Strategy has filed a proposal to move its four preferred stocks, including STRC, to daily dividend payments, a shift inspired by Bitcoin treasury firm Strive's earlier decision. The company's board approved this initiative, and shareholders will vote on it during a virtual meeting on October 28.
If the proposal is approved, each calendar day will serve as a dividend record date, with payments made on the next business day. The first daily dividend payment for STRC is anticipated on November 2, followed by STRF, STRK, and STRD in January 2024.
This move comes after Strive became the first public company to offer daily dividends, which it implemented for its SATA preferred stock earlier this year. Unlike Strive's business-day schedule, Strategy's plan allows for daily record dates.
Strategy CEO Phong Le noted that the price of STRC had previously dropped due to unexpected leverage in the market. The company aims to stabilize its stock price and attract long-term institutional investors by maintaining a strong dollar reserve and implementing a repurchase policy for STRC.
Currently, STRC is trading around $98.41, close to the company's target of keeping it between $99 and $100, while offering a 12% variable annual dividend rate.