Strategy declared daily STRC dividends for every day of November at a 12% annual rate, payable only if stockholders approve the change at an Oct. 28 meeting.
Key Facts
Strategy's board declared daily cash dividends on STRC for every calendar day from Nov. 1 to Nov. 30, totaling $1.00 a share at a 12% annual rate.
The dividends are payable only if stockholders approve daily dividend amendments at an Oct. 28 special meeting and the amended terms take effect by Nov. 1.
If the condition is met, STRC's previously declared Nov. 15 dividend will not be paid, and the company said the daily dividends and the Nov. 15 dividend can never both become unconditionally payable.
Bitcoin (BTC) treasury company Strategy has declared daily dividends on its STRC preferred stock for every calendar day of November at an unchanged 12% annual rate, with the payouts conditional on stockholders approving the switch at an Oct. 28 special meeting, according to a regulatory filing.
The declaration sets out how STRC would move from twice-monthly to daily dividends, a change Strategy has said is designed to support price stability, drive liquidity and grow investor demand.
The board declared the dividends on Thursday for record dates from Nov. 1 through Nov. 30, according to a Form 8-K filed on Friday. Each daily dividend of $0.03 or $0.04 a share is payable on the next business day, and the dividends for November record dates total $1.00 a share.
"The declaration is subject to shareholder approval of the daily dividend amendment on October 28," Strategy wrote on X.
How Daily STRC Dividends Would Replace the Nov. 15 Payout
The daily payouts require two steps, according to the filing. Stockholders must approve the amendments by 5:00 p.m. New York time on Oct. 31, and STRC's amended certificate of designations must take effect by 12:01 a.m. ET on Nov. 1.
If both happen, the STRC dividend declared on Sept. 30, payable on Nov. 15 to holders of record on Oct. 31, will not be paid. If either fails, that dividend will be paid and Strategy expects to keep the current semi-monthly schedule for November, subject to board approval.
"In no event will both the November Daily Dividends and the November 15 Dividend become unconditionally payable," the filing said.
Strategy also said it expects the November daily dividends, if payable, to be treated as non-taxable returns of capital to the extent of a holder's tax basis for US federal income tax purposes.
Strategy to Keep STRC Rate at 12% Until It Nears $100
Management will recommend keeping STRC's rate at 12% until the stock "has demonstrated sustained, healthy trading near $100 per share," the filing said. STRC traded at $99.29 around 15:44 UTC on Friday, according to Strategy's website.
The company proposed daily dividends for STRC and three other preferred stocks in September. The special meeting will consider amendments covering STRC and certain of its other preferred series, which are a form of preferred equity that the corporate treasury firm uses to raise capital.
Strategy said on Monday it had repurchased $192 million of STRC. Rival Bitcoin treasury firm Strive this week priced a preferred stock with daily dividends, payable if declared.
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