Strategy Shareholders Approve Daily Dividends on Preferred Stock, With 99.3% in Favor
Strategy shareholders approved an amendment allowing daily dividends on preferred stock, with 99.3% of votes in favor, according to preliminary results.
The Bitcoin treasury company's chairman Michael Saylor announced that shareholders approved the plan at a special meeting on Wednesday. The amendment covers Strategy's four preferred stocks: STRF, STRC, STRK and STRD. Under the new schedule, every calendar day will be a record date, with payment occurring on the next business day.
Implementation Timeline
STRC will be the first to transition, with its first daily record date set for November 1 and payment on November 2. The other three preferred stocks will switch over on January 1, with payment scheduled for January 4. The change still depends on Strategy filing amended terms for each stock.
For record dates falling on weekends or holidays, dividends will be bundled together and paid on the next business day. The Depository Trust Company will treat weekend or holiday record dates as falling on the previous business day, which Nasdaq will also recognize as the ex-dividend date.
Market Impact
Strategy proposed the change last month to help dampen volatility in its preferred shares. For STRC, this means moving from 24 record dates a year to 365. The company has been working to support STRC, which traded at $99.86 on Wednesday, just below its $100 par value.
Last week, Strategy paused its Bitcoin buying for the first time since mid-September and spent $204.9 million buying back STRC instead.
Strategy also faces possible removal from MSCI's widely tracked equity indexes. The index provider finalized a rule this month that treats companies whose balance sheets are dominated by a single asset as ineligible, and will publish the list of affected companies on November 11.
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