Strategy Inc. Seeks Daily Dividends for Preferred Stocks Amid Price Volatility
Strategy Inc., the bitcoin treasury company behind the MSTR stock ticker, is asking shareholders to approve daily dividends for its four preferred stocks. The proposal targets STRF, STRC, STRK, and STRD, which currently pay out dividends on a quarterly basis.
The change in payment frequency aims to support price stability, liquidity, and demand for the stocks, according to a tweet by Michael Saylor, Strategy's CEO. However, the actual dividend rates and total payment amounts remain unchanged.
STRC, one of the affected stocks, has been struggling to reach its $100 stated value since May, despite having a 12% annual dividend rate. The stock bottomed out at $71.25 in June but has since recovered to around $98.65. CEO Phong Le attributed the drop to unexpected leverage entering the market for STRC.
Strategy is not alone in this move, as Strive, another bitcoin treasury company, implemented daily dividends on its SATA preferred stock in May. Strategy's version of daily dividends differs slightly, counting every calendar day, including weekends and holidays, as a record date rather than just business days.