Strategy is seeking shareholder approval to transition its four preferred stocks, including STRC, to a daily dividend payment schedule. The company board approved the proposal, which maintains existing dividend rates and total payout amounts. Shareholders will vote on the amendments during a virtual special meeting scheduled for October 28.
If the proposal passes, every calendar day will serve as a dividend record date, with payments issued on the following business day. The STRC stock is slated to begin this schedule on November 2, while STRF, STRK, and STRD are expected to follow on January 4. The changes require filing updated certificates in Delaware to take effect.
The initiative follows a similar move by Strive, which transitioned its SATA preferred stock to daily dividends in June. Strive currently holds 26,355 Bitcoin, whereas Strategy reports a treasury of 846,000 BTC. Strategy aims to stabilize its STRC stock, which currently carries a 12% variable annual dividend rate, near its 100 USD stated value.
The STRC stock experienced volatility earlier this year, dropping to an intraday low of 71.25 USD on June 26. Strategy intends to prevent future unwinds by maintaining US dollar reserves and implementing a repurchase policy for shares trading below the 100 USD mark. The company is focused on attracting long-term institutional investors.
