Strategy shareholders approve daily dividends for preferred stocks

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Strategy daily dividends for preferred stocks

Highlights

Strategy shareholders approved amendments for STRF, STRC, STRK, and STRD preferred stocks to shift to daily dividend accrual, with 99.3% support.
STRC will begin daily dividend payments Nov. 2, 2024, while STRF, STRK, and STRD will follow on Jan. 4, 2027, with annual dividend rates between 8% and 12%.
Strive closed a $630 million SATS offering at $90 per share and plans daily dividends with a fixed 15% annual rate starting Nov. 9, subject to declaration.

Preferred stock payout schedule shifts

As reported by Cointelegraph, Strategy said Wednesday that shareholders approved amendments allowing its four preferred stocks, STRF, STRC, STRK and STRD, to pay dividends every business day, with 99.3% of votes cast in favor under preliminary results.

The amendments move dividend payments from semi-monthly or quarterly schedules to a daily accrual model. Dividends will accrue each day, including weekends and holidays, without any change to the annual dividend rates attached to the securities.

Strategy expects daily payments on STRC to begin on Nov. 2, while STRF, STRK and STRD are scheduled to follow on Jan. 4, 2027. The company says the change is designed to reduce the lag between dividend accrual and cash receipt for investors.

Strategy’s preferred shares carry annual dividend rates ranging from 8% to 12%. STRC has a variable rate currently set at 12%, while the other three securities pay fixed dividends, and STRK also includes an option for investors to convert holdings into Strategy common stock.

Bitcoin treasury competition and market context

Another Bitcoin treasury company, Strive, has already introduced daily cash dividends on its SATA preferred stock, launching the feature in June ahead of Strategy’s planned rollout. Strive has also launched a second preferred security, SATS, with a fixed 15% annual dividend rate and daily payments scheduled to begin Nov. 9, subject to declaration.

On Oct. 20, Strive closed a $630 million SATS offering after selling 7 million shares at $90 each. The company says the proceeds could be used for Bitcoin purchases and other corporate purposes, but it has not disclosed how much it plans to direct to the cryptocurrency.

Strategy remains the largest publicly traded corporate holder of Bitcoin with 848,517 BTC, while Strive ranks fourth with 43,000 BTC, according to BitcoinTreasuries.net data. The dividend changes come as Bitcoin treasury companies continue to use yield-bearing preferred stock structures to broaden investor appeal and support funding flexibility.

Our earlier coverage of Hainan Rubber’s proposed subordinated perpetual sustainable securities explained how the company aims to refinance offshore debt through notes issued by its majority-owned unit Halcyon Agri. We highlighted that the instruments sit lower in the capital structure and allow coupon deferral, and outlined key balance-sheet and liquidity factors shaping how investors assess risk in such yield-bearing structures.

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