Strategy shareholders have approved a proposal to introduce daily dividends across four classes of preferred stock, with the new schedule set to begin in November for STRC and January 2027 for the remaining securities.
Summary
- Strategy shareholders have approved amendments allowing daily dividends for four preferred stocks, STRC, STRF, STRK and STRD, following a special meeting held on October 28.
- STRC will adopt daily dividend record dates from November 1, 2026, while STRF, STRK and STRD are scheduled to follow on January 1, 2027.
- The new dividend schedule will cover weekends and market holidays, although payments may be grouped together depending on Nasdaq and DTC settlement arrangements.
- Strategy has continued repurchasing STRC shares, including $204.9 million in buybacks during the week ended October 25, while its Bitcoin holdings remained unchanged at 848,517 BTC.
According to an October 28 filing with the U.S. Securities and Exchange Commission, the company secured the required shareholder votes during a special meeting held earlier that day.
The approval covers Strategy’s Strife (STRF), Stretch (STRC), Strike (STRK), and Stride (STRD) preferred shares, allowing the company to replace their existing dividend schedules with daily record dates.
Shareholders voted on amendments to the certificates of designations governing each security. The preliminary results showed that the proposals received sufficient support from common shareholders eligible to vote as of September 25.
The decision follows September proposal to introduce daily dividends, which crypto.news previously reported was intended to shorten the time investors wait to receive income and allow them to reinvest payments sooner.
Under the approved framework, STRC will move to daily dividend record dates beginning November 1, while STRF, STRK, and STRD will follow on January 1, 2027.
Implementation remains subject to the filing and effectiveness of the amended certificates of designations.
Strategy daily dividends will cover weekends and holidays
One of the main changes under the new arrangement is that dividend record dates will apply to every calendar day, including weekends and holidays when traditional stock markets are closed.
However, the filing explains that investors will not necessarily receive separate payments every day because dividend processing will continue to follow the existing trading and settlement arrangements.
For shares cleared through the Depository Trust Company, any record date falling on a weekend or clearing holiday will be treated as occurring on the preceding business day when DTC is open.
Nasdaq will generally apply the same treatment to ex-dividend dates, which determine when shares begin trading without entitlement to a particular dividend.
As a result, several daily dividends may share the same record date and ex-dividend date, with the corresponding payments distributed together.
Strategy provided an example covering November 6 through November 8, which falls on a Friday, Saturday, and Sunday.
Under the new schedule, dividends associated with all three dates would share November 6 as their record date and ex-dividend date, with payments scheduled for Monday, November 9.
The company expects an investor purchasing shares on November 6 to miss all three dividends because of the T+1 settlement cycle. Someone selling shares that day would remain entitled to the three payments.
Dividend treatment could differ for securities traded outside Nasdaq or cleared through platforms other than DTC, particularly where weekend trading is available.
STRC will be the first preferred stock to adopt daily dividends
STRC has undergone several changes to its dividend structure this year as Strategy continues developing its preferred stock products.
In June, shareholders approved twice-monthly dividend payments, replacing the previous monthly arrangement with record dates on the 15th and final day of each month.
The latest approval will move STRC to daily record dates from November, while the company’s three other preferred securities retain their existing schedules until the end of December.
STRC currently carries a variable annualized dividend rate of 12%, while STRF and STRD carry stated annual rates of 10%. STRK has an 8% annual dividend rate.
The earlier shareholder proposal stated that changing payment frequency would not materially alter the total dividend obligations or the existing protections attached to the preferred shares.
Dividends remain subject to declaration by Strategy’s board or an authorized committee and the availability of legally permitted funds.
Strategy has previously said more frequent payments could help investors access their income sooner and improve trading conditions for its preferred securities.
How is Strategy managing its STRC shares?
The shareholder approval comes as Strategy has continued repurchasing STRC shares while managing its Bitcoin holdings and preferred stock obligations.
Earlier this week, the company disclosed that it had repurchased $204.9 million of STRC during the week ended October 25.
The transactions covered 2,068,459 shares, while Strategy reported no Bitcoin purchases or sales during the same period.
Its Bitcoin holdings remained at 848,517 BTC, acquired for a combined $64.02 billion, including fees and expenses.
Strategy funded the latest repurchases using its available dollar cash balance, which fell to $242.4 million. Its separate reserve for dividend payments and debt interest stood at approximately $4.83 billion.
The company had previously raised its preferred securities repurchase authorization to $3 billion on October 19.
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