Strategy is asking shareholders to approve daily dividend payments across its four U.S.-listed preferred stocks, STRF, STRC, STRK and STRD.
How the daily payouts would work
Under the proposal, dividends would accrue every calendar day, including weekends and holidays, and be paid out on the next business day.
The change only affects the timing of payments, leaving dividend rates and total regular dividend amounts where they are.
Shareholders are set to vote on Oct. 28, and if the measure passes, STRC’s first daily dividend would be paid on Nov. 2.
STRC still trading below par
The move is aimed mainly at STRC, which already switched from monthly to bi-monthly payments in June.
Even so, the preferred stock has struggled to get back to its $100 stated value since May, and dropped as low as $71 during bitcoin’s selloff in June.
STRC currently carries a 12% annual dividend rate and trades around $98.65.
Strategy said the goal is to support a trading price close to $100, with daily payouts cutting the wait for income investors to receive and reinvest their dividends while smoothing out price swings around payment dates.
Competition from Strive’s SATA
Much of STRC’s weakness has been tied to Strive’s perpetual preferred SATA, which pays dividends every business day at a 13% annual rate and has continued to hold near $100.
Strategy has also spent roughly $1 billion buying back preferred shares under its $2 billion program, including $174 million of STRC in the week ended Sept. 20.
Strategy’s bitcoin position
As of Monday, Strategy holds 846,000 BTC, acquired for $63.80 billion at an average price of $75,416 per coin.
Bitcoin traded around $83,600 on Friday, while MSTR slipped 2.15% to about $158.
