Strategy asks shareholders to approve daily preferred stock dividends

Strategy’s board has approved moving all four of its perpetual preferred stocks to daily dividends, and it now needs common stockholders to sign off at a virtual special meeting on October 28, 2026. The proposal, first reported by Cointelegraph and disclosed in an 8-K filing, covers STRC, STRF, STRK and STRD.

If approved, every calendar day, including weekends and holidays, becomes a dividend record date, with any declared dividend paid on the next business day. The filing says the amendments do not change “the total amount of regular dividends, dividend rates, or overall dividend payment obligations.” The same cash goes out, just in many more pieces.

• Stockholders of record on September 25 vote on October 28. Preferred holders do not vote
• STRC switches first, with the first daily payment on November 2, 2026, for the November 1 record date
• STRF, STRK and STRD follow, with the first daily payment on January 4, 2027, covering the January 1 to 3 record dates

• 12% current variable annual rate on STRC
• 10% / 8% / 10% fixed rates on STRF, STRK and STRD, all unchanged
• 846,000 BTC held by Strategy, the largest corporate treasury
• Oct 28 special meeting date

Why Strategy wants daily payouts

Management gave three reasons: supporting price stability and liquidity, cutting the lag before investors can reinvest their income, and making the preferreds more competitive so Strategy can keep raising capital with them. Executive Chairman Michael Saylor summed it up as supporting “price stability, liquidity, and demand” with “economics unchanged,” per Bitcoin Magazine.

The price-stability point is the important one. Under a monthly or quarterly schedule, a preferred’s price tends to build up accrued value and then drop on the ex-dividend date, and traders can time their entries and exits around that date. When income arrives every day, the drop nearly disappears and the security should trade closer to its stated value. For STRC, whose variable rate Strategy adjusts to keep it trading near its $100 stated amount, that matters.

STRC’s rough summer

STRC has already been through two changes to how often it pays. It started on a monthly schedule and moved to semi-monthly in June, The Block reports. That same month it fell as low as $71.25.

CEO Phong Le blamed the fall on leverage the company had not expected. Investors borrowed against bitcoin at lower rates to earn STRC’s higher dividend, and the trade came apart. “We did not expect the amount of leverage that came into the system,” Le said. Strategy then approved a $1 billion repurchase program and doubled it to $2 billion in September. STRC closed at $98.31 on September 25, back near its stated value.

Strive got there first

Strategy would not be the first to do this. In June 2026, Strive became the first public company to pay daily dividends, on its SATA preferred, which carries a 13% annual rate and pays every business day. Strive holds 26,355 BTC. Strategy has four series and a far larger investor base. If stockholders approve, daily income moves from one company’s experiment toward a standard for the category Strategy calls digital credit.

Where the money comes from

The daily schedule does not change how the dividends are paid for. Strategy covers them with stock issuance, a dollar reserve and, if needed, bitcoin. It has outlined a program that could sell bitcoin to raise up to $1.25 billion for dollar reserves, preferred dividends and buybacks, and it resumed buying in mid-September, adding 950 BTC for $75.7 million. MSTR common is down roughly 50% over the past year, so how well the preferreds perform now affects how cheaply Strategy can raise money.

The BlockWest read. Daily dividends are a plumbing change, but plumbing is what institutional buyers look at. Removing the ex-dividend drop makes STRC look more like a cash-management product and less like a trading vehicle, which helps Strategy compete for yield money against money market funds and short-duration credit. The risk underneath does not change. Paying out income more often does nothing to fund the dividends, and June showed how fast leveraged buyers can pull out.

Watch the October 28 vote, whether STRC holds near $100 once daily payments start on November 2, whether issuance of the fixed-rate series picks up ahead of the January switch, and whether other bitcoin treasury companies with preferreds follow Strive and Strategy.

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