Strategy Wants Its Preferred Stock Dividends to Accrue 365 Days a Year — SkimNews
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- Strategy filed a preliminary proxy proposing 365-day calendar accrual on STRF, STRC, STRK and STRD, with dividends paid the next business day and economics otherwise unchanged; shareholders vote October 28.
- STRC would switch first with a November 1 record date and November 2 payment, while the other three finish the quarter on the old schedule and switch January 1.
- Michael Saylor argued the move shortens duration and cuts volatility, noting STRC's pre-dividend day price drop fell from roughly 49 basis points under monthly payments to roughly 36 basis points after June's semi-monthly switch.
- Phong Le said STRC's record dates would jump from 24 to 365 and quarterly payers' frequency would rise 90x, calling it "the first global security in the world with calendar day accruals and dividends."
- Only five securities globally would have daily dividends with a combined about-$15 billion market value; 97.5% of STRC holders and 99.9% of common shareholders approved the prior semi-monthly change in June.
- Strategy bought $139 million of STRC this month while pausing Bitcoin purchases, raised $2 billion selling MSTR for a dollar reserve, and has a framework allowing up to $1.25 billion of Bitcoin sales to service preferred obligations.
Why it matters: If approved, the four preferreds would become the only securities anywhere paying on 365-day calendar accruals — a structural redesign Le directly links to already-narrowing pre-payment price swings (down from roughly 49 bps to 36 bps at semi-monthly) and potentially easier institutional pledging as collateral.
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