MicroStrategy Proposes Daily Dividends to Boost Market Efficiency

MicroStrategy, a software company turned bitcoin treasury giant, is pushing to change how it pays investors holding its preferred stocks. The firm wants to switch from monthly or quarterly payouts to daily dividends for four of its preferred stock series: STRF, STRC, STRK, and STRD. If the vote passes on October 28, shareholders will receive a dividend every single day, including weekends and holidays.

The company argues that daily payouts would reduce reinvestment lag, enhance liquidity, and improve market efficiency. By paying out more frequently, Strategy believes it can keep capital moving rather than letting it sit idle between payment dates. This change is part of the company's broader effort to modernize how it rewards preferred stockholders.

Strategy remains the largest corporate holder of bitcoin, a position it built after pivoting from enterprise software to a bitcoin-buying strategy in 2020. The company bought 950 bitcoins for $75.7 million last week, its first purchase since August, and may sell up to $1.25 billion worth of bitcoin to fund USD reserves, dividends, or buybacks.

The pace of buying has cooled considerably this year as bitcoin slipped into a bear market. Strategy shifted focus toward protecting its balance sheet and sold portions of its bitcoin holdings rather than continuing its once-routine weekly purchases.