Strategy shareholders will vote on Wednesday, October 28, on whether to implement daily dividend payments for STRC, which the company describes as the first security to pay dividends every calendar day. The special meeting begins at 10:00 a.m. ET.
The vote requires approval from holders of a majority of all outstanding common stock voting power. Notably, abstentions and broker non-votes count as votes against the proposal. This means that shares held passively in brokerage accounts work against the plan unless explicit voting instructions are submitted by 11:59 p.m. ET on October 27.
Michael Saylor, Strategy's largest shareholder, controls 32.9% of total voting power through Class B shares that carry 10 votes each. The company needs approximately 17 additional percentage points of voting power from other shareholders to reach the required majority.
Dividend Structure and Mechanics
If approved, STRC holders would receive daily cash dividends throughout November at a 12% annual rate, totaling $1.00 per share. Each daily payment would be either $0.03 or $0.04 per share, with record dates from November 1 through November 30 and payments processed on business days from November 2 through December 1.
For the plan to take effect, shareholder approval must be secured by 5:00 p.m. ET on October 31, and the amended certificate must become effective by 12:01 a.m. ET on November 1. If these conditions are not met, a previously declared dividend scheduled for November 15 would be paid instead.
The other preferred stocks included in Proposal 1—STRF, STRK, and STRD—would continue their December 31 payment schedule under current rules and transition to daily accruals starting in January 2027. STRE is excluded from the amendments.
Background and Current Holdings
Strategy currently holds 848,517 BTC and $5.1 billion in U.S. dollar assets as of October 25. The company plans to report third-quarter results on October 29, the day after the vote, with participation from analysts at Citi, Barclays, and BTIG.
Strategy has repurchased $2.05 billion worth of STRC shares to support the stock price, including 2,068,459 shares last week at an average price of $99.06. STRC closed at $99.16 on Monday, just below the $100 per share level that management has identified as a target for sustaining the 12% dividend rate.
Voting Details
Only common stockholders of record as of September 25 are eligible to vote. Preferred shareholders, who would actually receive the daily dividend payments, have no voting rights on the proposal.
