Strategy is seeking shareholder approval to amend its preferred securities—STRF, STRC, STRK and STRD—so that regular dividends would accrue every calendar day, including weekends and holidays
Strategy is seeking shareholder approval to amend its preferred securities—STRF, STRC, STRK and STRD—so that regular dividends would accrue every calendar day, including weekends and holidays. Payments would then be made on the next business day following accrual. This proposal does not alter the scheduled dividend rates or increase the company’s overall dividend obligations. The shareholder vote is scheduled for October 28.
The company previously experimented with expedited payment schedules for its preferred securities. In June, STRC transitioned from a monthly to a semi-monthly dividend cycle. At the time, CEO Phong Le emphasized that the purpose was to stabilize STRC’s price, reduce fluctuations associated with infrequent payments, boost liquidity, and allow investors to reinvest more rapidly.
Strategy’s preferred securities play a significant role in its broader capital structure, which is closely tied to its Bitcoin treasury. They should not be viewed simply as fixed-income instruments unrelated to the company’s digital asset holdings.
An analysis by Coinpaper found that the company’s financial model increasingly weaves together preferred stock, cash reserves, and Bitcoin. Strategy can leverage capital raised via preferred securities, use reserves to ensure timely payment of dividends and interest, and, in specific scenarios, sell part of its Bitcoin holdings to meet these obligations.
Investor demand for products like STRC remains a critical factor in the company’s treasury operations. STRC is structurally intended to remain close to its $100 stated value, but it traded well below this benchmark earlier in the year. In response, Strategy raised the dividend yield to 12%, increased its cash reserves, and initiated a substantial buyback campaign.
Strategy has spent nearly $490 million on STRC repurchases over three consecutive reporting periods, with individual tranches totaling $176 million, $139 million, and $174 million, according to Coinpaper. This outlay reportedly exceeded its Bitcoin acquisitions even after BTC buying resumed.
With these buybacks, Strategy reinforced its commitment to stabilizing STRC while continuing to hold a significant position in Bitcoin.
The proposed change focuses on the timing of dividend accrual rather than altering the fundamental economics of the securities. If shareholders approve the amendment, investors will begin to accrue their regular dividends daily, rather than accumulating larger sums over longer periods before payment.
Strategy argues that this daily accrual approach may help to smooth out price movements often seen around conventional dividend record and payment dates, making preferred shares appear more stable to prospective buyers.
Stabilizing the price of these income-oriented securities could potentially enhance their appeal and ease future fundraising if income-focused investors see less risk from dividend volatility.
However, the company acknowledges that the underlying cost of funding preferred dividends remains unchanged with these changes in place.
In the second quarter, Strategy reported a USD Reserve of $3.75 billion, which covered approximately 2.1 years of dividend and interest payments at that time. The company also disclosed that it had liquidated about $218 million worth of Bitcoin during 2026 to help meet its dividend obligations.
Coinpaper has followed Strategy’s ongoing evolution from a simple, Bitcoin-accumulation strategy to a more dynamic management of BTC, cash, debt, and preferred securities.
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