Strategy has submitted for shareholder approval a proposal to move four of its preferred shares, including STRC, to a daily dividend schedule, with no changes to rates or total payout amounts. The board of directors approved the initiative on Thursday; a virtual special meeting of shareholders is scheduled for October 28, according to a Friday SEC filing.

Each Calendar Day as Record Date, Payment on Next Business Day

If the amendments are approved, each calendar day will serve as the record date, with the corresponding dividend paid on the next business day. STRC will be the first to transition to the new schedule, with the first daily payment expected on November 2. The STRF, STRK, and STRD series are set to follow in January, with initial payments on January 4. The amendments will take effect after updated preferred share certificates are filed with the State of Delaware.

Difference from the Strive Model

Strategy’s proposal follows a move by bitcoin treasury company Strive, which shifted its SATA to daily payments on business days, starting June 16 at an annual rate of 13%, after previously reporting zero debt in the first quarter. Unlike Strive’s schedule, Strategy’s record date will be every calendar day.

STRC Volatility and Company Measures

In June, STRC fell below its stated amount of $100, reaching an intraday low of $71.25 on June 26, before recovering to around $98.41. According to CEO Phong Le, the pressure was caused by excess leverage among some investors. The company intends to prevent similar reversals by maintaining a dollar reserve and repurchasing STRC when it trades below $100. The current annual rate for STRC is variable at 12%.