Oct 28 Vote: Will STRC Shift to Daily Dividend Payouts?

Strategy has scheduled a special shareholder meeting for 10:00 AM ET on October 28, placing a significant proposal directly in the hands of its common stockholders.

The Proposal on the Table

Shareholders will vote on amending the designated certificate terms for four perpetual preferred stock series: STRC, STRF, STRK, and STRD. The key change would authorize the setting of a daily dividend record date, enabling a transition to daily distributions. A separate proposal grants the board authority to adjourn the meeting if necessary to solicit more votes.

Approval requires a majority of the voting power of all outstanding common shares. Abstentions and broker non-votes will count as votes against the proposal. Only common stockholders of record as of September 25 are eligible to vote, with preferred holders excluded. The deadline for submitting voting instructions in advance is 11:59 PM ET on October 27.

The Voting Power Landscape

Influential investor Michael Saylor controls approximately 32.9% of the voting power. For the proposal to pass, supporters still need to secure an additional ~17 percentage points of support from other shareholders, making Saylor's position and outreach efforts pivotal.

The New Dividend Plan: How It Would Work

If approved, STRC would implement a daily dividend pilot throughout November.

  • Rate: Dividends would accrue at an annualized rate of 12%.
  • Total Payout: A cumulative $1.00 per share would be distributed over the month.
  • Payment Schedule: Payouts would occur on the first business day following each daily record date, including weekends.

Should the proposal fail to gain approval by 5:00 PM ET on October 31, STRC will revert to its original schedule with a single dividend payment on November 15.

Market Context and Recent Activity

STRC closed at $99.16 on Monday. The company continues its share repurchase program, having bought back a total of $205 million worth of shares to date. Last week, it repurchased 2,068,459 shares at an average price of $99.06. Notably, the company did not acquire any Bitcoin during the same period. Strategy is set to release its Q3 earnings report on October 29, adding another layer to this pivotal corporate week.