Strategy Proposes Daily Dividends on Preferred Shares Used for Bitcoin Funding

Strategy Investment has announced a proposal to pay dividends on a daily basis for four of its preferred‑stock series—STRF, STRC, STRK and STRD. The change would move cash to shareholders each calendar day, with payment the next business day, while keeping the existing annual dividend rates unchanged.

Current dividend structure

Under the August 31 dividend declaration, the series have the following payment cadences and rates:

• STRF: quarterly dividend, 10% annual rate, cumulative.
• STRC: twice‑monthly dividend, up to 12% annual rate, cumulative.
• STRK: quarterly dividend, 8% annual rate, cumulative; dividends may be paid in cash, MSTR shares, or both.
• STRD: quarterly dividend, 10% annual rate, non‑cumulative.

Proposed daily payment schedule

The company says dividends would accrue every calendar day—including weekends and holidays—and be paid on the next business day. The proposal does not specify record dates, an effective start date, or the series‑by‑series board approvals that would be required.

Market context

At the close on September 24, the preferred shares traded as follows:

• STRF above $100 per share (20,313 shares outstanding).
• STRC near $100 per share (1,023,834 shares outstanding).
• STRK in the low $70s (69,162 shares outstanding).
• STRD in the low $70s (93,762 shares outstanding).

These prices serve as a trading baseline and do not demonstrate how a daily dividend schedule would affect demand or pricing.

Potential impact on financing

More frequent cash receipts could make the preferred shares more attractive to investors, which might support future issuances that Strategy could use to fund its Bitcoin‑related activities. However, the proposal does not change the annual dividend rates or the legal claims of shareholders, and any effect on capital raising remains speculative.

Company cash position

Strategy’s September 21 cash update showed a USD 5.04 billion reserve earmarked for preferred‑share dividends and debt interest, plus an additional USD 1.05 billion for broader treasury purposes. In the week prior, the company paid $57.4 million in preferred dividends and interest, repurchased $174 million of STRC shares, and bought 950 Bitcoin for $75.7 million.

While the daily dividend proposal alters the timing of cash distribution on paper, its practical benefit to investors and to Strategy’s financing strategy will depend on subsequent board approvals, amended terms, and market response.