Strategy, the largest corporate holder of bitcoin, is asking shareholders to approve a change that would allow dividends on its preferred securities to accrue every calendar day, including weekends and holidays, with payments made on the next business day. The proposal covers the four Nasdaq-listed preferred stocks known as STRF, STRC, STRK and STRD.

The board approved the plan on September 24, and a preliminary proxy statement was filed the following day. A definitive proxy is expected around October 5, when voting is set to open, ahead of a virtual special meeting on October 28. If approved, the shift would leave annual dividend rates and overall regular payout amounts unchanged while altering only the timing of accrual and payment.

Details of the Proposed Cadence

Under the plan, every calendar day would serve as a record date. Any declared dividend for that date would be paid on the subsequent business day. STRC, currently paying on a semi-monthly schedule at a 12 percent annual rate, would transition first. Its final semi-monthly record date is expected around mid-October, with the first daily record date on November 1 and the initial payment on November 2.

The other three securities—STRF and STRD, both carrying fixed 10 percent annual rates paid quarterly, and STRK at a fixed 8 percent annual rate also paid quarterly—would complete their current schedules through a final quarterly payment near the end of December. They would then begin daily accrual on January 1, with the first payments anticipated around January 4.

Strategy has described the adjustment as a natural extension of an earlier change for STRC. In June, shareholders approved moving that security from monthly to semi-monthly payments, a step that received support from 97.5 percent of STRC holders and 99.9 percent of common shareholders who voted. The company has paid roughly $255 million in STRC dividends since that shift.

Goal of Greater Price Stability and Liquidity

Executive Chairman Michael Saylor stated that the proposed changes aim to support price stability, liquidity and demand. He has argued that higher payment frequency shortens the effective duration of the instruments and reduces volatility. “The way that you create low volatility and high liquidity is to shorten the duration of the instrument and to actively manage the credit,” Saylor said, adding that greater frequency of adjustments leads to lower volatility and easier entry and exit for investors.

President and Chief Executive Phong Le has called the structure the first global security with true calendar-day accruals and dividends. He noted that when STRC paid monthly, its price typically declined by about 49 basis points on the day before the dividend. After the move to semi-monthly payments, that drop narrowed to roughly 36 basis points. Daily payments are expected to compress such moves further while enabling faster reinvestment of proceeds and potentially steadier month-end valuations for institutional holders.

The primary focus is STRC, which carries a stated value of $100. The security has traded below that level since May and fell as low as $71 during a bitcoin decline in June. It was recently quoted near $98.65. Strategy has spent approximately $1 billion buying back preferred shares under an existing repurchase authorization, including about $174 million of STRC in the week ended September 20. Company officials have pointed to competing preferred securities that already pay on a daily business-day basis and trade near their stated values as evidence that more frequent payments can support pricing.

Broader Context for Strategy’s Preferred Securities

The preferred stocks form a key part of Strategy’s capital structure and funding approach. The company holds approximately 846,000 bitcoin, acquired at an average cost of about $75,416 per coin for a total of roughly $63.8 billion. Recent activity has included both preferred share repurchases and selective bitcoin purchases, alongside the establishment of a U.S. dollar reserve intended to cover multiple months of preferred dividend and interest obligations.

Dividend payments on all four series remain subject to declaration by the board or an authorized committee and are not guaranteed. Strategy has stressed that the daily-accrual proposal does not increase its total regular dividend obligations or alter the economic terms of the securities beyond the timing of accrual and settlement.

If approved, the four preferred stocks would join a very small group of securities worldwide that pay dividends on a daily basis, and would be unique in accruing on every calendar day rather than solely on business days. Strategy has indicated that the resulting increase in payment frequency—from 24 record dates a year for STRC to 365, and from four for the quarterly series—could improve market efficiency and investor appeal without raising the annual cash cost of the instruments.