Strategy Inc. (Nasdaq: MSTR), the largest bitcoin treasury company, saw its common stock substantially outperform its preferred shares during a recent measurement period, according to commentary from executive chairman Michael Saylor on October 24.
Common shares gained 77.4% from June 26 through October 23, compared with returns ranging from 22.9% to 38.6% across four perpetual preferred stocks. The comparison includes dividend payments without assuming reinvestment.
Preferred Stock Performance
Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) led the preferred offerings with a 38.6% return. The 10.00% Series A Perpetual Stride Preferred Stock (STRD) gained 35%, while 8.00% Series A Perpetual Strike Preferred Stock (STRK) returned 32.6% and 10.00% Series A Perpetual Strife Preferred Stock (STRF) returned 22.9%.
Capital Management Framework
Strategy credited the performance differential to its Digital Credit Capital Framework, adopted June 29, which combines reserve policies, dividend management, securities repurchases, and potential bitcoin sales. The framework initially authorized up to $1 billion in preferred-stock repurchases and a separate $1 billion common-stock program.
The company prioritized STRC repurchases. During October 5-11, Strategy spent $192.4 million buying back STRC shares and acquired 250 BTC for $21.5 million. The following week, October 12-18, brought an additional $193.1 million in STRC repurchases, totaling $385.5 million over two weeks. Strategy expanded its preferred-stock repurchase authorization to $3 billion, leaving approximately $1.16 billion available after also purchasing 267 BTC for $22.1 million.
Shareholder Vote on Daily Dividends
Strategy is seeking shareholder approval to distribute preferred-stock dividends daily rather than on a traditional schedule. Under the proposal, every calendar day would become a record date, with payments generally following the next business day. The amendments would preserve regular dividend rates and total obligations.
Common shareholders are scheduled to vote on the proposal October 28. If approved, implementation dates vary by security: STRC would begin November 1 with payment November 2, while STRF, STRK, and STRD would begin January 1, 2027 with payment January 4, 2027.
