Strategy Seeks Shareholder Approval for Daily Dividend Payments

Strategy, a company that manages a significant Bitcoin treasury, is seeking shareholder approval to change its dividend payment schedule for four preferred stocks. The proposal would shift the current quarterly payments to daily dividends without altering the overall amount distributed.

The move comes after fellow Bitcoin treasury company Strive became the first public firm to adopt a daily dividend model in May. Strategy's proposed changes differ from Strive's, where each business day is considered a record date for dividend payment. In contrast, Strategy wants every calendar day to be a record date, with payments made on the next business day.

STRC, one of Strategy's preferred stocks, would be the first to transition to daily dividends, with its initial payment expected on November 2nd. The other three stocks, STRF, STRK, and STRD, will follow in January, with their first payments under the new schedule anticipated for January 4th.

Strategy's CEO explained that the company aims to avoid another significant price swing like the one experienced by STRC in June, when it fell below its $100 stated amount due to excessive leverage among investors. The company hopes to attract more long-term holders, particularly institutional investors, and maintain a strong US dollar reserve.