Strategy Inc. Seeks Shareholder Approval for Daily Preferred Dividend Payments

Strategy Inc., a company focused on Bitcoin treasury strategies, is seeking shareholder approval to change its preferred stock dividend payments from periodic distributions to daily payments. According to an SEC filing, the company's board has approved the proposal and scheduled a virtual special meeting for October 28.

The change would affect four series of preferred stocks: STRC, STRF, STRK, and STRD. Under the new plan, each calendar day would become a dividend record date, with payments made on the next business day. The company emphasizes that the dividend rates and total payout amounts will not change.

The first series to transition is STRC, which is expected to begin daily dividend payments on November 2. The remaining series will follow in January, with the first payment for STRF, STRK, and STRD scheduled for January 4. Strategy's CEO attributed recent volatility in STRC to leverage entering the market, stating that the company is working to prevent similar unwind dynamics.