Strategy Holdings Inc. has filed a proposal with the U.S. Securities and Exchange Commission to change the dividend schedule of its four preferred securities—STRC, STRF, STRK and STRD—from quarterly to daily payments. The board approved the amendment on Thursday, and shareholders will vote on the change at a virtual special meeting scheduled for Oct. 28.
If the amendment is approved, each calendar day will become a dividend record date, with the corresponding payment made on the next business day. STRC would be the first to adopt the new schedule, with its initial daily dividend expected on Nov. 2. The remaining preferred stocks—STRF, STRK and STRD—would follow in January, with first payments anticipated on Jan. 4. The changes will take effect after Strategy files updated certificates for the preferred shares with the state of Delaware.
Strategy’s move follows a similar shift by fellow Bitcoin‑treasury firm Strive, which in May announced that its SATA preferred stock would pay dividends every business day starting June 16 at a 13% annual rate. Strive holds about 26,355 Bitcoin, whereas Strategy’s treasury contains roughly 846,000 Bitcoin, according to BitcoinTreasuries.NET.
Strategy markets its preferred securities as “digital credit,” designed to generate income from a capital structure built around its Bitcoin holdings. The flagship STRC security, which carries a variable 12% annual dividend, experienced notable volatility this year. In June, the share price fell below its $100 stated amount, reaching an intraday low of $71.25 on June 26. CEO Phong Le attributed the decline to unexpected leverage entering the market, as investors borrowed against Bitcoin at lower rates to capture the spread between borrowing costs and STRC’s dividend yield. When Bitcoin’s price fell, leveraged investors faced margin calls, prompting sales of STRC.
Le said Strategy intends to mitigate similar unwind risks by maintaining a strong U.S. dollar reserve and retaining the option to repurchase STRC if it trades below the $100 target. The company aims to attract long‑term holders, particularly institutional investors. Since the June dip, STRC has recovered to about $98.41, close to the company’s goal of keeping the security between $99 and $100.
The proposal, if approved, would make Strategy the first public Bitcoin‑treasury firm to implement a calendar‑day dividend record schedule, distinguishing its approach from Strive’s business‑day model.
