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Strategy is trying to turn its STRC preferred stock into something closer to a bitcoin-linked paycheck. In an October 16 SEC filing, the company proposed paying STRC dividends every calendar day starting in November, while keeping the 12% annual rate. The catch is that none of it happens unless shareholders approve the changes at a special meeting on October 28.
What Strategy Is Proposing
Under the plan, holders would collect roughly $0.03 to $0.04 per share each day, which lines up with 12% on a $100 par value. Dividends would keep accruing on weekends and public holidays, with payments arriving on the business day after each record date. When banks are closed, payouts covering several days could be bundled together. The first payment is scheduled for November 2, and the last November payment for December 1.
The board declared the November dividends on October 15, contingent on the vote. Strategy says the daily payments would replace the dividend previously scheduled for November 15 rather than stack on top of it. The company’s total obligation stays the same. Only the frequency changes.
The Conditions
For a November start, the amendments need approval by October 31 and must take effect by November 1. If either step slips, the current arrangement stays, including the November 15 payment. Until the vote and the paperwork are done, this is a plan, not a confirmed payment schedule.
Why Now: The Fight for $100
STRC is trading just under its $100 benchmark. It hit $99.94 on Wednesday, its highest level since May, which was also the last time it traded at $100. Getting close hasn’t been cheap. Strategy spent $368.7 million buying back STRC shares between September 28 and October 11, compared with about $50.2 million on bitcoin over the same stretch.
That gap shows where the company’s priorities sit. Daily dividends look like a second lever, one designed to draw income-seeking buyers rather than relying on Strategy’s own purchases. Management has also signaled that the 12% rate stays until the shares show sustained, healthy trading around par.
STRC already moved from monthly to twice-monthly payouts earlier this year. In September, Strategy said it planned to bring daily payments to four preferred offerings. STRF, STRK and STRD, which currently pay quarterly, are expected to get daily record dates from January 1, 2027, subject to approvals.
Strategy expects the November daily dividends, if paid, to be treated as nontaxable returns of capital for U.S. federal tax purposes, up to each holder’s basis in the shares. Individual treatment will vary, so holders should check with a tax adviser.
The Catch
More frequent payments don’t guarantee a $100 price. Demand, interest rates, perceived risk around Strategy and broader market conditions all play in. The heavy buyback spending also raises a fair question about how long the price support can last, especially with the whole structure tied to a bitcoin treasury the company values at about $69 billion.
The real test is whether STRC can hold near par without Strategy repeatedly stepping in. The October 28 vote decides whether daily dividends launch on time. Trading in the weeks after will show whether they work.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Crypto and blockchain enthusiast.
