Strategy, the Bitcoin treasury firm, has filed a preliminary proxy proposing that all four of its U.S. preferred shares — STRF, STRC, STRK and STRD — accrue dividends every calendar day, including weekends and public holidays, with payment on the following business day. Executive Chairman Michael Saylor announced the proposal on Thursday, and the filing landed the same day. A definitive proxy is due October 5, and shareholders vote on October 28.

STRC would move first, with a first record date of November 1 and a first payment on November 2. The other three securities finish the quarter on the existing schedule, paying for the last time on December 31 before switching to daily accrual on January 1.

STRC currently has 24 record dates a year. Under the proposal, all four preferreds would move to 365 — an increase President and CEO Phong Le put at 90 times for the three that currently pay quarterly. The economics of the dividends remain otherwise unchanged.

Why does frequency matter to holders?

Saylor framed the change as a volatility-management tool. "The way that you create low volatility and high liquidity is to shorten the duration of the instrument and to actively manage the credit," he said, adding that "the higher the frequency of those adjustments, the lower the volatility of the instrument." Lower volatility, he argued, makes it "easier to get in and get out."

The firm has empirical support for the thesis. When STRC paid monthly, its price fell about 49 basis points on the day before the dividend, Le said. After June's shift to semi-monthly payments, that drawdown narrowed to roughly 36 basis points.

Strategy also expects operational benefits beyond price behavior:

• Steadier month-end marks for fund managers
• A parking place for institutions' idle cash
• Faster reinvestment of distributions
• Possible inclusion in low-volatility indices
• Better haircuts when the shares are pledged as collateral

Le called the instrument "the first global security in the world with calendar day accruals and dividends." If approved, the four preferreds would be the only securities anywhere paying on 365-day calendar accruals, joining five global securities with daily dividends and a combined $15 billion market value. "Digital credit, digital capital, is meant to work every single day," he said.

How does this fit Strategy's funding model?

The preferreds anchor the firm's capital structure. Shareholders approved the last frequency change comfortably in June — 97.5% of STRC holders and 99.9% of common shareholders backed semi-monthly payments — and Strategy has since paid $255 million in STRC dividends, according to Le.

The company continues to manage its obligations actively. It bought $139 million of STRC this month while pausing Bitcoin purchases, and raised $2 billion selling MSTR stock to build a dollar reserve. A standing framework allows it to sell up to $1.25 billion of Bitcoin to service these obligations if needed. Last week the firm bought a further $76 million of Bitcoin, bringing its holdings close to their June record.

If the October 28 vote follows June's pattern, all four preferreds will be accruing on a calendar-day basis by January 1, closing out a sequencing that begins with STRC's first daily-cycle record date on November 1.