Bitcoin: Strategy wants to pay dividends every day on four securities

The group is preparing an evolution of its dividend policy. The company wants to obtain the agreement of its shareholders to modify the payment schedule of its four preferred shares, including STRC. If the proposal passes, each calendar day will become a record date, with payment on the next business day. This measure brings Strategy closer to a model already adopted by Strive, another bitcoin treasury company. The project comes as STRC seeks to stabilize its price after its drop in June.

Bitcoin : a new payment frequency for four preferred shares

The board of directors of Strategy approved the proposal on Thursday, according to a document filed with the Securities and Exchange Commission. Shareholders will have to vote at an extraordinary general meeting on October 28. The project concerns STRC, STRF, STRK, and STRD, the four securities. The modification would only affect the dividend schedule, without changing their rates or the total amount distributed.

If shareholders approve the project, each day will become a record date for dividends. The corresponding payment will take place the next business day. STRC would open this system, with a payment scheduled for November 2. The other three securities would follow in January, with first payments on January 4.

These changes would become effective after filing the updated certificates governing the preferred shares with Delaware. The proposed schedule creates a different frequency, without modifying rates or the total amount. For holders, the evolution mainly concerns the rhythm of operations. Strategy frames this system within a capital structure built around the bitcoin treasury.

Strive has already adopted daily dividends

The move comes after that of Strive, another bitcoin treasury company. Strive introduced daily dividends on its preferred shares, SATA, becoming the first listed company to adopt this rhythm. In May, the company announced that SATA would pay dividends each business day from June 16. The announced rate then reached 13%.

Strive’s operation differs from the one proposed here. Its model is based on business days to set the relevant dates. The studied project would, on the other hand, make every calendar day a record date. The payment would still be scheduled for the next business day, which distinguishes the schedules.

The data from BitcoinTreasuries.NET show a gap between their reserves. Strive holds 26,355 bitcoins, while Strategy holds 846,000, according to this source. The two companies follow a similar approach around bitcoin. The daily dividends project fits into an environment where preferred shares play a role.

STRC remains marked by its sharp drop in June

The company developed what it calls “digital credit,” with preferred shares intended to produce income through its bitcoin treasury. STRC plays an important role in this organization. However, the security has experienced strong fluctuations this year. In June, it fell below its reference price of 100 dollars.

According to Yahoo Finance data, STRC reached an intraday low of 71.25 dollars on June 26. In the Coin Stories podcast, Phong Le mentioned leverage based on expectations. Some investors had borrowed using bitcoin as collateral to buy STRC. This mechanism increased pressure when the market fell.

When bitcoin price fell, these investors had to add collateral or sell their STRC, according to Phong Le. This mechanism reinforced pressure on the security and contributed to the decline. The executive acknowledged, during a talk earlier this week on Natalie Brunell’s Coin Stories podcast, that the company did not expect such a level of leverage. He presented this episode as a lesson for the future.

Strategy seeks to strengthen STRC stability

Since this episode, the company has been trying to limit the risk of another liquidation with a reserve in US dollars. It has planned a policy that allows the repurchase of STRC below their nominal value of 100 dollars. Phong Le said that Strategy wants to attract more long-term investors. Institutional investors are among the targeted profiles.

This direction comes as STRC approached the zone. The price reaches about 98.41 dollars, with the company aiming for a price between 99 and 100 dollars. The variable dividend rate is currently 12%. The new schedule would not change this rate or the total amount.

The next step depends on the October 28 vote. Approval would open the way for the new schedule, with STRC from November 2, then STRF, STRK, and STRD in January. The system will have to wait for the certificate filings in Delaware. In this context, strategy combines a regular payment frequency with the desire to stabilize its securities around their value.

The rest will therefore depend on the shareholders’ vote and the new certificates. If the schedule is validated, the daily payments will mainly change the dividend frequency. For strategy, this evolution comes after a period marked by STRC movements and leverage effects related to bitcoin. The system will provide a framework for the four preferred shares without changing rates.