Strategy Seeks Shareholder Approval for Daily Dividend Payments

Strategy is asking common shareholders to approve daily dividend payments for four U.S.-listed preferred securities at its virtual special meeting on October 28. The proposal covers STRF, STRC, STRK, and STRD, which would replace their current quarterly payment schedules with daily record dates if approved.

The proposed amendment would change the way dividends are paid out, but it wouldn't automatically declare future payments. Each dividend would still require approval from Strategy's board or an authorized committee, and payments would remain subject to available funds.

STRC is expected to be the first security to trade under the new daily dividend approach, with its first payment made on November 2 for securities held as of November 1. STRF, STRK, and STRD will continue to follow quarterly approaches until December, when they'll switch to daily payments.

The company expects the shift to more frequent payments to reduce reinvestment delays and improve liquidity and trading efficiency. However, it's essential to note that preferred stockholders won't be able to vote on these securities.