Strategy’s Stretch preferred stock moved to a daily dividend schedule on Sunday, making STRC the first of the bitcoin treasury company’s four Nasdaq-listed preferred series to accrue a payout for every calendar day, weekends and holidays included. The first of the STRC daily dividends, $0.03 a share, has a Nov. 1 record date and is due Monday, Nov. 2.
“Starting today, $STRC dividends go daily,” Strategy said, adding that it has paid every dividend on its so-called Digital Credit securities since they were issued.
What changed for STRC holders
The switch follows a special meeting on Oct. 28, where shareholders approved new certificates of designations for STRF, STRC, STRK and STRD. According to the company’s Oct. 29 filing with the SEC, the proposal passed with 381,373,199 votes for, 2,236,551 against and 444,753 abstentions. The amended STRC certificate took effect at 12:01 a.m. Eastern Time on Nov. 1. The other three series follow on Jan. 1, 2027.
The change is about timing, not money. The filing says it does not raise or cut the total regular dividend on any series, change any dividend rate, or alter Strategy’s overall payment obligations.
For November, STRC carries a 12.00% annual rate on its $100 stated amount, or $1.00 a share for the month. That dollar is now split into 30 daily amounts of $0.03 or $0.04, according to the STRC dividend schedule on Strategy’s website. Each is payable on the business day after its record date, so payments run every business day from Nov. 2 through Dec. 1.
Under the old cadence, STRC paid $0.50 twice a month from July through October. The last semi-monthly period had an Oct. 31 record date and a planned Nov. 15 payment. Strategy said that payment will not be made now that the daily dividends are in force, with the November daily amounts taking its place.
Weekends and holidays get bundled
A payout for every calendar day sounds simple, but U.S. market plumbing still runs on business days. Strategy spelled out the mechanics in an Oct. 28 filing.
- For shares cleared through The Depository Trust Company, a record date that lands on a weekend or DTC holiday is treated as falling on the previous non-holiday.
- Nasdaq generally sets the ex-dividend date on the record date when that is a trading day, or on the prior business day if it is not.
- The company’s own example: dividends with record dates of Nov. 6, 7 and 8 (a Friday, Saturday and Sunday) would all be treated as having a Friday record date and paid together on Monday, Nov. 9. With T+1 settlement, a buyer on Nov. 6 would get none of the three, and a seller that day would still collect all three.
The same bundling shows up in the November schedule around Veterans Day and Thanksgiving, when the Federal Reserve Bank of New York is closed. Strategy also cautioned that entitlement can differ for shares not cleared through DTC or traded on venues that offer weekend trading.
Why Strategy wants 24/7 payouts
Chief executive Phong Le framed the move as groundwork for tokenized markets. “Daily dividends are a natural step toward the tokenized, 24/7/365 financial system,” he said in the company’s third-quarter results release. “Digital Credit is being built for that world, and Strategy intends to lead it.”
There is also a plainer motive. STRC is meant to trade close to $100, and the company has spent heavily to keep it there. Strategy said it had “returned STRC to health” by executing $2.04 billion of repurchases.
Strategy has leaned on its dollar holdings for that support. In the week to Oct. 25, it used $204.9 million of USD Cash to buy back 2,068,459 STRC shares, leaving $956.8 million available under its preferred repurchase program, the company said in its Oct. 26 weekly update. As of that date it held a $4.83 billion USD Reserve and $242.4 million of USD Cash, which it says covers about 3.4 years of preferred dividends and debt interest. It has also sold about $431.8 million of bitcoin this year to fund part of its preferred dividends and STRC buybacks, while still holding roughly 848,517 BTC.
That support has been needed before. In June, AltcoinReporter covered how pressure on STRC raised the prospect of bitcoin sales to defend the dividend stock. STRC closed Friday at $99.13, according to Yahoo Finance data, after briefly dipping below $98 in mid-October.
What to watch next
Monday brings the first payment and, if Strategy keeps to its usual rhythm, its weekly update on bitcoin purchases, share sales and repurchases. Management has said it will recommend keeping the STRC rate at 12.00% until the stock shows “sustained, healthy trading near $100 per share,” so any rate decision for December will be read as a signal on how comfortable the company is with that level.
Leadership is also changing. Chief financial officer Andrew Kang steps down on Nov. 5, with Le taking on principal financial officer duties during the transition and operations chief Reza Virasteh becoming CFO on Jan. 1, 2027. That is the same day STRF, STRK and STRD move to daily dividends. The Block also reported the timetable alongside Strategy’s $19.53 billion third-quarter net income.
FAQ
When does STRC pay its first daily dividend?
The first daily record date is Nov. 1, 2026, and the $0.03-per-share payment is due Nov. 2. Weekend and holiday amounts are paid together on the next business day.
Do STRC holders get more money under daily dividends?
No. Strategy says the change does not alter dividend rates or the total amount payable. In November, the daily amounts add up to $1.00 a share at a 12.00% annual rate.
When do Strategy’s other preferred shares switch?
STRF, STRK and STRD move to daily dividends on Jan. 1, 2027, with their first daily payment scheduled for Jan. 4.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
