Strategy sets Oct. 28 vote on daily dividends

Strategy has scheduled an Oct. 28 special shareholder meeting to seek approval for daily dividend payments on four U.S.-listed preferred securities.

Summary

• Strategy shareholders will vote October 28 on daily dividends for four U.S.-listed preferred stock classes.
• STRC could begin daily dividends November 2, while STRF, STRK and STRD follow January 4.
• Proposed amendments would not change dividend rates, total obligations, or core preferred shareholder protections materially.
• Only common stockholders of record September 25 can vote on proposals at Strategy’s special meeting.
• Strategy says daily payments could reduce reinvestment delays and improve liquidity, efficiency, and price stability.

According to Strategy’s preliminary proxy statement, the proposal covers STRF, STRC, STRK and STRD and would replace their current dividend schedules with daily record dates.

The virtual meeting will begin at 10 a.m. Eastern Time. Common shareholders who held eligible Strategy shares at the close of business on Sept. 25 are entitled to vote.

Preferred shareholders do not vote on the proposal through their STRF, STRC, STRK or STRD holdings. Strategy’s Class A common shares carry one vote each, while Class B shares carry 10 votes each.

Strategy proposes daily dividends on four preferred stocks

Under the proposed amendment, each calendar day would become a dividend record date. If the board declares the dividend, payment would follow on the next business day, including for amounts accrued during weekends and holidays, according to Strategy’s Sept. 24 SEC filing.

Strategy currently pays quarterly dividends on STRF, STRK and STRD. STRC already uses a semi-monthly schedule following a shareholder-approved change earlier this year.

The proposed amendment would not change the regular dividend rates on the four securities. Strategy said in its proxy materials that the change would not alter its overall dividend obligations or materially change existing preferred shareholder protections beyond payment frequency.

STRF carries a 10% fixed annual dividend rate, while STRK pays 8% and STRD pays 10%. STRC has a variable rate, which Strategy maintained at 12% for semi-monthly periods beginning after Sept. 16, according to a separate SEC filing.

Strategy said on its special meeting information page that daily payments could “reduce reinvestment lag” while improving liquidity, trading efficiency and price stability. The company presents those outcomes as expected benefits, not confirmed results.

STRC would move to daily payouts first

If shareholders approve the proposal and the amended certificates become effective, STRC would be the first security to move to the new schedule.

Strategy expects the first daily-schedule STRC payment on Nov. 2 for holders of record on Nov. 1, according to its SEC materials. Every calendar day after that would become another record date, with payment due on the next business day if declared.

STRC would continue using its existing semi-monthly system through October. Strategy expects a dividend tied to the Oct. 15 record date before the proposed daily framework takes effect.

The other three preferred securities would switch later. STRF, STRK and STRD would remain on their quarterly schedules through December, with their first daily-schedule payments expected Jan. 4, 2027, for holders of record on Jan. 1, Jan. 2 and Jan. 3.

Strategy states that every payment remains subject to declaration by its board or an authorized committee and to legally available funds. Shareholder approval by itself would not declare any future dividend.

STRC already moved to twice-monthly payments

The October proposal follows an earlier change to STRC’s payment schedule. Strategy shareholders approved semi-monthly STRC dividends at the company’s June 8 annual meeting, replacing the previous monthly schedule. Strategy later began using twice-monthly record dates.

STRC moved to record dates on the 15th and final day of each month after shareholders backed the amendment.

Before that vote, Strategy had presented similar arguments about shortening the period between earning a dividend and receiving cash. In earlier crypto.news coverage, the company said the semi-monthly structure could support reinvestment timing and trading liquidity.

Strategy’s STRC dividend history shows two payments for both July and August. Its September schedule lists $0.50 per share for the Sept. 15 record date and another $0.50 for Sept. 30 based on the current 12% annual rate.

For comparison, Strategy’s STRF dividend page lists a $2.50-per-share quarterly dividend for the third quarter. STRK and STRD have remained on quarterly schedules under their existing terms.

Common shareholders will decide the Oct. 28 proposal

Strategy’s preliminary proxy places two matters before shareholders. Proposal 1 covers the amended certificates needed to implement daily dividends. Proposal 2 would permit the company to adjourn the special meeting if more time is needed to collect votes for Proposal 1.

A majority of outstanding common-stock voting power must be represented for the meeting to have a quorum. Shareholders may vote for, against or abstain from each proposal. For Proposal 1, an abstention has the same effect as a vote against the amendment. Broker non-votes are expected to count against the proposal because Strategy does not expect either matter to qualify as routine.

Common stockholders can change previously submitted voting instructions through 11:59 p.m. Eastern Time on Oct. 27, subject to the procedures described in the proxy documents. Eligible shareholders can vote during the virtual meeting. Strategy said on its meeting information page that it expects to file its definitive proxy statement around Oct. 5, when voting is scheduled to open. The company described that date as an estimate.

The board has recommended that shareholders vote for the dividend amendment. Strategy says more frequent distributions could increase demand for its preferred securities and support its preferred-equity financing strategy, though those outcomes remain forward-looking company expectations. Strategy’s preferred securities have been examined as part of the financing structure used alongside its Bitcoin treasury operations.

If Proposal 1 passes, implementation would still require Strategy to file amended and restated certificates of designations and for those documents to become effective. STRC’s proposed first daily record date is Nov. 1, while STRF, STRK and STRD are scheduled to enter the new cadence from Jan. 1, 2027.