Strategy Wants to Push STRC to $100 With Daily Dividends
Strategy wants to use daily payouts on STRC to keep the price closer to $100. The October 28 vote also affects how its large bitcoin position is financed.
Key Takeaways
- Strategy wants shareholders to vote on daily dividends for STRF, STRC, STRK, and STRD.
- The company mainly wants STRC to stay closer to its stated value of $100; the vote is on October 28.
- STRC trades around $98.65, has an annual dividend of 12%, and Strategy has already bought back about $1 billion in preferred shares.
Strategy is asking shareholders to approve daily dividends on its four preferred stocks listed in the US: STRF, STRC, STRK, and STRD. The company mainly wants to keep STRC closer to its stated value of $100 (€88). The vote is scheduled for October 28. If the plan is approved, the first daily payout will follow on November 2.
STRC Takes Center Stage
The change is not about the dividend amount, but about how quickly the payout accrues and gets paid. Dividends would accrue every calendar day, including weekends and holidays, and be paid on the next business day. So Strategy would keep the regular dividend amounts the same, but hopes that faster payouts will make STRC more attractive for income investors.
STRC already switched from monthly to bimonthly payments in June, but the price has still not returned to $100 (€88) since then. In May, STRC was already below that level, and during the bitcoin sell-off in June, the price fell to about $71 (€62). Right now, STRC is trading around $98.65 (€87), and the annual dividend is 12%.
Buybacks and Market Comparison
Strategy has also spent about $1 billion (€0.9 billion) buying back preferred shares under a $2 billion (€1.8 billion) program. Of that, $174 million (€153 million) was STRC in the week through September 20. The company is trying to bring the preferred shares' price closer to their issue value.
Notably, Strive's perpetual preferred SATA already pays daily dividends at an annual rate of 13% and still trades around $100 (€88). Daily payments are unusual in the preferred stock market, where payouts are usually quarterly and sometimes monthly or bimonthly to attract income investors. There is little empirical research on what daily dividends actually do to price action and investor behavior.
Why This Matters
For European crypto followers, this is especially relevant because Strategy is one of the biggest bitcoin treasury companies. The group holds 846,000 BTC, bought for $63.80 billion (€56 billion) at an average price of $75,416 (€66,100) per coin. Bitcoin was trading around $83,600 (€73,300) on Friday, while MSTR was down 2.15% at around $158 (€139). That makes Strategy's capital structure and the financing of its bitcoin position an important topic for the crypto market outside the US as well.
The broader discussion about discounts on crypto treasury stocks also plays a role here: many of these publicly traded companies still trade below the value of their underlying holdings.
