Strategy Wants Its Preferred Stock Dividends to Accrue 365 Days a Year
STRF, STRC, STRK and STRD would accrue dividends on weekends and holidays, in a move Strategy says will dampen volatility.
Strategy, a Bitcoin treasury company, has proposed a plan to its shareholders seeking approval to convert its four preferred stocks, including STRC, into daily dividend payments. This move, which mirrors a similar decision made by Bitcoin treasury firm Strive, would not alter the dividend rates or the overall dividend payout. The board of directors for Strategy approved the proposal on Thursday, and it is set for a vote by shareholders during a virtual special meeting on October 28.
Upon approval, each day would become a dividend record date, with payments made on the following business day. STRC would be the first to transition to this new schedule, with its initial daily dividend payment anticipated on November 2. The remaining preferred stocks, STRF, STRK, and STRD, would follow in January, with their first payments expected on January 4.
For the amendments to take effect, Strategy must file updated certificates governing the preferred stocks with the state of Delaware. This proposal comes after Strive, another Bitcoin treasury firm, moved its SATA preferred stock to daily dividends in May, becoming the first public company to adopt this model.
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- Strategy seeks shareholder approval for daily preferred stock dividends cointelegraph.com
