Original | Odaily Planet Daily (@OdailyChina)
Author | Wenser (@wenser 2010 )
At 10:00 PM Beijing Time (10:00 AM Eastern Time on October 28), the Special Shareholders' Meeting of Strategy will be held online to vote on whether to amend the designation certificates of the four preferred shares—STRC, STRF, STRK, and STRD—to allow for daily dividend record dates. Voting has been open since the proxy statement was mailed on October 5 and will close at 11:59 PM Beijing Time on October 28.
If approved, STRC will have a record date every calendar day (including weekends and holidays) starting November 1, with dividends paid on the next business day, the first of which falls on November 2, at $0.03 or $0.04 per day, totaling $1.00 per share for November, equivalent to a 12% annualized rate; if not approved, dividends will be paid as originally planned on November 15 at $0.50, and holders cannot receive both types of dividends. STRF, STRK, and STRD, which were originally paid quarterly, will now switch to daily payments, with the first record date set for January 1, 2027, and the first payment falling on January 4, 2027.
In June of this year, Strategy changed the STRC dividend distribution cycle from monthly to biweekly; five months later, as STRC approached its $100 par value, the company plans to increase the frequency to daily. As of October 25, Strategy holds 848,517 bitcoins, with an additional $4.83 billion in reserves (specifically allocated for preferred stock dividends and debt interest) and $242.4 million in available cash.
Can daily dividend payments drive a new round of STRC financing and underlying Strategy shares? This article discusses the adjustment of STRC’s daily dividends for readers’ reference.
The core engine of the "Financing Flywheel," STRC, dropped as low as $71.
As one of the core tools of Strategy financing, STRC has not touched its $100 face value since mid-May. In June, amid extremely pessimistic market sentiment, Bitcoin fell below $60,000, causing STRC to drop to a low of $71.25 (on June 26), its lowest level since listing.
To reverse the stock price decline and improve operational cash flow, Strategy subsequently executed its first BTC sell operation in three years. On one hand, this move alleviated its passive position and no longer constrained it by the market’s previous expectation that “Strategy only buys, never sells.” On the other hand, the BTC sale indirectly demonstrated Strategy’s ability to access diverse funding sources to navigate volatile market conditions. Additionally, this action helped desensitize the crypto market to the notion of “Strategy selling BTC and crashing prices,” making it a multi-benefit move.
Subsequently, as the Strategy purchased more BTC and market conditions improved, the price of BTC, the Strategy’s underlying stock (MSTR), and STRC all rebounded, and the cash flow on the Strategy company’s balance sheet significantly improved—indicating that “the toughest times are behind us.”
As of press time, MSTR shares are trading at approximately $141, and STRC's face value has returned to $99.49;As of October 25, 2026, Strategy holds 848,500 BTC and $5.1 billion in assets.
The probability of STRC returning to a $100 face value by year-end is currently reported at 78%.
Polymarket data shows that the probability of STRC reaching $100 before December 31 this year has risen to 78%; the probability of achieving this by the end of November is currently 66%; and the probability of reaching it by the end of this month is only 9%.
It’s clear that, despite only a $0.50 difference, the prediction market still has little hope that STRC will return to its $100 face value in the short term.
Daily dividend voting is about to begin: MSTR shareholder vote requires support from at least 17% of remaining shareholder voting rights
According to the Strategy Official Voting Page, the proposal requires majority support from all issued common shares' voting rights; abstentions and unvoted shares by brokers are counted as opposed, and preferred shareholders have no voting rights. Only common shareholders registered as of September 25 are eligible to vote: Class A shares carry one vote per share, totaling 402,337,658 shares, and Class B shares carry ten votes per share, totaling 19,640,250 shares, for a combined total of approximately 599 million votes.
According to the DEF 14A Schedule of Ownership previously filed by Strategy with the SEC, Strategy’s chairman, Michael Saylor, currently holds 32.9% of the total voting power. To pass the proposal, which requires a majority, approximately an additional 17.1% of voting support from other shareholders is needed.
It is worth noting that the voting meeting on October 28 will be held virtually; even if the proposal is approved, Strategy must still file the amended Certificate of Designations with the Delaware Secretary of State before it becomes effective; the proxy also includes a proposal authorizing the meeting to adjourn to solicit additional votes if quorum is not met; to successfully execute the first dividend payment on November 2, this must be completed no later than 00:01 Eastern Time on November 1.
The pros and cons of STRC daily dividends: advantageous for stable price impact, disadvantageous for reducing principal risk
As a crucial component of Strategy's "financing flywheel," STRC has a significant impact on stabilizing market confidence, maintaining the MSTR stock price, sustaining fundraising, and continuously purchasing BTC to generate appreciating capital.
Subsequently, if daily dividend payments can be successfully implemented, it will be beneficial for Strategy Inc., STRC holders, MSTR holders, and BTC. On one hand, Strategy can continue to operate its financing flywheel, improve capital efficiency, significantly enhance liquidity, and reduce volatility on ex-dividend dates. Strategy has explicitly stated that this aims to minimize the price disruption caused by dividend accruals, helping STRC remain more closely anchored to its $100 par value, making this preferred stock more akin to a daily settlement cash account. This will attract more investors, thereby thickening the financial safety cushion on Strategy’s balance sheet, lowering financing costs, strengthening the company’s creditworthiness, and providing indirect support to BTC prices.
However, on the other hand, daily dividend payments are not a universal solution—they come with corresponding risks or factors that are difficult to change.
First, the daily dividend distribution process and payment cannot be skipped. Dividends still require periodic declaration by the company’s board of directors and must be supported by legally distributable funds; daily payments do not equate to guaranteed redemption; whether brokers support automatic dividend reinvestment (DRIP) depends on the specific brokerage channel used by each user and does not necessarily imply reduced funding pressure;
Second, daily dividends improve the granularity of cash flow, not the stability of principal. They can mitigate the gaps on monthly ex-dividend dates and dividend-capture trades, but they cannot turn perpetual preferred shares into money market funds. This is evidenced by BTC treasury company Strive switching its dividend frequency from monthly to daily, yet still failing to prevent SATA’s short-term decline. In other words, daily dividends reduce volatility in dividend investing and discourage speculative trading around fixed single-day payout dates; however, they do not eliminate price risk. Whether STRC investors suffer principal losses still depends heavily on Strategy’s creditworthiness, BTC’s price performance, and broader crypto market conditions and sentiment.
Third, daily dividend payments mean that Strategy's cash outflows on its books become more fragmented and frequent, inevitably increasing financial and custodial operational burdens. This is a necessary cost of operating as a public company and difficult to avoid.
Fourth, the capital structure of Strategy itself has seen no significant improvement. Strategy disclosed STRC buybacks of $193 million on October 19 and $205 million on October 26, funds that could otherwise have been used to purchase BTC or retained as cash—this represents the same trade-off within the same pool of capital as preferred stock financing for buying crypto. If the daily dividend voting fails to pass as scheduled, combined with the impact of the Q3 earnings report disclosed on October 29, Strategy’s narrative of “financing BTC purchases—waiting for BTC appreciation—paying dividends from appreciation gains—buying more BTC” will once again face short-term skepticism, undermining investor sentiment and confidence, and ultimately making future fundraising more difficult.
Of course, from an investor’s perspective, if STRC’s par value returns to $100 and it becomes one of the first listed securities to accrue or pay dividends on a calendar-day basis, it could attract more DAT treasury-listed companies to issue preferred shares to diversify their funding channels. This would objectively enhance capital efficiency for both investors and listed companies, stimulate new capital inflows, and bring additional liquidity to the crypto market.
At this point, this “dividend cycle shift,” which has been brewing for nearly six months, carries a sense of “must succeed, cannot fail” for Strategy and Michael Saylor. As for the outcome, we’ll likely know the answer soon.