Michael Saylor is trying to imitate SATA, which in turn imitated Strategy. If the vote passes, dividends will be paid daily starting in November.

Strategy has filed an 8-K form with the SEC, announcing its intention to switch to a daily distribution of dividends linked to its preferred shares. Currently, the group offers dividend payments on STRC every two weeks. If shareholders approve the move, Stretch will match the payment schedule offered by SATA, a comparable product offered on the market by Strive.

STRC, the main preferred share issued by Michael Saylor’s company, has been trading below $100 for some time—the parity price at issuance. Until the price returns to $100, the group will not be able to issue new shares to raise capital for investment in Bitcoin.

Proposal to align with Strive’s SATA

The proposal would make Strategy’s STRC and Strive’s SATA identical, at least in terms of how they operate. SATA, however, pays a higher dividend—14% annually. The request will require a shareholder vote, but it is not expected to face significant resistance.

The final proxy will be filed with the SEC on October 5, when shareholder voting will open and continue through October 28. If the outcome is positive, STRC’s new daily payments will begin as early as November 1. Also subject to shareholder approval, STRF, STRK and STRD will switch to a daily dividend payment schedule from January 1 to January 4, 2027.

Why make such a change?

Strategy proposes paying dividends on all of our preferred shares in the United States, with dividends accruing every day, including weekends and holidays, and being paid the following day. If approved and adopted, this measure will reduce reinvestment lag, improve liquidity and market efficiency, and increase price stability.

Strategy proposes paying dividends on all of our preferred shares in the United States, with dividends accruing every day, including weekends and holidays, and being paid the following day. If approved and adopted, this measure will reduce reinvestment lag, improve liquidity and market efficiency, and increase price stability.

This is what can be read in Strategy’s proposal filed with the SEC. The ball is now in the shareholders’ court, as they will have to assess and vote on the merits of the proposal. It is highly unlikely that shareholders will oppose this change.

STRC price

STRC will open the last session of the week at $98.31, with the stock being affected by the particular situation developing in U.S. bonds, which is influencing the entire functioning of the credit market. Although these are not direct credit products, STRC shares respond to the same dynamics.

For now, Strategy does not appear to be planning an increase in the annual dividend. SATA, a comparable product issued by Strive, pays 2% more annually, also with daily payments.