Strategy Seeks Daily Dividend Payments for Preferred Stocks

Strategy is seeking shareholder approval to move its four preferred stocks, including STRC, to daily dividend payments without changing their dividend rates or the total amount paid.

The company's board approved the proposal on Thursday, according to a Friday filing with the US Securities and Exchange Commission. Shareholders are scheduled to vote on the amendments at a virtual special meeting on Oct. 28.

STRC would move to the new schedule first, with its initial daily dividend payment expected on Nov. 2. STRF, STRK, and STRD would follow in January, with their first payments under the daily schedule expected on Jan. 4.

The company's CEO Phong Le attributed a decline in STRC's price to more leverage entering the market than anticipated. He said investors borrowed against Bitcoin at lower rates to buy STRC and capture the spread between their borrowing costs and STRC's dividend yield.