Key Highlights

  • Strategy shares fell 1.86% to $158.61 at last closing while Bitcoin traded roughly flat around $84,000 after a large quarterly Options expiry.
  • The board proposed switching four preferred stock series, STRF, STRC, STRK and STRD, to daily Dividend payments, with a Shareholder vote set for October 28.
  • The change affects only payment frequency, not dividend rates or total amounts, and is aimed partly at helping STRC trade closer to its $100 par value.
  • Strategy has repurchased about $1 billion of its preferred stock in total, including $174 million of STRC in a single recent week.

Strategy Inc (NASDAQ:MSTR), the bitcoin treasury company formerly called MicroStrategy and a member of the Nasdaq-100, disclosed that its board wants to switch its preferred stocks to daily dividends. The board approved asking common shareholders to amend the terms of four preferred series, STRF, STRC, STRK and STRD, so that every calendar day would become a dividend record date, with payment following on the next Business day.

A special shareholder meeting is set for October 28, 2026, held virtually, with only common shareholders eligible to vote. The filing states the change won't raise or lower the total regular dividends, won't change dividend rates and won't weaken holder protections; if approved, daily payments would begin November 2, 2026 for STRC and January 4, 2027 for the other three series.

Latest Developments

The proposal centers on STRC's Par Value problem. STRC is a variable-rate preferred that Strategy manages to trade near its $100 stated value, but it has traded below $100 since May, falling sharply during bitcoin's June sell-off, with a current annual dividend rate of 12%. A stock usually drops on its ex-dividend date by roughly the value of the payment, and data showed STRC's ex-dividend drops got smaller when Strategy moved from monthly to semi-monthly payments earlier this year, a change shareholders approved with about 99.9% support; daily payments would spread the drop into tiny pieces, potentially making STRC behave more like a cash-like instrument that holds steady near $100.

Competition is another factor: a rival company's preferred stock already pays dividends every business day at a 13% annual rate and has held its $100 value. Strategy has also been buying back its own preferred stock, about $1 billion in total, including $174 million of STRC in a single recent week, suggesting management is spending effort to keep those securities attractive to investors.

Financial and Business Position

Strategy, led by executive chairman Michael Saylor and CEO Phong Le, turned the old enterprise software maker MicroStrategy into the largest corporate holder of bitcoin, holding about 846,000 BTC bought for about $63.8 billion, an average of roughly $75,416 per coin. With bitcoin around $84,000, the stack is worth more than it cost, though by a smaller Margin than earlier in the cycle.

The company pays for its bitcoin purchases with a mix of common stock sales, convertible Debt and, increasingly, its lineup of preferred securities, each with different dividend and seniority terms. Those preferreds carry fixed or variable dividend obligations that have to be paid whatever bitcoin does, which is why investors watch how easily the company can keep selling them.

Stock-Market Context

The plan changes only when preferred holders get paid, not how much, so it does not change Strategy's total Cash Dividend bill, but the effort to defend STRC's par value points to an underlying weakness: one of Strategy's main funding tools has traded below par for months. With bitcoin roughly flat and no crypto rally to lean on, MSTR common had no offsetting boost even as megacap tech gains lifted the broader Nasdaq.

A Funding Tool Under Repair

Investors are watching the October 28 shareholder vote, given the wide margin by which the earlier semi-monthly switch passed, whether STRC gets back to $100 before or after daily payments begin November 2, further preferred stock Buybacks or a return to new preferred issuance to fund bitcoin purchases, and bitcoin's price, still the single biggest Factor for MSTR common shares.