Strategy Proposes Daily Dividend Accrual for Its Preferred Shares

Key Points

• Strategy has filed a preliminary proxy proposing that dividends on its four U.S. preferred shares—STRF, STRC, STRK and STRD—accrue each calendar day.
• Dividends would accumulate every day, including weekends and holidays, and be paid on the next business day.
• Shareholders will vote on October 28; STRC would begin the new schedule on November 1, with the other three classes starting on January 1.

Strategy, the Bitcoin treasury firm, announced that it intends to distribute dividends on its four U.S. preferred shares on a daily basis, including weekends and holidays, executive chairman Michael Saylor said on Thursday.

The proposal applies to STRF, STRC, STRK and STRD. Dividends would accumulate each calendar day and be paid on the next business day, leaving the economic terms unchanged. A preliminary proxy was filed on the same day, a definitive proxy is expected by October 5, and the shareholder vote is scheduled for October 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

STRC would adopt the new schedule first, with its initial record date set for November 1 and the first payment following on November 2. The remaining three classes would continue with the existing quarterly schedule, making their final payment on December 31 before transitioning to daily accruals on January 1.

At present STRC records dividends 24 times per year; under the new plan all four classes would accrue 365 times annually. For the three classes that currently pay quarterly, President and Chief Executive Phong Le noted that this represents roughly a ninety‑fold increase in payment frequency.

Frequent Payments Reduce Volatility

“Creating low volatility and high liquidity involves shortening the instrument’s duration and actively managing credit,” Saylor said. He added that “the more frequent the adjustments, the lower the instrument’s volatility,” and noted that “lower volatility makes it easier to enter and exit positions.”

Le observed that when STRC paid dividends monthly, its price tended to drop about 49 basis points the day before each payment; after the shift to semi‑monthly payments in June, that decline eased to roughly 36 basis points.

Strategy anticipates more stable month‑end valuations for fund managers, a convenient outlet for institutions’ idle cash, quicker reinvestment cycles, potential inclusion in low‑volatility indices, and improved collateral haircuts when the shares are used as security.

Le described the initiative as “the first global security offering calendar‑day dividend accruals.” He noted that, if approved, these four would be the only securities worldwide providing 365‑day accruals, joining a group of five securities that already pay daily dividends and together representing roughly $15 billion in market value. He added, “Digital credit and digital capital are designed to operate every day.”

Le pointed out that the previous shift to semi‑monthly payments received strong support, with 97.5 % of STRC holders and 99.9 % of common shareholders voting in favor in June. He also noted that Strategy has distributed approximately $255 million in STRC dividends to date.

The preferred shares play a core role in Strategy’s funding strategy. This month the firm acquired $139 million of STRC while pausing additional Bitcoin purchases, raised $2 billion by selling MSTR stock to build a dollar reserve, and maintains a framework that could allow it to liquidate up to $1.25 billion of Bitcoin to meet these obligations. Last week it added another $76 million in Bitcoin, bringing its holdings near the June peak.

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