Strategy Seeks Shareholder Approval for Daily Dividends on Preferred Securities

Strategy is seeking shareholder approval to convert its four preferred 'digital credit' securities from periodic payouts to daily dividends. The proposal, which was filed with the U.S. Securities and Exchange Commission on Friday, would change the dividend record dates for STRC, STRF, STRK, and STRD to every calendar day.

The company's goal is to shift to a daily framework while keeping economics consistent, specifically, maintaining the same dividend rates and total amount paid. Under the proposed structure, each calendar day would be a record date, with payments made on the next business day.

Strategy CEO Phong Le attributed recent volatility in STRC to more leverage entering the market than expected, but emphasized that the company is pursuing measures to avoid another similar unwind. These include maintaining a strong U.S. dollar reserve and repurchasing STRC when it trades below its $100 stated amount.