Strategy News: Daily Dividends Approved as Bitcoin Buying Pauses

Strategy news drew attention after shareholders approved daily dividend record dates for four preferred securities on Oct. 28. The changes cover STRC, STRF, STRK and STRD, subject to final implementation.

Meanwhile, Strategy disclosed $204.9 million in STRC repurchases during the previous week. Its Bitcoin holdings remained unchanged as the company focused on preferred-share capital management.

Strategy Shareholders Approve Changes to Four Preferred Stocks

Strategy secured the required votes during a special shareholder meeting on October 28. The company disclosed the results in a filing and announced approval of amendments to the certificates of designation for its four preferred securities.

Common shareholders who qualified to vote as of September 25 considered the proposals. The amendments allow Strategy to replace existing dividend record dates with daily dates once the company files the revised certificates and they take effect.

Strategy introduced the proposal in September as part of a broader effort to change how its preferred stocks distribute dividends. The latest vote changes the timing of dividend entitlements rather than the stated annual dividend rates.

Daily Record Dates Include Market Holidays

The new calendar will include Saturdays, Sundays and stock market holidays. Dividend processing, however, will continue to follow the trading and settlement rules that apply to each security. Shareholders, therefore, should not expect a separate deposit for every calendar day.

For shares that clear through the Depository Trust Company, a record date that falls on a weekend or a clearing holiday will shift to the preceding business day. Nasdaq generally applies the same approach to ex-dividend dates, which establish when a buyer no longer qualifies for a declared dividend.

Strategy illustrated the rules with November 6, 7, and 8. All three daily dividends would carry Friday, November 6, as their record date and ex-dividend date. The company expects the corresponding payments to reach eligible holders together on Monday, November 9.

Under the T+1 settlement cycle, someone who buys shares on November 6 would not qualify for those three dividends. A shareholder who sells on that Friday would retain the entitlement. Different trading venues or clearing systems may apply different procedures, especially when they support weekend transactions.

STRC Begins in November as Other Shares Follow

STRC will become the first of Strategy’s four preferred securities to use daily dividend record dates. Shareholders approved a twice-monthly schedule for STRC in June, with record dates on the fifteenth and final day of each month. The new arrangement replaces the schedule from November.

STRF, STRK and STRD will retain their current schedules through December before adopting daily dates at the start of 2027. STRC currently carries a variable annualized dividend rate of 12%. STRF and STRD have stated annual rates of 10%, while STRK carries an 8% rate.

The amendments do not automatically increase total dividend obligations or remove existing shareholder protections. The strategy board or an authorized committee must still declare dividends, and the company must have sufficient legally available funds to make the payments.

Strategy Continues STRC Repurchases

The vote follows another week of STRC repurchases. Strategy bought back 2,068,459 STRC shares for approximately $204.9 million during October 19 through October 25. The company reported no Bitcoin purchases or sales during that period.

Strategy held 848,517 BTC at the end of the reporting period. Its aggregate acquisition cost stood at $64.02 billion, including expenses. The company funded the STRC buybacks from available dollar cash, leaving a cash balance of $242.4 million.

A separate reserve for preferred dividends and debt interest stood at about $4.83 billion. Strategy also increased its authorization for preferred stock repurchases from $2 billion to $3 billion on October 19, providing additional capacity for future transactions.

MSTR stock traded at $145.16 on October 28, gaining 2.66% from its previous close of $141.40. Shares moved between $138.67 and $145.28 during the session as Strategy shareholders approved daily dividend record dates for STRC, STRF, STRK and STRD.

This article is for informational purposes only and does not constitute financial advice. Preferred stocks and cryptocurrency-linked equities involve market risks, including potential capital losses. Investors should review official disclosures before making financial decisions.