Strategy Shareholders Approve Daily Dividends for Four Preferred Stocks Starting November

Preliminary results indicate that 99.3% of the votes cast supported this change.

The company's chairman, Michael Saylor, announced on Wednesday that the plan covers Strategy's STRF, STRC, STRK, and STRD preferred stocks. The vote occurred during a special meeting of stockholders.

Under the new structure, every calendar day will serve as a record date, with payment occurring on the subsequent business day. STRC will commence first, setting its initial daily record date for November 1, with payment scheduled for November 2.

STRF, STRK, and STRD are set to follow this schedule, with their first record date on January 1 and payment on January 4. The final implementation of this change remains contingent upon Strategy filing amended terms for each security.

In instances where record dates fall on weekends or holidays, the dividends will be consolidated and paid out on the following business day. For example, dividends due on Friday, November 6, Saturday, November 7, and Sunday, November 8, would be treated as having a Friday record date and paid together on Monday, November 9.

This shift from 24 annual record dates for STRC to 365 is intended, according to Strategy, to help reduce volatility within its preferred shares.

This development reflects a trend among market participants in structuring assets to potentially manage volatility, as the company has also recently taken actions such as pausing Bitcoin purchases to repurchase STRC shares.

Why it matters

This change significantly alters the dividend structure of these preferred shares, potentially impacting investor returns and volatility perceptions. Regulators and exchanges will be watching how the practical implementation of these daily record dates affects trading mechanics and investor access.

Earlier coverage

• No specific regulatory action detailed in source text Oct 28
• Datavault AI plunges 50% after firm cannot access BTC from Biconomy exchange Oct 28