Michael Saylor’s bitcoin treasury company Strategy has announced plans to begin paying daily cash dividends on its STRC preferred shares starting Nov. 2, pending shareholder approval of changes to its dividend structure. The company also intends to maintain STRC’s 12% annual dividend rate as it seeks to keep the stock trading near $100 per share.
Key Takeaways
- Strategy plans to begin daily STRC dividends on Nov. 2, totaling $1 per share for November.
- The plan requires approval at an Oct. 28 vote and completion of related amendments.
- Strategy intends to maintain STRC’s 12% annual rate until shares consistently trade near $100.
Strategy Prepares for Daily Dividends in November
Strategy Inc. (Nasdaq: MSTR) disclosed the plans in an Oct. 16 filing with the Securities and Exchange Commission (SEC), detailing a proposed payment schedule that would distribute $1 per STRC share during November through dividends associated with each calendar day.
Under the proposed arrangement, shareholders would receive daily dividends of either $0.03 or $0.04 per share, with payments made on the business day following each record date. Dividends would accrue on weekends and holidays, although payments for multiple days could be combined when banks are closed.
The first payment is scheduled for Nov. 2, with the final November dividend payable Dec. 1. The company’s board declared the November payments on Oct. 15, subject to the proposed changes receiving shareholder approval.
Strategy—which currently holds about $69 billion worth of bitcoin—has scheduled a special shareholder meeting for Oct. 28 to vote on amendments allowing daily dividend record dates for its preferred shares. Approval must occur by Oct. 31, and the amended STRC governing documents must become effective by Nov. 1 for the new schedule to take effect.
If those conditions are not met, then Strategy will retain its existing dividend arrangement, including a previously declared payment scheduled for Nov. 15. The company said the daily payments would replace that dividend rather than supplement it.
The filing also confirmed that STRC’s annual dividend rate will remain at 12% for November if the changes are approved. Management intends to recommend maintaining that rate until the preferred shares demonstrate sustained, healthy trading near $100.
STRC Makes a Comeback
STRC was recently trading just above $99 per share after touching a recent high of $99.94 on Wednesday—the highest price seen since May, also the last month that shares touched $100.
Officially known as Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, STRC is a $100-par security with no maturity date. The company markets it as a digital credit product, offering investors income exposure through a preferred stock tied to Strategy’s broader bitcoin treasury business.
The proposed daily dividend schedule marks another acceleration in Strategy’s payment structure. STRC shifted from monthly to twice-monthly dividends earlier this year, and the company announced plans in September to move toward daily payments across four preferred stock offerings.
The broader proposal also covers STRF, STRK and STRD, which currently pay declared dividends quarterly. Daily record dates for those securities are expected to begin Jan. 1, 2027, subject to the necessary approvals.
Strategy has argued that more frequent dividends could reduce delays between payments and reinvestment, improve liquidity, and help stabilize preferred share prices. The changes are not intended to increase the company’s total regular dividend obligations.
Strategy’s STRC Buys Raise Questions
The initiative comes as Strategy has aggressively repurchased STRC shares to support their market price. As previously reported by Bitcoin.com News, Strategy spent approximately $368.7 million repurchasing STRC shares between Sept. 28 and Oct. 11, compared with about $50.2 million spent purchasing bitcoin during the same period.
Strategy’s repurchases have helped push the shares toward their $100 benchmark, although the company’s substantial buying activity has also raised questions about the sustainability of that support.
The new dividend structure could provide another mechanism for encouraging demand by making STRC more attractive to income-focused investors.
Strategy also said it expects the November daily dividends, if paid, to be treated as nontaxable returns of capital for U.S. federal income tax purposes, up to each shareholder’s tax basis in the shares.
Whether the daily payment system begins next month will ultimately depend on the outcome of the Oct. 28 shareholder vote and the timely completion of the required corporate amendments.