Strategy Gets 99.3% Approval for Daily Dividends — SkimNews
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- Strategy shareholders approved the "Daily Dividends" amendment at a Wednesday special meeting, with preliminary results showing 99.3% of votes cast in favor; chairman Michael Saylor announced the tally.
- STRC becomes the first preferred to accrue dividends every calendar day, rising from 24 record dates a year to 365 in a change Strategy proposed last month to dampen volatility in its preferred shares; STRC's first daily record date is November 1 with payment November 2, while STRF, STRK and STRD start January 1 and pay January 4.
- Strategy's change is not yet final — the amendment still depends on the company filing amended terms for each of the four preferred stocks, according to the SEC filing.
- Depository Trust Company will treat weekend and holiday record dates as falling on the previous business day, the same ex-dividend date Nasdaq will use, so November 6, 7 and 8 record dates are bundled and paid Monday, November 9; a buyer of STRC on Friday, November 6 receives none of the three dividends while a seller that day keeps all three, and Strategy said treatment can differ for shares traded outside Nasdaq or held through some brokers.
- STRC traded at $99.86 Wednesday, just below its $100 par value, after Strategy paused its Bitcoin buying for the first time since mid-September and spent $204.9 million buying back the preferred instead.
- MSCI finalized a rule this month treating companies whose balance sheets are dominated by a single asset as ineligible, and will publish the list of affected companies on November 11; Strategy faces possible removal from the widely tracked indexes.
Why it matters: Record-date mechanics decide who collects: with weekend dates rolled back to Friday, November 6, a buyer of STRC that day receives none of the three bundled dividends while a seller keeps all three. That settlement detail lands on a preferred already trading below par at $99.86 — one Strategy supported with $204.9 million in buybacks.
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