Strategy Investors Greenlight Daily Dividend Payouts for Four Preferred Stocks

Strategy's shareholders have given the nod to the Daily Dividends amendment, as announced by the company on Wednesday. Early tallies indicate that 99.3% of the votes cast supported the change, per Executive Chairman Michael Saylor.

The amendment enables STRF, STRC, STRK, and STRD to accumulate dividends on a daily basis, covering weekends and holidays as well.

The initiative was introduced on September 25, when the firm called on holders to participate in a special meeting scheduled for October 28. Strategy described the adjustment as one that “would reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability.”

At the time, Strategy noted that they “believe these enhancements can also benefit our common stockholders by increasing the attractiveness and utility of our Digital Credit instruments, supporting our ability to access preferred equity capital efficiently and expanding the capital markets toolkit we use to execute our Bitcoin Treasury strategy.”

Under the new framework, dividends build up daily but are distributed on the following business day. Strategy has indicated that scheduled dividend rates and total dividend obligations are not affected. The firm argues the change could aid common stockholders by improving the usability and funding flexibility of its Digital Credit offerings.

The start date hinges on board approval. Should the board sign off and the necessary filings be completed, the initial STRC record and payment dates would land on November 1 and 2, 2026. For STRF, STRK, and STRD, the first record and payment dates would be January 1 and 4, 2027. These dates are also conditional on operational preparedness.

STRC carries a variable rate that the company may adjust at its discretion. For the month ending June 30, 2026, the rate was 11.50%, as per Strategy’s quarterly report. In June, shareholders approved a shift for STRC to semi-monthly payments, and the current amendment extends that approach.

Essentially, STRC is structured to enable Strategy to raise capital from investors through a preferred stock offering aiming at a stable $100 price with a variable dividend yield, with proceeds used to buy Bitcoin continuously irrespective of short-term price changes. This setup could serve as a global dollar-cost-averaging mechanism for Bitcoin.

Final vote certification is expected in a company filing. Board action remains the last step before any new payout schedule takes effect.

Strategy’s bitcoin moves this year

The vote lands as bitcoin slipped into a mild bear phase. Strategy curtailed its bitcoin acquisitions this year and offloaded some holdings to cover preferred dividends, interest payments, and repurchases.

The company’s common stock, MSTR, has fallen nearly 50% over the last twelve months, despite a rise of close to 1,000% since Strategy began its bitcoin accumulation in 2020.

Earlier this week, Strategy announced a pause in bitcoin purchases for the previous week, keeping its stash at 848,517 BTC, obtained for $64.02 billion at an average price of $75,446 per coin.

The firm spent $204.9 million to repurchase STRC preferred stock while keeping a $4.83 billion cash reserve.

Strive, another bitcoin-treasury company, distributes cash dividends on its Variable Rate Series A Perpetual Preferred Stock (SATA) every business day. This arrangement began on June 16, after a transition from monthly payments.