Strategy Inc. executive chairman Michael Saylor has outlined how the company manages cash, financing costs, and shareholder rights to sustain dollar income while accumulating bitcoin. In a bitcoin income model published on September 29, Saylor emphasized that while bitcoin itself pays no coupon, Strategy pays dividends under the terms of its securities.
The company uses bitcoin as its core capital, employing financing and cash reserves to issue shares that pay dollar funding. This capital can be raised by selling new shares or selectively selling holdings. Strategy keeps dollars reserved for dividends and debt interest separate from cash available for investment, ensuring that money committed to payouts is not simultaneously counted for purchases or buybacks.
Strategy's financing structure provides two distinct investment paths. Common shares under the MSTR ticker offer greater exposure to bitcoin price fluctuations, while STRC preferred stock, known as Stretch, targets dollar income and reduced price volatility. STRC ranks ahead of common shares for dividends and liquidation proceeds. Stretch currently carries a 12% annualized rate with cash paid twice monthly, an arrangement documented in a September 1 filing with the Securities and Exchange Commission.
To manage STRC, Strategy balances funding against obligations. Issuing shares above their $100 stated value raises money, whereas repurchasing shares below that price can eliminate future dividends at a discount. Buybacks remain discretionary and offer no guaranteed price floor.
On September 25, the company proposed shifting to dividends that accrue every calendar day, with payments generally issued the next business day. Shareholders are scheduled to vote on the daily dividend amendments on October 28. If approved, STRC's first daily record date would be November 1, with payments beginning November 2. Additional securities—STRF, STRK, and STRD—are slated to begin daily record dates on January 1, 2027.
