Strategy, the Bitcoin treasury company led by Michael Saylor, announced on October 16 that its board had declared conditional daily cash dividends on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, covering every calendar day from November 1 through November 30. The declaration, detailed in a Form 8-K filing with the U.S. Securities and Exchange Commission, keeps the annualized rate at 12% and would deliver a total of $1 per share for the month if the required conditions are met.

Daily amounts are set at either $0.03 or $0.04 per share. Each day carries its own record date at 5:00 p.m. New York time, with payment due on the following business day. The first payment is scheduled for November 2 and the final one for around December 1. Record dates continue through weekends and holidays, and payments for multiple days may be combined when markets are closed.

Two Conditions Must Be Satisfied

The daily schedule depends on two specific steps. Common stockholders must approve the Daily Dividend Amendments at a special meeting set for October 28 at 10:00 a.m. Eastern Time. Approval is required by 5:00 p.m. New York time on October 31. Voting materials are available through the company’s designated portal.

Second, the amended and restated certificate of designations for STRC must be filed and become effective by 12:01 a.m. Eastern Time on November 1. If either condition fails, the daily dividends will not be paid.

Strategy shifted STRC dividends from monthly to twice-monthly payments earlier in 2026. The proposed daily structure would extend the same approach to other preferred securities—STRF, STRK and STRD—with a first record date of January 1, 2027, if approved.

Purpose of the Change

Company materials state that the move aims to keep STRC trading closer to its $100 target price, reduce cyclicality through more frequent record and payment dates, improve liquidity, and shorten the lag before reinvestment. The annual rate itself remains unchanged. Management intends to continue recommending the 12% rate until STRC shows sustained, healthy trading near $100 per share.

Strategy expects any November daily dividends, if paid, to be treated as a non-taxable return of capital for U.S. federal income tax purposes up to each holder’s tax basis in the shares. Holders are advised to consult their own tax advisors. Dividends remain payable only when, as and if declared by the board out of legally available funds.

Market Reaction and Broader Context

On the day of the disclosure, Strategy common shares (MSTR) declined sharply. One report showed a drop of 10.43% to $135.51, while another recorded a 9.56% decline to $136.83. STRC traded near or just below $99, with readings around $98.58 to $99.32, remaining under its $100 reference level.

The preferred stock has served as a key fundraising vehicle for Bitcoin purchases. Strategy’s holdings stood near 848,000 to 848,250 BTC after a recent purchase of 250 Bitcoin for $21.5 million. In prior weeks the company directed substantial capital toward STRC repurchases—approximately $176 million in one period versus $28 million spent on Bitcoin, and roughly $368.7 million on STRC buybacks versus $50.2 million on Bitcoin in another—supporting the preferred shares’ price.

Separately, Cantor Fitzgerald raised its price target on Strategy common shares to $208 from $186 while maintaining an overweight rating. The revision incorporated a higher 12-month Bitcoin price assumption of $112,000, up from $98,000, and implied an enterprise value of $110 billion based on the company’s Bitcoin holdings.

MSCI has advanced eligibility rules that would classify certain Bitcoin treasury companies as non-operating and exclude them from global indexes, with changes planned to take effect starting November 30. Strategy appears on a list of potential deletions, with a final list expected November 11. JPMorgan previously estimated that removal from MSCI indexes could prompt about $2.8 billion in selling. Fellow Bitcoin treasury firm Metaplanet is also under review.

If approved, Strategy’s daily STRC dividends would place it alongside Strive, which already pays daily dividends on its SATA preferred security. The outcome of the October 28 vote and the November 1 filing deadline will determine whether the daily schedule begins next month or the existing payment pattern continues.