Strategy Inc Seeks Shareholder Approval for Daily Preferred Stock Dividends
Strategy Inc. is proposing a significant change to how it distributes dividends on its preferred stocks, aiming to switch to a daily accrual system. The Bitcoin treasury company has asked shareholders to approve the shift, which would see dividends on its perpetual preferred stocks, STRC, STRF, STRK, and STRD, accrue every day, including weekends and holidays. Payments would then be made on the next business day. If approved, STRC would be the first to implement the change, with daily record dates beginning November 1, 2026, and the first payment scheduled for November 2.
The proposal, detailed in a preliminary proxy statement filed on September 25, 2026, will be put to a vote at a virtual special meeting on October 28, 2026. Voting is expected to open around October 5, 2026, with approval requiring a majority of voting power. Notably, Michael Saylor holds approximately 32.9% of voting power through Class B shares, giving the proposal a strong initial advantage.
The current dividend rates will remain unchanged, with STRC maintaining its 12% variable rate. However, the timing of payments will shift from a mix of semi-monthly and quarterly schedules to daily accruals. STRF, STRK, and STRD will follow the new system starting January 1, 2027, after making their final December 31 payments under the old system.
Strategy Inc. cites reducing reinvestment lag and improving liquidity as key reasons for the change. STRC, with a notional outstanding amount of approximately $9.3 billion, has traded below its $100 par value since May 2026, hitting a low of $71 in June. The staggered rollout of the new system will effectively make STRC a pilot for the other preferred stocks.