MicroStrategy Seeks Daily Dividends for Preferred Stocks

MicroStrategy, now known as Strategy, is proposing daily dividends for its preferred stocks STRF, STRC, STRK, and STRD. If approved by shareholders at an upcoming meeting on October 28, this would be a significant change from the current system.

The proposal aims to reduce reinvestment lag, increase liquidity and market efficiency, and enhance price stability. The dividends would accrue every calendar day, including weekends and holidays, but would only be paid on business days.

This move is part of Strategy's efforts to support its Bitcoin Treasury strategy. As the largest corporate holder of Bitcoin, Strategy has been buying and holding the cryptocurrency since 2020. However, it slowed down its purchases this year due to the bear market and instead focused on protecting its balance sheet.

The proposal would benefit both investors and common stockholders by increasing the attractiveness and utility of Strategy's Digital Credit instruments. It would also support Strategy's ability to access preferred equity capital efficiently and expand its capital markets toolkit.