRC sits near par. Sustained trading at $100 would let the company issue STRC again and return to Bitcoin accumulation.
