Strategy shareholders approve daily dividends for four preferred stocks

Strategy, the largest publicly traded corporate Bitcoin holder, has secured shareholder approval for a significant change to its dividend structure. According to preliminary results from a special meeting held on Wednesday, 99.3% of votes cast were in favor of an amendment that allows the company’s four preferred securities to accrue dividends on a daily basis. Executive Chairman Michael Saylor confirmed the outcome, noting that the move is designed to support liquidity and price stability for these instruments.

New Payment Schedule and Mechanics

The approved amendment covers Strategy’s STRF, STRC, STRK, and STRD preferred stocks. Under the new rules, every calendar day will serve as a record date, with payments made on the next business day. This shifts the previous semi-monthly or quarterly schedules to a daily accrual system, although the annual dividend rates remain unchanged. Cointelegraph reported that the change is intended to shorten the gap between when investors earn dividends and when they receive the cash.

For STRC, the transition begins first, with a record date of November 1 and a payment date of November 2. The other three securities, STRF, STRK, and STRD, will switch over later, with their first record date set for January 1, 2027, and payments on January 4. The company noted that the implementation of these changes still depends on the filing of amended terms for each specific stock.

Handling Weekends and Holidays

Because U.S. markets are closed on weekends and holidays, dividends with record dates on non-trading days will not be paid separately. According to an SEC filing cited by Decrypt, the Depository Trust Company will treat weekend or holiday record dates as falling on the previous business day. Consequently, dividends for Friday, Saturday, and Sunday would be bundled together and paid on the following Monday. This settlement mechanism ensures that investors who sell shares on a Friday would still receive the accumulated dividends for the weekend, while those who buy on that day would not.

Context and Market Reaction

Strategy proposed the change last month, stating it would help dampen volatility in its preferred shares. CoinGape noted that this follows a recent effort to keep STRC trading near its $100 par value, which includes a variable dividend rate currently set at 12%. Recently, Strategy paused its Bitcoin purchases for the first time since mid-September to spend approximately $205 million repurchasing STRC shares. During that period, the company’s Bitcoin holdings remained unchanged at 848,517 BTC. The approval comes as Strategy also faces potential removal from MSCI indexes due to its asset-heavy balance sheet, with a decision expected in November.