Key highlights:
- Strategy proposes daily dividend accruals for STRC, STRF, STRD, and STRK, with payments made on the next business day
- Shareholders will vote on the changes at the end of October, with STRC potentially adopting the new structure in November and the other preferred stocks following in January
- Strategy’s preferred stocks ticked higher, with STRC remaining below its $100 stated amount
Strategy has proposed moving four of its preferred stocks to a daily dividend structure as the Bitcoin treasury company looks to improve liquidity and investor demand for the securities.
The proposal covers STRC, STRF, STRK and STRD, with dividends accruing on every calendar day and payments made on the following business day.
Shareholders will vote on the changes
Strategy’s board approved the
The move builds on Strategy’s broader effort to make its preferred securities more attractive to investors. The company previously shifted STRC from monthly to semi-monthly dividend payments. Strategy said that change was designed to stabilize the preferred stock’s price, improve liquidity and give holders faster opportunities to reinvest their dividends.
“Strengthening our preferred securities would create a competitive advantage for Strategy and increased demand could drive Amplication and Bitcoin Per Share,” read a statement.
Strategy now wants to extend the same focus on payment frequency across its four preferred series. The company said the proposed daily record dates are intended to improve price stability, liquidity and demand without changing the underlying economics of the securities.
STRC, STRF, STRK, STRD tick higher after Strategy’s announcement
The four preferred stocks recorded upticks across the board following Strategy’s announcement. According to CoinCodex data, STRC traded at $98.40, rising by nearly 1% as the market swung open.
STRF also recorded an uptick, with market data reflecting a $103.48 price point, a tick above its previous close. Meanwhile, STRK is up by almost 1%, trading at $74.09 at press time, while STRD rose higher to sit at $72.67.
Despite the price spurt, STRC continues to trade below its $100 par value. Strategy has since been focusing on repurchasing STRC stock. Despite a brief period of Bitcoin selling and its current focus on STRC, Strategy still holds a massive 846,000 BTC in its stash.
Source:: Strategy Proposes Daily Dividends for Its Four Preferred Stocks