MicroStrategy executive chairman Michael Saylor announced a proposal to transition dividend accruals for four preferred share classes—STRF, STRC, STRK, and STRD—to a 365-day calendar schedule. Under this plan, dividends would accrue daily, including weekends and holidays, and be paid on the following business day. The company filed a preliminary proxy on Thursday, with a definitive proxy scheduled for October 5 and a shareholder vote set for October 28.
The STRC ticker is slated to transition first, with a record date of November 1 and an initial payment on November 2. The remaining three securities will continue on their current quarterly schedules through the end of the year, switching to the new daily model on January 1. Currently, STRC utilizes 24 record dates annually, and the company expects the shift to increase payment frequency by 90 times for the quarterly-paying assets.
Company leadership, including CEO Phong Le, stated that the change aims to reduce volatility and enhance liquidity by shortening instrument duration. Data provided by the firm indicates that price drops before dividend dates narrowed from 49 basis points to roughly 36 basis points following a shift to semi-monthly payments in June. MicroStrategy has paid $255 million in STRC dividends since that transition.
MicroStrategy views these preferred shares as a core funding mechanism. The company recently purchased $139 million of STRC while pausing Bitcoin acquisitions, and it maintains a framework allowing for the sale of up to $1.25 billion in Bitcoin to meet obligations. Additionally, the firm raised $2 billion through MSTR stock sales to establish a dollar reserve and recently added $76 million in Bitcoin to its holdings.
