The short version
- STRC daily dividend vote: Strategy holds a special meeting on Wednesday, October 28, at 10:00 a.m. ET (14:00 UTC) on paying STRC a dividend for every calendar day from November 1, first payment November 2.
- The 12% rate doesn’t change, but the vote needs a majority of all MSTR voting power: Saylor has 32.9%, and every share that doesn’t vote counts as a no.
- The crew is watching the result, whether STRC holds its $99 to $100 target range once payouts shrink to about 3 cents a day, and Strategy’s Q3 results on Thursday.
The STRC daily dividend is one vote away. Strategy holds a special meeting on Wednesday, October 28, at 10:00 a.m. ET (14:00 UTC), and if it passes, its Stretch preferred stock pays a dividend for every calendar day from November 1, weekends and holidays included.
Michael Saylor says it would be the first security in the world to do that. The money doesn’t change, though. So why hold a vote at all, and why are MSTR holders the only ones voting on it?
Strategy CEO Phong Le posted what November would look like:
If approved, $STRC will start paying daily dividends one week from today. It will be the first global security with calendar day accruals, paving the way for the digital transformation of capital markets.
What Is Strategy’s STRC Daily Dividend Plan?
Every day becomes a record date, and the dividend lands the next business day. The rate stays at 12% a year on STRC’s $100 stated amount, so holders still get $1 a month, just in pieces of about 3 or 4 cents a day. Friday, Saturday and Sunday are all paid on Monday.
STRC goes first: record date November 1, first payment November 2. The other three Strategy preferred stock series, all fixed-rate, follow on January 1, 2027, after their last quarterly payment on December 31. The proxy statement says the change does not touch any rate or the total Strategy owes.
Sponsored · Affiliate link
Save 20% on fees trading on WEEX
Base Camp may earn a commission if you sign up. It never affects what we write.
Who Votes on the STRC Daily Dividend, and What Does It Take to Pass?
This is an MSTR shareholder vote: only holders who owned the common stock on September 25 can take part. People who own STRC itself get no say.
The bar is high. Proposal 1 needs a majority of all outstanding voting power, not just of the votes cast, so a share that doesn’t vote counts as a no. Strategy says it plainly in its how-to-vote video: “Not voting counts as a no.” Brokers can’t vote shares for clients on this one either.
Saylor starts with a big head start. His Class B shares carry 10 votes each, giving him 32.9% of the voting power. On the record date there were 402.3 million Class A shares and 19.6 million Class B shares, so about 598.7 million votes in total. That means roughly one in four of the other shares has to vote yes.
Online voting closes at 11:59 p.m. ET tonight (03:59 UTC Wednesday). If the votes fall short, a second proposal lets Strategy adjourn the meeting and keep asking.
Why Is Strategy Moving STRC to Daily Dividends?
The STRC daily dividend is meant to stop the price drop on payday. A preferred stock tends to fall by about the dividend on the ex-date: 50 cents for STRC twice a month, $2.50 for the quarterly ones. “If we pay a one penny dividend, it might trade down one penny,” Saylor said in a talk Strategy filed on October 19.
He also gave the credit to a rival. Strive’s SATA preferred went to daily dividends first, and Saylor said its turnover was three times STRC’s. Strategy’s version goes further: every calendar day, so a tokenized STRC has a reason to trade on a Sunday too.
The bigger goal is keeping STRC at $100. Strategy’s stated aim is $99 to $100 over time, after STRC fell to about $74 in late June. Since then it has spent about $2 billion buying STRC back, $205 million of it last week, money that didn’t go into Bitcoin.
SIDE TRAIL: No Strategy Bitcoin Purchase Last Week, While Strive Bought 6,182 BTC for $511M
What Happens After the Vote?
If it passes, Strategy files the new terms and STRC’s daily payments start on Sunday. If it fails, the STRC dividend keeps coming on the 15th and the last day of the month; the November 15 payment is already declared as a fallback.
STRC closed Monday at $99.17, inside the target range, and MSTR at $139.82. Bitcoin is at $80,249 at the time of writing. Strategy reports Q3 results on Thursday, a day after the vote.
TRAIL MAP: Strategy Break-Even Price: Bitcoin Sits Just 6.8% Above $75,446
In crypto since 2016. Trades the macro picture and reads the market on the high timeframes.
More from TheCryptoMonk →
