Strategy Inc wants to pay some of its investors every single day. On October 16, 2026, the company said in an SEC 8-K filing that it would conditionally declare daily cash dividends on its Variable Rate Series A Perpetual Stretch Preferred Stock, better known by its ticker, STRC.
The total for November comes to $1.00 per share, which works out to a 12% annualized rate. The catch: none of it happens unless common stockholders sign off first.
What Strategy is proposing for STRC
The daily dividend plan rests on two conditions. First, common stockholders must approve an amendment that allows “daily dividends” at a special meeting set for October 28, 2026, at 10:00 a.m.
Second, the amended certificate has to be filed in time, by November 1. If both boxes get checked, Strategy expects the first daily payment to land on November 2, 2026.
The total payout for November does not change under either scenario. Right now, STRC pays semi-monthly dividends of $0.50 per share, which adds up to the same $1.00 for the month.
If the amendment passes, those semi-monthly payments will be suspended and replaced by the daily structure. If it fails, the semi-monthly schedule simply keeps running.
The 12% rate itself is not new. It has held steady since mid-2026, and the company frames that consistency as part of an effort to get STRC trading stably around its $100 par value before it considers any changes to the rate.
That goal matters because STRC has spent months below that mark. The shares have traded under $100 par since May 2026 and hit a low of $71 in June.
How STRC got here
Daily dividends are the latest step in a steady compression of STRC’s payout schedule. The stock originally paid monthly before moving to semi-monthly payments in mid-2026, a change aimed at improving liquidity and trading efficiency through more regular distributions.
The groundwork for the daily move came in a preliminary proxy filed on September 25, 2026. That document asked shareholders to back daily accruals not only for STRC but for three other preferred stock series as well.
The bigger context is Strategy’s identity as the largest corporate holder of Bitcoin. The company, formerly known as MicroStrategy, uses instruments like STRC to raise capital for Bitcoin purchases, while avoiding significant dilution of its common stock.
There is also a tax wrinkle. The dividends, if declared, are expected to be treated as non-taxable returns of capital for shareholders, up to their tax basis.
For holders, that means the payments may reduce their cost basis rather than show up as taxable income right away, at least until the basis runs out.
What this means for STRC holders and Strategy
The amendment needs approval from common stockholders, not just preferred holders, at the October 28 meeting. Even with a yes vote, the amended certificate must be filed by November 1 for the daily schedule to kick in on time, leaving a short window between the meeting and the first payment.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.