MicroStrategy Proposes Daily Dividends for Preferred Stocks
Michael Saylor, Executive Chairman of MicroStrategy (MSTR), responded to an investor's question about paying common shareholders a dividend. He directed the investor to buy preferred stocks instead, which are called 'digital credit.' This digital credit has grown rapidly, reaching $16 billion in just 20 months, with the company owning about 90% of it.
The flagship product is its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), also known as Stretch. It has a notional value of $9.3 billion and a current yield of 12.2%. Strategy wants STRC to trade between $99 and $100, but it fell below $80 in June 2026.
Recently, MicroStrategy filed a preliminary proxy proposing daily dividends on four preferred stocks: STRF, STRC, STRK, and STRD. This would change the way these securities pay out dividends, from quarterly to daily. The company claims that this will boost demand for the preferreds, helping them buy more Bitcoin per share.
The vote on this proposal is set for October 28, with voting opening on October 5. If approved, STRC's first daily record date would be November 1, and the other three would follow on January 1, 2027.