Strategy Unveils Daily Dividend Plan for STRC at 12% Annualized Rate
Key Summary
Strategy Inc has proposed a daily dividend plan for its Variable Rate Series A Perpetual Stretch Preferred Stock, STRC, with a 12% annualized rate, pending approval from common stockholders. The plan aims to stabilize the stock price, which has traded below the $100 par value since May 2026. If approved, the daily dividend payments will replace semi-monthly payments, with the first payment expected on November 2, 2026.
What is STRC?
Strategy Inc wants to pay some of its investors every single day. On October 16, 2026, the company said in an SEC 8-K filing that it would conditionally declare daily cash dividends on its Variable Rate Series A Perpetual Stretch Preferred Stock, better known by its ticker, STRC.
Conditions for Daily Dividends
The daily dividend plan rests on two conditions. First, common stockholders must approve an amendment that allows “daily dividends” at a special meeting set for October 28, 2026, at 10:00 a. m.
Second, the amended certificate has to be filed in time, by November 1. If both boxes get checked, Strategy expects the first daily payment to land on November 2, 2026.
Payout Structure
The total payout for November does not change under either scenario. Right now, STRC pays semi-monthly dividends of $0.50 per share, which adds up to the same $1.00 for the month.
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Tax Implications
The dividends, if declared, are expected to be treated as non-taxable returns of capital for shareholders, up to their tax basis.
Market Context
Strategy is the largest corporate holder of Bitcoin. The company, formerly known as MicroStrategy, uses instruments like STRC to raise capital for Bitcoin purchases, while avoiding significant dilution of its common stock.
Approval Process
The amendment needs approval from common stockholders, not just preferred holders, at the October 28 meeting. Even with a yes vote, the amended certificate must be filed by November 1 for the daily schedule to kick in on time, leaving a short window between the meeting and the first payment.