Strategy Files Proxy to Put STRK (STRK) Preferred on Daily Dividends, Vote Set for Oct. 28

Daily Dividend Proposal Covers STRK (STRK)

Strategy, the bitcoin treasury company formerly known as MicroStrategy, has asked shareholders to approve daily dividend payments on its four U.S.-listed preferred stocks — STRF, STRC, STRK (STRK) and STRD. A preliminary proxy filed on Friday, Sept. 25, would have dividends accrue on every calendar day — weekends and holidays included — with settlement on the following business day and the economics otherwise unchanged. Executive Chairman Michael Saylor announced the plan on X, writing that the proposed changes aim to support price stability, liquidity and demand. A dividend is the cash a company distributes to its shareholders; the switch alters only how often that income arrives, not the total annual amount. STRC currently pays twice a month, while STRF, STRK and STRD pay quarterly, so the move redesigns the servicing of the company's entire income-product line.

announced the plan on Xhttps://x.com/saylor/status/2103456332741521789?ref_src=twsrc%5Etfw

A virtual special meeting is set for Oct. 28, where common stockholders hold the deciding votes. In its statement, the company argued the change would cut reinvestment lag and improve liquidity and market efficiency, while making its digital credit instruments more attractive, easing access to preferred equity capital and — the company argues — deepening trading volume around each share. The proposal arrives at a delicate moment. Strategy slowed its aggressive bitcoin accumulation this year as the asset slid into a bear market, prioritizing balance-sheet defense and even selling holdings under a framework that could release up to $1.25 billion for a dollar reserve, preferred dividends and interest expenses. Last week it bought 950 bitcoins for $75.7 million — its first purchase since August — while its Nasdaq-listed common stock trades roughly 50% below year-ago levels.

Staggered Rollout From November

The filing lays out a staggered rollout. STRC, which carries roughly $9.3 billion in notional value and pays a 12% annual rate on its $100 stated amount, switches first: its last semi-monthly record date is expected Oct. 15, the first daily record date falls on Nov. 1, and the first daily payment follows on Nov. 2. STRF, STRK and STRD would complete their quarterly cycle through a Dec. 15 record date, then begin daily accrual with a first payment on Jan. 4, 2027. Daily amounts are rounded down to the cent and trued up at mid-month and month-end; at an illustrative 12%, a $100 share earns 3 or 4 cents per day. Governance terms are strict: only common holders of record as of Sept. 25 may vote, passage requires more than half of all outstanding voting power, and preferred holders have no vote. Saylor controls 32.9% of that power, almost entirely through Class B shares carrying 10 votes each. Voting opens when the definitive proxy is filed, expected Oct. 5.

The Volatility Argument

Management's case rests on volatility arithmetic. STRC's calendar holds 24 record dates a year today; the proposal lifts all four instruments to 365, an increase Chief Executive Phong Le put at 90 times for the quarterly payers, calling the result the first global security with calendar-day accruals and dividends. When STRC paid monthly, its price slipped about 49 basis points on the day before each dividend; after June's move to semi-monthly payouts, that drop narrowed to roughly 36. The board argues more frequent payments shrink the accrued dividend embedded in each share's price, supporting STRC's aim of trading at or near $100, while steadier month-end marks for fund managers and better haircuts when shares are pledged as collateral in margin trading round out the benefits. Confidence has followed: the June schedule change passed with 99.9% of common votes and 97.5% of STRC holder votes in favor, Strategy has since paid $255 million in STRC dividends, and it doubled its preferred buyback authorization to $2 billion after repurchasing STRC near $97. Readers tracking the market in real time can follow live spot and futures prices on Bybit.

$100 Peg and Vote Odds in Focus

Our read of the preliminary proxy is that Strategy is formalizing a shift already visible on its balance sheet: with bitcoin purchases paused and $2 billion of buyback capacity in place, the preferreds — part of a global cohort of five daily-dividend instruments worth about $15 billion combined — have become the company's funding engine. The vote record favors approval: June's schedule change carried 99.9% of common votes cast, and while Saylor's 32.9% bloc alone cannot clear the majority threshold, it anchors it. Daily accrual should smooth ex-dividend swings and build a deeper liquidity pool around record dates, but it cannot erase credit risk — STRC traded down to $75 in June when bitcoin fell below $60,000. The definitive proxy expected Oct. 5 and the Nov. 1 first daily record date are the next checkpoints.