Strategy Proposes Daily Dividends for Preferred Shares

Strategy aims to pay daily dividends on its four U.S. preferred shares—STRF, STRC, STRK, and STRD—executive chairman Michael Saylor announced. Dividends would accrue every calendar day, including weekends and holidays, and be paid the next business day, with unchanged economics. A preliminary proxy was filed, with a definitive proxy due on October 5 and a shareholder vote scheduled for October 28. STRC will be the first to implement this change, with a record date of November 1 and payment on November 2. Currently, STRC has 24 record dates annually; the new plan would increase this to 365. The other three shares will continue their current quarterly schedule until the end of the year. Saylor emphasized that increasing the frequency of dividends aims to reduce volatility and enhance liquidity. Strategy expects this change to stabilize month-end valuations for fund managers and facilitate faster reinvestment. If approved, these shares would be unique in offering 365-day accruals, among only five globally with daily dividends and a combined market value of 15 billion. Strategy has previously secured shareholder support for changes, with 97.5% of STRC holders approving semi-monthly payments in June. The preferred shares are crucial for Strategy's funding, which includes a recent purchase of 139 million STRC and a $76 million Bitcoin acquisition.