Strategy (MSTR) Proposes Daily Dividend Payments for STRC Preferred Stock

Key Takeaways

Table of Contents

Strategy has put forward a shareholder proposal to implement daily dividend payments on four preferred stock classes: STRF, STRC, STRK, and STRD.
The proposal modifies only the payment schedule—annual dividend rates and total payout amounts remain unchanged.
A virtual shareholder meeting scheduled for Oct. 28 will determine whether the plan moves forward.
STRC shares have consistently traded beneath their $100 par value since May, hitting a low of $71 in June.
CEO Phong Le attributed the decline to unanticipated leveraged trading activity in STRC.

Strategy is proposing a significant shift in how it compensates shareholders: daily dividends across all four of its U.S.-traded preferred stock offerings. The bitcoin treasury firm’s common stock, MSTR, finished Friday’s session at $158.61, trading near $158 with a daily decline of 2.15%.

Strategy Inc, MSTR

The initiative encompasses STRF, STRC, STRK, and STRD preferred shares. If implemented, each calendar day would serve as a record date for dividends, with distributions arriving on the following business day.

The proposal doesn’t alter dividend percentages or aggregate payment values—it exclusively addresses distribution frequency. Investors will cast their ballots on the measure during an online special meeting scheduled for Oct. 28.

Strategy is proposing daily dividends on $STRF, $STRC, $STRK, and $STRD, accruing every calendar day, including weekends and holidays, and paid the next business day, with economics unchanged. The proposed changes aim to support price stability, liquidity, and demand. pic.twitter.com/N0wkXzi1gl

— Michael Saylor (@saylor) September 25, 2026

Implementation would begin with STRC. Upon approval, the initial daily dividend distribution for STRC would occur Nov. 2. The remaining three preferred stocks—STRF, STRK, and STRD—would transition in January, with inaugural daily payments anticipated on Jan. 4.

The STRC Trading Challenge

STRC has faced significant headwinds throughout the year. Despite offering a 12% annual dividend yield, the security has failed to return to its $100 stated value since spring.

During June’s bitcoin market downturn, STRC hit a low of $71.25. While it has climbed back to approximately $98.65, closing the final distance to $100 has proven challenging.

Strategy CEO Phong Le discussed the price decline during an appearance on Natalie Brunell’s Coin Stories podcast recently. He revealed that leveraged positions in STRC exceeded the company’s projections.

Market participants had been borrowing funds against bitcoin holdings at favorable rates to purchase STRC, capturing the yield differential. When bitcoin prices tumbled, these investors faced margin calls, forcing liquidation of STRC positions or additional collateral requirements.

“We did not expect the amount of leverage that came into the system,” Le said. “And so that’s a lesson learned, next time around.”

Replicating Strive’s Strategy

Strategy isn’t pioneering this approach. Strive implemented daily dividends in May for its SATA preferred shares, establishing itself as the initial publicly-traded company to distribute dividends on a daily basis.

Strive’s SATA distributes payments each business day at a 13% annualized rate and has maintained trading levels closer to $100 compared to STRC. Strategy’s proposal introduces a slight variation: it designates every calendar day—including weekends and holidays—as a record date, not solely business days.

Strive maintains a bitcoin treasury of 26,355 BTC. Strategy’s holdings dwarf that figure: 846,000 BTC, purchased for $63.80 billion at an average cost basis of $75,416 per bitcoin.

Strategy has simultaneously executed a share repurchase program targeting its preferred stocks to provide price support. The company has deployed approximately $1 billion of a $2 billion authorized buyback, including $174 million in STRC repurchases during the week concluding Sept. 20.

Le indicated the company aims to strengthen its cash reserves while maintaining its commitment to buying back STRC whenever it trades under $100. He emphasized the importance of attracting more institutional, long-term investors to the shareholder base.

Bitcoin was trading around $83,600 on Friday. The modifications to Strategy’s preferred stock terms would become operative following official filing with Delaware state authorities.

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