Strategy Inc. filed a preliminary proxy statement on September 25, 2026, asking common shareholders to convert four series of perpetual preferred stock — STRC, STRF, STRK and STRD — from semi-monthly and quarterly payouts to daily accrual, with the first STRC payment scheduled for November 2.

The proposal goes to a virtual special meeting on October 28, 2026. Voting opens on or around October 5, with approval requiring a majority of voting power. Executive Chairman Michael Saylor controls approximately 32.9% of voting power through Class B shares, putting the threshold within reach before outside votes are tallied.

What changes for the four preferreds?

Under the current setup, dividends on Strategy's preferreds run on staggered semi-monthly and quarterly schedules. The proxy would replace that with continuous daily accrual across every calendar day, weekends and holidays included. Payments would settle on the next business day, with weekend accruals catching up when markets reopen.

Coupon levels do not move. STRC would keep its 12% variable rate, and total annual dividend obligations would stay where they are. The proxy does not authorize any change to principal, conversion rights or call provisions — only the timing of accrual and payment.

Why STRC moves first?

STRC is the priority case. The security carries roughly $9.3 billion in notional outstanding and has distributed $255 million in dividends since June 2026. If shareholders approve, STRC would shift to daily record dates beginning November 1, 2026, with the first daily-cycle payment on November 2, 2026.

The remaining three series would maintain their current schedules through a December 31, 2026, payment, then begin daily accruals on January 1, 2027. The proxy cites reduction of reinvestment lag — the gap between accrual and cash in hand — and tighter secondary-market liquidity as the stated rationale.

Can a daily cadence fix the price discount?

STRC has traded below its $100 par value since May 2026 and touched a low of $71 in June, even after substantial buybacks by the issuer. Persistent below-par trading compresses the economics of a fixed-coupon preferred in secondary markets and complicates future issuance, since new tranches typically price relative to existing series.

A daily payment cadence is one of several structural tools issuers have used to narrow preferred discounts, alongside tender offers and rate resets. Whether the change alone can close the gap is the open operational question. Shortened reinvestment lag adds a cash-flow attribute that competes more directly with money-market funds, but it does not address the underlying rate sensitivity and credit posture already priced into the instrument.

What does the staggered rollout test?

The phased calendar effectively turns the first ten weeks into a real-world pilot. Investors and treasury desks will have STRC on a daily schedule from November through year-end while STRF, STRK and STRD continue paying under legacy terms, producing an early read on whether compressed intervals translate into tighter bid-ask spreads and a narrower discount to par.

A four-week window separates the October 28 vote from the first STRC payment. If shareholders reject the proposal, the existing semi-monthly and quarterly schedules remain in force across all four series and the issuer returns to the drawing board on its preferred-distribution mechanics before year-end.