MicroStrategy has filed a shareholder proposal to move dividend payments for its four U.S.-listed preferred securities—STRF, STRC, STRK and STRD—to a daily accrual model. Under the plan, dividends would accumulate every calendar day, weekends and holidays included, and be disbursed on the following business day. The company has set an October 28 vote, and, if approved, the first daily dividend would be issued on November 2.
Financial context and share repurchases
The initiative does not alter the underlying dividend rates or the total regular payout amounts. Instead, it merely accelerates the timing of cash flow to investors. Strategy’s annual dividend rate for STRC sits at 12 percent, while its other preferred shares maintain comparable yields. Since June, STRC’s payment cadence shifted from monthly to bi-monthly, a change that has not succeeded in restoring the stock to its $100 stated value.
In parallel, MicroStrategy continues a $2 billion share-repurchase program, having bought back about $1 billion of preferred stock to date. The latest week ending September 20 saw $174 million of STRC repurchased, a move intended to support the market price.
Impact on STRC price and investor appeal
STRC has lingered below its target, trading around $98.65 after dipping to $71 during Bitcoin’s June sell-off. By delivering dividends each day, the company hopes to make the security more attractive to income-focused investors, reducing the waiting period for cash and allowing more immediate reinvestment. Faster payouts could also smooth price volatility that typically clusters around traditional payment dates, potentially narrowing the gap between market price and the $100 stated value.
The proposal notes that the primary obstacle to STRC’s price recovery is competition from Strive’s ASST perpetual preferred SATA, which offers a 13 percent annual rate and has remained near the $100 mark.
Bitcoin holdings and broader market backdrop
MicroStrategy remains a major corporate holder of Bitcoin, with 846,000 BTC on its balance sheet, acquired for $63.8 billion at an average cost of $75,416 per coin. Bitcoin itself hovered near $83,600 at the time of reporting, providing a backdrop of strong crypto asset performance that underpins the firm’s overall financial strategy.
Why it matters
Switching to daily dividend accrual could improve liquidity for preferred-share investors and help align STRC’s market price with its stated value, a key metric for the company’s reputation among income investors. The move also reflects MicroStrategy’s broader effort to leverage its substantial Bitcoin holdings and active share-repurchase program to reinforce confidence in its capital-allocation decisions.
