Strategy shareholders approve daily dividends for STRF, STRC, STRK, STRD
In brief
- Strategy's daily dividend amendment won 99.3% of votes cast in preliminary results, Saylor said.
- STRC moves first, with its first daily record date November 1 and payment November 2.
- STRF, STRK and STRD follow with a January 1 record date and January 4 payment.
- Change still depends on Strategy filing amended terms for each preferred stock.
STRC goes first
The vote took place at a special meeting of stockholders on Wednesday. Under the new schedule, every calendar day becomes a record date, with payment on the next business day.
STRC moves first. Saylor said its first daily record date is November 1, with payment on November 2, while STRF, STRK and STRD follow with a first record date of January 1 and payment on January 4.
It isn't in effect yet. According to the filing Decrypt cites, the change still depends on Strategy filing amended terms for each stock.
For STRC, that's a jump from 24 record dates a year to 365.
Saylor marked the result in a post on X.
"The amendment enables $STRF , $STRC , $STRK and $STRD to accrue dividends every calendar day. Thank you to all who voted."
How weekends get handled
U.S. markets don't open on weekends, so dividends with record dates on non-trading days will in practice be grouped together. The Depository Trust Company will treat a weekend or holiday record date as falling on the previous business day (Nasdaq treats that same day as the ex-dividend date).
Strategy gave an example. Dividends with record dates of Friday Nov. 6, Saturday Nov. 7 and Sunday Nov. 8 would all be treated as having a Friday record date and paid together on Monday Nov. 9. Because trades settle the next business day, an investor who buys STRC on that Friday wouldn't receive any of the three dividends, while a seller that day would collect all three. The company said treatment could differ for shares traded outside Nasdaq or held through some brokers.
Background: volatility, buybacks and MSCI
Strategy proposed the change last month, saying it would help dampen volatility in its preferred shares. STRC traded at $99.86 on Wednesday, just below its $100 par value, according to Yahoo Finance.
The week before the vote, the Bitcoin treasury company paused its Bitcoin buying for the first time since mid-September and spent $204.9 million buying back STRC. Strategy's also facing possible removal from MSCI's widely tracked equity indexes. MSCI finalized a rule treating companies whose balance sheets are dominated by a single asset as ineligible, and it plans to publish the list of affected companies on November 11, Decrypt reported.
Frequently asked questions
When do Strategy's daily preferred dividends start?
Saylor said STRC moves first, with its first daily record date on November 1 and payment on November 2. STRF, STRK and STRD follow with a first record date of January 1 and payment on January 4. The change still depends on Strategy filing amended terms for each stock.
How do daily dividends work when markets are closed on weekends?
Dividends with record dates on non-trading days will in practice be grouped together. The Depository Trust Company treats a weekend or holiday record date as falling on the previous business day, which Nasdaq also treats as the ex-dividend date. Strategy said record dates of Nov. 6, 7 and 8 would be treated as Friday and paid together on Monday Nov. 9.
Why did Strategy propose daily dividends?
Strategy proposed the change last month, saying it would help dampen volatility in its preferred shares. For STRC, it means moving from 24 record dates a year to 365.
