MicroStrategy has proposed changes to how dividends accrue and pay on its preferred securities—STRF, STRC, STRK, and STRD—moving from monthly, semi-monthly, or quarterly schedules to daily accruals.
Under the proposal, dividends would accrue every calendar day, including weekends and U.S. market holidays, with accumulated amounts paid on the next business day. The company characterizes this as an evolution of its "digital credit" products.
Frequency of Dividend Record Dates
For STRC, the change would mean moving from 24 record dates annually to 365 (or 366 in leap years). STRF, STRK, and STRD would shift from four quarterly record dates to daily accruals, representing approximately 15 times more frequent accruals for STRC and 90 times more for the other three preferred securities.
Price Stability Goals
MicroStrategy aims to use daily dividend accruals to reduce price volatility and improve liquidity. For STRC specifically, the company plans to maintain the price near its $100 par value through share sales above $100 and buybacks below $100.
The company previously shifted STRC from monthly to semi-monthly dividends, which reduced ex-dividend price drops from 49 to 36 basis points. MicroStrategy expects daily accruals could further reduce volatility, though this outcome is not guaranteed.
Implementation Timeline
The proposal requires shareholder approval. If approved, STRC would begin daily accruals on November 1, 2026, with the first payment on November 2. STRF, STRK, and STRD would switch on January 1, 2027, after completing their Q4 2026 dividend cycle.
