Strategy Proposes Daily Dividend Payments for Preferred Shares

Strategy is proposing to pay dividends daily on four of its preferred shares used in its Bitcoin financing strategy, according to Michael Saylor's Twitter account. The proposal would put cash in holders' hands sooner without changing the securities' economics at their current rates.

The proposed dividend payment schedule for STRF, STRC, STRK, and STRD would be every calendar day, including weekends and holidays, with payments made the next business day. However, it's worth noting that the current quarterly or twice-monthly payment schedules for these shares remain in place.

Strategy's preferred-stock disclosure draws a distinction between cumulative and noncumulative dividend payments. STRF, STRC, and STRK have cumulative dividends, meaning unpaid amounts can accrue under their terms. STRD has noncumulative dividends, where an omitted regular dividend does not become an arrears claim.

The proposal may make the preferred shares more attractive to investors if it translates into sustained buying and firmer trading prices. This could potentially make new preferred issuance more attractive to Strategy as a way to raise capital for its Bitcoin strategy.