Strategy Shareholders Approve Daily Dividend Accrual on Four Preferreds

Strategy (NASDAQ: MSTR) shareholders approved the Daily Dividends amendment covering the company's four preferred stock series, with preliminary results showing 99.3% of votes cast in favor, Executive Chairman Michael Saylor announced Wednesday. The amendment allows STRF, STRC, STRK and STRD to accrue dividends every calendar day, including weekends and holidays.

Under the approved structure, dividends accrue daily but are paid on the next business day. Strategy has stated that scheduled dividend rates and total dividend obligations remain unchanged. In operational terms, the change converts the preferred instruments from weekly or monthly accrual schedules into a continuous daily accrual cycle.

The proposal first surfaced on September 25, when Strategy asked holders to attend a special meeting on October 28. At the time, the company said the change "would reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability."

Strategy also framed the amendment as a benefit to common stockholders. The company said it "believe[s] these enhancements can also benefit our common stockholders by increasing the attractiveness and utility of our Digital Credit instruments, supporting our ability to access preferred equity capital efficiently and expanding the capital markets toolkit we use to execute our Bitcoin Treasury strategy."

What does the amendment change for holders?

The mechanics are incremental rather than transformational. Dividend rates do not move; total obligations do not grow. What changes is timing — accrual now runs seven days a week rather than pausing over weekends and market holidays, and payment follows on the next business day.

For STRC holders, the practical effect compounds. Shareholders approved moving STRC to semi-monthly payments in June, and the new amendment builds on that precedent. STRC pays a variable rate the company can change at its discretion; its rate for the month ended June 30, 2026 was 11.50%, according to Strategy's quarterly report filed with the SEC. STRC is designed to help Strategy raise capital through a preferred stock offering targeting a stable $100 price and a variable dividend yield, with proceeds deployed into Bitcoin regardless of short-term price movements — in effect a dollar-cost-averaging mechanism for the treasury.

Timing now depends on board action. If the board approves the change and required filings are completed, the first STRC record and payment dates would fall on November 1 and 2, 2026. For STRF, STRK and STRD, the first record and payment dates would be January 1 and 4, 2027. Those dates also depend on operational readiness. Final vote certification will come in a company filing.

A backdrop of slower Bitcoin accumulation

The vote lands during a period in which Strategy has slowed Bitcoin purchases. The company sold some holdings earlier this year to fund preferred dividends, interest payments and repurchases, according to prior disclosures. Its common stock is down roughly 50% over the past year, though it has risen by a figure approaching 1,000% since Strategy began buying Bitcoin in 2020.

Earlier this week, Strategy said it paused Bitcoin purchases for the prior week and held its treasury at 848,517 BTC, acquired for $64.02 billion at an average price of $75,446 per Bitcoin. The company spent $204.9 million repurchasing STRC preferred stock while retaining a $4.83 billion cash reserve.

A competitive precedent already exists

Strategy is not the first Bitcoin-treasury company to move toward daily distributions. Strive pays cash dividends on its Variable Rate Series A Perpetual Preferred Stock (SATA) every business day, a schedule that began on June 16 after the company moved from monthly payments.

What does this change for practitioners? Daily accrual tightens the link between Strategy's preferred instruments and short-duration credit markets, where interest accrues continuously — a structural alignment the company argues will keep its cost of preferred capital efficient even as purchase activity slows. The next concrete checkpoint is board certification of the vote and the operational launch window: STRC first, in early November 2026, with the remaining three series following at the start of January 2027.