Strategy Wins Vote to Pay Daily Dividends on STRC, STRF, STRK and STRD

Strategy Inc (NASDAQ: $MSTR) said stockholders have approved changes that will let its four bitcoin-funded preferred stocks pay dividends every day, with the variable-rate STRC switching on Nov. 1 and the others following Jan. 1, according to a filing with the U.S. Securities and Exchange Commission.

The company announced the result Wednesday after a special meeting of stockholders, based on preliminary voting results. The vote covers STRC, STRF, STRK and STRD. Strategy said the change remains subject to the filing and effectiveness of the amended certificates of designations.

The move turns what are now twice-monthly payments on STRC, and quarterly payments on STRF, STRK and STRD, into dividends that accrue every calendar day, including weekends and holidays. The company has framed the shift as making the securities behave more like cash-like income, similar to how a money market account accrues interest. Strategy has said the amendments do not change any dividend rate or the total amount payable, only how often dividends are paid.

STRC is the largest of the four. It pays an annual rate of 12% on a $100 stated amount, or $0.50 per semi-monthly period, and the company has said management will recommend keeping that rate until the stock trades near $100 on a sustained basis. Strategy put STRC’s market value at about $9.0 billion as of Oct. 5. STRF and STRD carry fixed 10% dividends, and STRK carries 8%.

Dividends on all four are paid only when declared by the board from legally available funds.

Only holders of Strategy’s common stock as of Sept. 25 could vote at the meeting. Preferred holders had no vote.

Shares of Strategy (NASDAQ: MSTR) are currently trading at $139.67 while STRC (NASDAQ: $STRC) stock is priced at $99.77.