Bitcoin Titan Strategy Set to Pay Daily Dividends on STRC After Shareholder Vote
Key Takeaways
- Strategy shareholders approved daily dividends for STRF, STRC, STRK, and STRD preferred shares, with 99.3% of votes cast in favor.
- Daily dividends begin Nov. 1 for STRC, with the other three preferred stocks transitioning Jan. 1, 2027, subject to final implementation.
- STRC will maintain a 12% annualized dividend rate in November, with approximately $1 per share distributed through daily payments, including bundled weekend and holiday payouts.
Strategy Set for Daily Dividends
Strategy (Nasdaq: MSTR) shareholders voted overwhelmingly Wednesday to approve amendments enabling daily dividend accruals for the company’s STRF, STRC, STRK, and STRD preferred shares, according to an Oct. 28 filing with the Securities and Exchange Commission (SEC).
The vote took place during a special shareholder meeting, with Strategy Chairman Michael Saylor announcing the preliminary results on X.
“MSTR shareholders have approved the daily dividends amendment. Preliminary results show 99.3% of votes cast were in favor,” Saylor wrote. “The amendment enables STRF, STRC, STRK, and STRD to accrue dividends every calendar day. Thank you to all who voted.”
The approval paves the way for Strategy to begin its new daily dividend schedule for STRC, also known as Stretch, on Nov. 1, with the first cash payment expected Nov. 2. The remaining three preferred shares—STRF (Strife), STRK (Strike), and STRD (Stride)—are scheduled to transition to daily dividends beginning Jan. 1, 2027.
The changes remain subject to the filing and effectiveness of amended governing documents for each preferred stock offering.
Under the new structure, Strategy’s preferred shares will have dividend record dates every calendar day, including weekends and banking holidays. However, payments associated with weekends and holidays may be combined and distributed on the following business day.
The SEC filing explains that dividends associated with multiple consecutive non-trading days may share a single record date and ex-dividend date under Nasdaq and Depository Trust Company rules.
For example, dividends scheduled for Friday, Nov. 6, Saturday, Nov. 7, and Sunday, Nov. 8 would all be paid Monday, Nov. 9. Investors purchasing shares on Nov. 6 would not be entitled to those three dividends, while shareholders selling on that date would still receive them, according to Strategy’s expectations under the current settlement framework.
STRC Rises Following Announcement
The shareholder approval follows an Oct. 16 announcement detailing Strategy’s plans to transition STRC from twice-monthly to daily payments.
As previously reported by Bitcoin.com News, Strategy expects to distribute $1 per STRC share during November, through daily payments of approximately $0.03 or $0.04 per share. The company has also maintained STRC’s annualized dividend rate at 12% for November, with management intending to recommend keeping that rate until shares demonstrate sustained trading near their $100 benchmark.
The price of STRC rose Wednesday, recently trading at $99.78—its highest price in nearly two weeks. STRC hasn’t traded at or above its $100 par level since May.
STRC is a perpetual preferred security with no maturity date, marketed by Strategy as a digital credit product that offers income-focused investors exposure to the company’s broader bitcoin treasury business. The company holds 848,517 BTC, valued above $68 billion.
Strategy has increasingly focused on supporting STRC’s market price through share repurchases. Between Sept. 28 and Oct. 11, the company spent approximately $368.7 million buying back STRC shares, compared with about $50.2 million on additional bitcoin purchases during the same period.
The company has argued that more frequent dividend payments could improve liquidity, reduce delays between payments and reinvestment, and help stabilize preferred stock prices without increasing its total regular dividend obligations.
Strategy also previously indicated that it expects November’s STRC dividends to be treated as nontaxable returns of capital for U.S. federal income tax purposes, up to each shareholder’s tax basis.
Wednesday’s vote removes a key obstacle to the rollout, although the company cautioned in its SEC filing that the actual treatment of dividends may vary depending on trading venues, clearing arrangements, and individual brokerage policies.
