Strategy Shifts STRC Preferred Stock Dividends to Daily Payments

Strategy shareholders approved switching STRC preferred-stock dividends from twice-monthly to daily payments, a financing change intended to strengthen demand for the shares and improve the company’s access to capital.

The new schedule is set to take effect Nov. 1. STRC has a 12% annualized dividend rate. Strategy needs the shares to trade at or above their $100 par value to keep issuing them at an economically viable cost, making the preferred stock’s market price central to its financing plans. The $100 figure is the shares’ stated par value.

Last week, Strategy increased the size of its STRC repurchases by 50% to $3 billion. It continued issuing common shares to finance Bitcoin purchases.

In the third quarter, the company posted net income of $19.5 billion and about $21 billion in unrealized gains tied to its Bitcoin holdings.