Strategy's board has approved a proposal to pay daily dividends on four of its U.S.-listed preferred stocks — STRC, STRD, STRF and STRK — subject to a shareholder vote at a virtual special meeting on Oct. 28, according to an 8-K filing with the Securities and Exchange Commission on Friday.

The proposal would give the four securities a dividend record date every calendar day, including weekends and holidays. Any dividend declared for a given date would be paid on the next business day. Strategy said the changes leave dividend rates and total regular dividend obligations unchanged.

STRC would switch first, with an initial record date of Nov. 1 and payment the following day if shareholders approve the amendments. STRF, STRD and STRK would follow in January.

"The proposed changes aim to support price stability, liquidity, and demand," Strategy co-founder and Executive Chairman Michael Saylor said on X.

Why does payment frequency matter?

The move marks the third change to STRC's payout schedule in under a year. Shareholders already approved moving STRC from monthly to semi-monthly dividends in June. At the time, CEO Phong Le said paying twice a month was intended to stabilize the stock's price, improve liquidity and give holders a faster opportunity to reinvest.

STRC is a variable-rate perpetual preferred stock designed to trade around a $100 par value. It closed down 0.6% at $98.31 on Thursday, per TradingView, after plunging below $75 in June.

That June drawdown prompted a policy response. Strategy introduced a $1 billion repurchase program for its preferred stock, initially prioritizing STRC, and doubled the authorization to $2 billion earlier this month.

What does daily payment do for the 'Digital Credit' platform?

The four securities form the core of what Strategy calls its "Digital Credit" platform. The company said more frequent payments could make the preferreds more attractive and support its ability to raise preferred equity capital for its bitcoin treasury strategy.

"Strengthening our preferred securities would create a competitive advantage for Strategy and increased demand could drive amplification and bitcoin per share," the firm said in a separate statement.

The operational logic is straightforward: preferreds that trade close to par are cheaper funding instruments. Daily dividends shorten the interval between record date and cash in hand, reducing the reinvestment drag that can push a perpetual preferred below its $100 par value — the dynamic that forced Strategy into buybacks over the summer.

What happens next?

Approval at the Oct. 28 meeting requires a majority of the voting power of Strategy's outstanding common stock, according to its preliminary proxy statement. Holders of STRC, STRD, STRF and STRK do not vote on the proposal.

If shareholders approve, the amendments take effect after Strategy files amended certificates of designation in Delaware — meaning the first daily STRC record date of Nov. 1 depends on both the vote and the Delaware filing clearing before month-end.