The short version
- STRC daily dividend approved: Strategy shareholders voted on Wednesday, October 28, to let STRC pay a dividend for every calendar day from November 1, with 99.3% of votes cast in favor on preliminary results.
- The 12% rate stays, so it is still $1 a share for November in pieces of 3 or 4 cents; weekend dividends go ex on Friday and are paid on Monday, and STRF, STRK and STRD follow on January 1, 2027.
- The crew is watching for the filing that makes the new STRC terms effective by November 1, how STRC trades around its $99 to $100 target, and Strategy’s Q3 results on Thursday.
The STRC daily dividend is a go. The MSTR shareholder vote at Wednesday’s special meeting approved the change, so its Stretch preferred stock starts paying a dividend for every calendar day from November 1, weekends and holidays included.
The 8-K filed at 10:28 a.m. ET (14:28 UTC) says the vote cleared the bar on preliminary results. The bar was high: a majority of all outstanding MSTR voting power, not just of the votes cast. Michael Saylor, who holds 32.9% of that power himself, put the yes share at 99.3% of votes cast:
$MSTR shareholders have approved the Daily Dividends amendment. Preliminary results show 99.3% of votes cast were in favor. The amendment enables $STRF, $STRC, $STRK and $STRD to accrue dividends every calendar day. Thank you to all who voted. strategy.com/press/strategy…
What Did Strategy Shareholders Approve?
Shareholders approved Strategy daily dividends for all four of its preferreds: STRF, STRC, STRK and STRD. Each gets a dividend record date on every calendar day. STRC switches first, on November 1. The three fixed-rate preferreds follow on January 1, 2027.
Rates don’t move. The STRC dividend is still 12% a year on the $100 stated amount, so holders still get $1 a share for November, just in pieces of 3 or 4 cents a day. Each one lands on the next business day, starting Monday, November 2. Saylor’s case is that small daily pieces stop the payday price drop: a preferred tends to fall by about the dividend on the ex-date, and 3 cents is a lot easier to absorb than 50.
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How Does the STRC Daily Dividend Work on Weekends?
Weekend dividends are bundled onto Friday. STRC trades on Nasdaq and clears through the Depository Trust Company, and a record date that falls on a Saturday, Sunday or DTC holiday counts as the business day before it. Nasdaq treats that same day as the ex-dividend date.
The filing gives an example with November’s actual amounts:
That makes Friday the day to watch. Because US stocks settle one business day after the trade (T+1), Strategy expects that someone who buys STRC on Friday, November 6 gets none of the three weekend dividends, while someone who sells that Friday still collects all three. So STRC should drop by about three days of dividend, roughly 10 cents, when it goes ex on a Friday. It is still a far smaller drop than the 50 cents twice a month it has now.
Strategy adds that the rules can differ for shares held outside DTC or traded on venues with weekend trading, and tells holders to check with their broker.
What Comes Next for STRC?
One step is left. Strategy still has to file the amended STRC terms and have them take effect by 12:01 a.m. ET on November 1, the condition set in its October 15 dividend declaration. Once that happens, the 30 daily November dividends replace the November 15 payment, which then falls away. The results are preliminary, and the 8-K gives no vote counts yet.
SIDE TRAIL: STRC Daily Dividend: Strategy Shareholders Vote Wednesday on Paying Every Day
STRC barely moved on the news. It traded at $99.70 at the time of writing, inside Strategy’s $99 to $100 target range, and MSTR at $140.10. Last week Strategy bought no Bitcoin but spent $204.9 million buying back STRC, part of its push to hold that range. Bitcoin is at $80,481.
TRAIL MAP: No Strategy Bitcoin Purchase Last Week, While Strive Bought 6,182 BTC for $511M
Strategy reports Q3 results on Thursday, October 29, a day after the vote.
In crypto since 2016. Trades the macro picture and reads the market on the high timeframes.
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