Strategy, the largest corporate holder of bitcoin, has asked shareholders to approve daily dividend payments on its four US-listed preferred stocks. The proposal, filed with the SEC on September 25, would put a dividend record date on every calendar day, weekends and holidays included, with payment following on the next business day.
The change targets STRC, the company’s variable-rate preferred, which carries a 12% annual rate and a $100 stated value. STRC has traded below par since May and touched about $71 during June’s bitcoin sell-off. It closed September 24 at $98.31. Management wants the price pinned to $100, and it sees payment frequency as the main tool to get there.
The vote is set for October 28 at a virtual special meeting. Only common shareholders of record as of September 25 can vote, and preferred holders have no say. Michael Saylor controls 32.9% of voting power through Class B shares that carry ten votes each, so passage looks close to certain. Voting opens around October 5, when the company plans to file its definitive proxy.
How the daily schedule works
STRC currently pays twice a month, which means 24 record dates a year. Daily accrual takes that to 365, a roughly fifteen-fold increase. For STRF, STRK and STRD, which pay quarterly, the jump is closer to ninety-fold. Rates stay unchanged: 10% on STRF, 8% on STRK, 10% on STRD and 12% variable on STRC. The euro-denominated STRE series is not part of the proposal.
The math splits the same money into smaller checks. At 12% on a $100 stated amount, a STRC share earns about three to four cents a day, rounded down to the cent, with the 15th and month-end payments carrying a true-up so nothing is lost. STRC’s first daily record date would be November 1, with the first payment on November 2. The other three series keep their quarterly schedule through December, then switch on January 1, 2027, with first daily payments on January 4.
STRC listed in July 2025 with monthly variable coupons. Shareholders approved a move to twice-monthly payments in June, with 99.9% of votes cast in favor. Saylor described daily accrual as version five of the Stretch design, which has moved through an at-the-market shelf and dollar reserves along the way. The amended terms would also let the company name extra business days, which could eventually allow payments seven days a week.
Why the change
Chief executive Phong Le presented the plan as a way to reduce price swings and support demand. The company’s pitch says daily dividends cut reinvestment lag and improve liquidity. Saylor put the logic in plainer terms in a shareholder letter.
“The way that you create low volatility and high liquidity is to shorten the duration of the instrument and to actively manage the credit,” Saylor said. “The higher the frequency of those adjustments, the lower the volatility of the instrument.”
Buybacks are the other lever. Strategy has spent $635.2 million repurchasing STRC at an average price of $97.48 as of September 1, under a $2 billion program it doubled earlier this month. It bought about $174 million of STRC in the week ended September 20 alone and has committed not to issue new STRC below par. The company said in July it would be a regular and disciplined buyer below $100 and would keep the 12% rate until the stock shows sustained, healthy trading near par.
Ex-dividend data supports the approach. Median price declines on record dates narrowed from 0.49% under monthly payments to 0.36% after the June move to semi-monthly. Daily accrual is the next step in the same direction. Le called the result, if approved, the first global security with calendar-day accruals and dividends, and noted that only five securities worldwide pay daily dividends today, a combined market of about $15 billion that would become 93% Strategy’s.
What holders actually get
For STRC holders the economics do not change. The same 12% annual rate, divided differently, lands in the same place over a year. What changes is the price behavior around record dates. Each dividend payment removes accrued value from the share price, so fewer, larger payments create larger dips. Spreading the same accrual across 365 dates flattens those dips, which is the point of the exercise.
The preferreds matter because they fund the bitcoin treasury. Strategy has built more than $9 billion of preferred obligations into what it calls the Stretch platform, with over $100 million of daily trading and a 3.8-year dollar duration. Dividends on those instruments support bitcoin purchases, so keeping the preferreds trading near par protects the acquisition engine behind the common stock. Saylor has said the bitcoin held by the company is enough to cover decades of dividend payments.
The pitch also leans on competition for capital. Strategy competes with money-market funds, bond ladders and, increasingly, yield-bearing stablecoin products for the same fixed-income buyers. A security that pays daily and trades within a dollar of par is easier to sell to that audience than one that swings around record dates. The company’s solicitation page says the design would create a competitive advantage and that increased demand could drive what it calls Amplification and Bitcoin Per Share, its measures of accretion for common holders.
Risks remain. The structure depends on the company maintaining the 12% rate, which costs real cash on a $9.3 billion notional base, and on continued buyback support. If bitcoin falls hard again, pressure on the whole stack returns, as June showed when STRC hit $71. Daily payments would not change that math, only soften the price mechanics around it.
Bitcoin traded near $83,600 on Friday and MSTR near $158. If shareholders approve on October 28, STRC holders start collecting daily payments in November. The company says nothing changes in total cost. The check just arrives 365 times a year instead of 24.