Common holders backed amendments that let STRF, STRC, STRK and STRD pay for every calendar day, based on preliminary results. The variable-rate STRC goes first, and was trading just below its $100 par value.
Strategy's bitcoin purchases increasingly depend on income investors. On Wednesday it got approval to pay them every day.
The company said in a securities filing that, based on preliminary voting results at Wednesday's special meeting, common shareholders approved amended certificates of designations for its four perpetual preferred stocks: STRF, which pays 10%, STRK at 8%, STRD at 10%, and STRC, which pays a variable rate. The amendments permit dividends for every calendar day, including weekends and holidays. Executive Chairman Michael Saylor said 99.3% of votes cast were in favor.
What changes and what doesn't
The annual dividend rates do not change. What changes is the cadence. STRC, which currently pays twice a month, moves first: its first daily record date is Nov. 1, with payment on Nov. 2. STRF, STRK and STRD, which pay quarterly, begin daily dividends with a first record date of Jan. 1, 2027, and payment on Jan. 4. Both start dates are subject to the filing and effectiveness of the amended certificates, and dividends are still paid only when the board declares them.
Strategy says the aim is to shorten the lag before holders can reinvest, improve liquidity and support price stability.
Why STRC is the one that matters
STRC is the main instrument Strategy has been using to raise money for bitcoin. It is designed to trade near its $100 par value, with the rate adjusted to keep it there. When it trades at or above par, the company can sell new shares into the market and use the proceeds to buy bitcoin. When it trades below, issuing new shares is harder.
STRC traded around $99.72 on Wednesday, up about 0.2% and close to par, after closing at $98.54 on Sept. 25, when the proposal was announced. Management has said it will recommend that the board keep STRC's rate at 12% until the security shows sustained, healthy trading near $100.
Strategy's common stock was at about $140.28 in early afternoon, down about 0.8%, with bitcoin near $80,760. Strategy's average cost is about $75,446 a bitcoin.
Product or plumbing?
One reading is that this is a genuine product improvement. A security that accrues income every day behaves more like a cash-management alternative, which could widen the pool of buyers and help STRC hold par.
The other is that it changes the packaging, not the economics. The yield is the same, the board still declares each payment, and a 12% funding cost during a bitcoin drawdown shows how much Strategy is paying for capital.
What to watch
Strategy's third-quarter results on Thursday, the filing that makes the amendments effective before Nov. 1, STRC's price relative to $100 in the first weeks of daily payments, and whether the company resumes bitcoin purchases funded by preferred sales.