Strategy is asking shareholders to approve daily dividends across its four U.S. listed preferred stocks, STRF, STRC, STRK and STRD.
The largest corporate holder of bitcoin proposed that dividends would accrue every calendar day, including weekends and holidays, and be paid on the next business day.
The proposal changes payment timing, but leaves dividend rates and total regular dividend amounts unchanged. Shareholders are due to vote on Oct. 28. If approved, STRC’s first daily dividend would be paid on Nov. 2.
This move to daily dividends would be primarily targeted at STRC, which went from monthly to bi-monthly payments in June. STRC has still struggled to return to its $100 stated value since May, and fell to as low as $71 during bitcoin’s selloff back in June. Its annual dividend rate is currently 12%.
Daily payments could make STRC more attractive to income investors by reducing the wait to receive and reinvest dividends, while smoothing price moves around payment dates. Strategy says supporting a trading price close to $100 is the aim of the change.
Strategy has also spent about $1 billion repurchasing preferred shares under its $2 billion programme, including $174 million of STRC in the week ended Sept. 20. 32 perpetual preferred SATA which pays dividends every business day at a 13% annual rate and continues to hold near $100. 65.
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