Strategy has filed a request with the U.S. Securities and Exchange Commission to let shareholders decide on converting the dividend schedule of its four preferred securities – STRC, STRF, STRK and STRD – to a daily model. The board gave its consent on Thursday, and a virtual special meeting is set for Oct. 28 where investors can cast their votes.
If the amendment passes, each calendar day will become a record date, and the corresponding dividend will be paid on the next business day. The first series, STRC, would begin this routine on Nov. 2, while the remaining three would start on Jan. 4, 2025.
How the plan differs from Strive’s approach
Earlier this year, fellow Bitcoin-focused public company Strive altered the payout cadence of its SATA preferred stock to a business-day schedule, marking the first instance of daily dividends in the sector. Strive’s change took effect on June 16 and offered a 13% annualized yield after the company cleared its debt in Q1.
Strategy’s proposal expands the concept by using every calendar day as a record date, rather than limiting payouts to business days. This subtle distinction means that weekends and holidays will still trigger a record date, though the actual cash distribution will wait until the next trading day.
Background on Strategy’s Bitcoin treasury and recent price swings
Strategy holds roughly 846,000 BTC, dwarfing Strive’s 26,355 BTC, according to BitcoinTreasuries.NET. The firm’s “digital credit” model issues preferred securities that generate income from the company’s Bitcoin holdings.
The flagship STRC share has experienced notable volatility this year. In late June, the price fell below the $100 stated amount, reaching an intraday low of $71.25 on June 26. CEO Phong Le explained on the Coin Stories podcast that unexpected leverage inflows amplified the drop. Investors borrowed at lower rates to purchase STRC, hoping to capture the spread between borrowing costs and the dividend yield. When Bitcoin’s price slipped, those borrowers faced margin calls, prompting either additional collateral or forced sales of STRC.
Le said the episode taught the company a lesson about managing leverage exposure. To mitigate future unwind risk, Strategy plans to maintain a robust U.S. dollar reserve and retain a policy that permits repurchasing STRC when it trades below the $100 target. The firm also hopes the daily dividend structure will attract longer-term holders, especially institutional investors. Since the June trough, STRC has recovered to around $98.41, close to the company’s stated range of $99-$100, and continues to carry a variable annual dividend rate of approximately 12%.
Why it matters
Adopting a daily dividend framework could set a new standard for publicly traded Bitcoin treasury companies, offering investors more frequent income and potentially smoothing price volatility. The move also signals Strategy’s intent to refine its capital structure, limit leverage-related shocks, and position its securities as attractive, stable assets for institutional portfolios. The upcoming shareholder vote will determine whether the company proceeds with this novel payout schedule, potentially influencing dividend practices across the emerging crypto-linked equity market.
