The bitcoin treasury company is asking common shareholders to approve daily record dates on all four of its U.S. preferred stocks, as its variable-rate STRC trades below its $100 target.
Strategy has found another lever to pull on the securities that fund its bitcoin purchases. This one changes when investors get paid, not how much.
The company said in a securities filing on Friday that its board had approved a proposal to amend the terms of its four U.S.-listed preferred stocks, STRF, STRC, STRK and STRD, so that every calendar day becomes a dividend record date, with payment the next business day. Dividend rates and total amounts would not change. STRF and STRD pay 10%, STRK 8%, and STRC a variable rate.
Shareholders of record on Sept. 25 can vote at a virtual special meeting expected on Oct. 28. If the proposal passes, STRC would make its first daily payment on Nov. 2 for holders of record on Nov. 1, and the other three would begin daily payments on Jan. 4, 2027.
The STRC gap
STRC is designed to trade near its $100 par value, with the company adjusting its variable rate to keep it there. It traded near $98.41 in afternoon trading on Friday, up about 0.1%. STRF was near $103.75.
This is the second change to STRC's payment schedule in about three months. In June, the company moved it from monthly to semi-monthly payments. Strategy has also been buying back preferred shares.
Daily payment does not raise the yield an investor earns over a year. What it changes is liquidity and convenience. An investor who buys or sells on any day receives the dividend for exactly the days held, which could make the securities more attractive to buyers who treat them like cash alternatives. Michael Saylor, the company's executive chairman, has described the aim as price stability, liquidity and demand.
The vote
The preferred securities are central to how Strategy raises money without issuing as much common stock. If demand for them weakens, the company has fewer ways to fund bitcoin purchases on favorable terms.
The decision on the amendment sits with holders of the common stock. Strategy expects to file its definitive proxy around Oct. 5, which will lay out the voting requirements in full. STRC's price between now and the Oct. 28 meeting will show whether the market expects daily payments to close the gap to $100. A return to par after the change would suggest that payment frequency was a barrier for some buyers. A gap that persists would point to demand for Strategy's funding paper as the constraint.