Strategy Seeks Daily Dividends for STRF, STRC, STRK and STRD

Strategy is seeking shareholder approval to move STRF, STRC, STRK and STRD to daily dividends, expanding a Digital Credit platform the company uses alongside its 846,000 BTC treasury.

Under the proposal, every calendar day would become a dividend record date, including weekends and holidays, with the associated payment made on the next business day. The change would increase payment frequency without altering the annual dividend rates or Strategy’s overall dividend obligations.

The four securities currently pay on different schedules. STRF, STRK and STRD pay quarterly, while STRC moved from monthly to semi-monthly dividends in June. Strategy’s current annual rates are 10% for STRF, 8% for STRK and 10% for STRD, while STRC carries a variable rate currently set at 12%.

STRC Could Move to Daily Payments in November

Strategy’s preliminary proxy schedules a virtual special meeting for October 28 at 10 a.m. ET. Common stockholders of record on September 25 are entitled to vote, while the preferred shares themselves do not carry voting rights on the proposal.

If approved, STRC would move first. November 1 would become its first record date under the daily schedule, with payment expected on November 2. STRF, STRK and STRD would retain their quarterly schedules through December before switching on January 1, 2027, with the first payments expected January 4.

Michael Saylor and CEO Phong Le said the higher frequency is intended to reduce reinvestment delays and improve liquidity, trading efficiency and price stability. Strategy’s investor materials also target less dividend-related price movement by reducing the amount of accrued income that builds between payment dates.

STRC already underwent one dividend-frequency change this year. Shareholders approved the move from monthly to semi-monthly payments in June, with 97.5% of STRC shares voted supporting the amendment. Strategy said it had paid $255 million in semi-monthly STRC dividends through the September 15 record date.

Strategy Keeps Buying Bitcoin and Repurchasing STRC

The proposal follows another round of capital deployment into both Bitcoin and Strategy’s preferred securities. The company spent $75.7 million on 950 BTC between September 14 and 20 while using another $174 million to repurchase 1.77 million STRC shares.

Those transactions lifted Strategy’s Bitcoin holdings to 846,000 BTC, acquired for $63.8 billion at an average price of $75,416. The company also held $5.04 billion in its USD Reserve and $1.05 billion of additional USD Cash as of September 20.

Strategy had already spent $176 million on STRC earlier in September as it sought to support trading closer to the security’s $100 stated amount.

The expansion comes as other corporate Bitcoin strategies move in the opposite direction. French chipmaker Sequans sold its final 314 BTC and ended its Bitcoin treasury strategy after using earlier sales to eliminate convertible debt.