Strategy shareholders are voting on whether the company can move four preferred stock classes toward daily dividend record dates, a change that would begin with STRC as soon as Nov. 1 if the proposal passes and the required Delaware filing is completed on time.
The online special meeting is scheduled for 10 a.m. Eastern on Oct. 28. Shareholders who held Strategy common stock as of Sept. 25 can vote on amendments covering STRC, STRF, STRK and STRD. Remote voting is due by 11:59 a.m. Beijing time on Oct. 28, shortly before the meeting begins.
The immediate focus is STRC, Strategy’s variable-rate preferred stock. Under the proposed amendment, every calendar day—including weekends and holidays—would become a dividend record date from Nov. 1. Payments would be made on the following business day, with the first scheduled payment set for Nov. 2.
Strategy’s published schedule indicates daily payments of either $0.03 or $0.04 per STRC share during November, totaling $1.00 per share for the month. The company describes that amount as equivalent to a 12% annualized dividend rate based on STRC’s $100 stated value.
If shareholders reject the amendments, STRC would remain on its current schedule, with a $0.50 per-share payment due on Nov. 15. Holders would receive one format or the other rather than both.
Filing deadline will determine whether the nov. 2 payment proceeds
A shareholder vote alone would not activate the new payout structure. Strategy would also need to file amended certificates of designation with the Delaware Secretary of State before the changes can take effect.
For the company to meet its stated Nov. 2 payment timetable, that filing would need to be completed before 12:01 a.m. Eastern on Nov. 1. The timing creates a narrow operational window between the vote, the formal corporate filing and the first proposed daily record date.
The amendments would apply differently across Strategy’s preferred securities. STRF, STRK and STRD were designed around quarterly dividends, and their first daily record date would not arrive until Jan. 1, 2027. The associated payment would be scheduled for Jan. 4, 2027, because New Year’s Day is a market holiday.
The proposal extends an earlier effort to make STRC’s income schedule more frequent. In June, Strategy shifted STRC from monthly dividends to two payments per month. A daily record-date structure would make the security’s payment mechanics resemble a cash-management product more closely than a conventional quarterly preferred share, although distributions would remain subject to board action and available legally distributable funds.
That condition limits the certainty implied by the word “daily.” The board would still need to declare dividends periodically, and Strategy could only make payments from funds legally available for distribution under applicable corporate law. The amendment would create the framework for daily record dates rather than an unconditional obligation to distribute cash every day.
Dividend reinvestment would also remain dependent on a holder’s brokerage arrangement. Strategy’s materials indicate that participation would depend on whether a broker or custodial channel offers dividend reinvestment plan, or DRIP, access for the security.
Saylor’s voting position gives management a substantial base
Approval requires a majority of the total voting power of Strategy’s outstanding common shares. Abstentions and broker non-votes count against the proposal, raising the practical threshold for management because uncast or uninstructed votes do not simply disappear from the tally.
Preferred shareholders cannot vote on the amendments. The eligible electorate consists of Strategy’s Class A and Class B common shareholders of record on Sept. 25.
Strategy’s proxy materials list 402,337,658 Class A shares, carrying one vote each, and 19,640,250 Class B shares, carrying 10 votes each. That produces roughly 599 million votes in total.
Chairman Michael Saylor controls 32.9% of that voting power, according to the proxy. His position gives the proposal a large starting bloc, but Strategy would still need support representing roughly 17.1% of the total voting power from other shareholders to clear the majority threshold.
The proxy also includes a proposal allowing the meeting to be adjourned if enough votes are not available. Such an adjournment would give Strategy more time to solicit proxies rather than treating an initial shortfall as a final defeat.
STRC has traded below its $100 stated value for months
The vote arrives with STRC trading close to, but below, its $100 stated value. The security was priced at about $99.49 at the time referenced in the materials, while Strategy’s common shares, which trade under the MSTR ticker, were near $141.
STRC has not consistently traded at its $100 par value since mid-May. On June 26, it fell to $71.25, its lowest level since listing. That decline came during a period when Bitcoin dropped below $60,000, underscoring how Strategy’s preferred securities can be affected by the market’s assessment of the company’s Bitcoin-heavy balance sheet and its ability to support dividend obligations.
Polymarket pricing cited in the materials placed the probability of STRC touching $100 by Dec. 31 at 78%, with a 66% probability assigned to reaching that level by the end of November. The probability of reaching $100 by the end of October stood at 9%. Those contracts reflect traders’ expectations rather than a forecast from Strategy or a measure of the security’s intrinsic value.
Reserve and repurchases frame the capital-allocation question
Strategy reported holding 848,517 Bitcoin as of Oct. 25, along with a $4.83 billion reserve designated for preferred dividends and debt interest, plus $242.4 million in available cash. A separate figure disclosed for the same date referred to approximately 848,500 BTC and $5.1 billion in assets, reflecting a rounded presentation of the company’s holdings and financial resources.
The dividend reserve is central to how traders may assess the proposal. A more frequent payout schedule could make STRC’s cash-flow profile easier to follow, particularly for holders seeking regular income. It does not by itself require Strategy to permanently segregate all reserve funds or prohibit future Bitcoin purchases; those decisions remain linked to corporate cash needs, board decisions and the company’s financing plans.
Strategy also disclosed STRC repurchases totaling $193 million on Oct. 19 and $205 million on Oct. 26. The company said those repurchases drew on cash that could otherwise have been used to acquire Bitcoin or retained on the balance sheet.
That trade-off places the special meeting within a broader capital-allocation debate. Strategy has built its corporate identity around accumulating Bitcoin, while its expanding range of preferred securities creates recurring obligations to holders who prioritize dividends, redemption terms and price stability. The daily record-date proposal would add a more granular distribution structure to that balance without changing the company’s underlying exposure to Bitcoin.
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