Strategy Proposes Daily Dividend Record Dates for Preferred Stocks

Strategy, known for its enormous Bitcoin treasury, is proposing an unusual change to its preferred stocks. The company wants to switch from monthly or semi-monthly dividend schedules to daily record dates for four U.S.-listed securities: STRC, STRF, STRK, and STRD. This change would not increase or decrease the regular dividend rates on these preferred stocks.

The proposal, approved by Strategy's board on September 24, would make every calendar day a dividend record date. Any dividend declared for that date would be paid on the following business day, including weekends and holidays. However, the cash payment itself would wait until the next business day.

This change is part of Strategy's experiment to make its preferred shares behave more like digital credit. The company has increasingly described its preferred-stock products as 'digital credit,' building different securities around fixed or variable distributions while using the proceeds to support its broader capital structure and Bitcoin strategy.