Saylor Holds 33% Vote: Needs 17% More for STRC Daily Payouts

Imagine earning a cash dividend in your account every single calendar day of the month. That is the exact vision Strategy Inc. is putting to a shareholder vote.

Strategy shareholders decide on Wednesday, Oct. 28, whether to transform its preferred stock into what the company calls the first security to pay daily dividends.

However, passing this proposal is not a simple majority of votes cast. Not voting at all counts as a vote against the plan.

Executive Chairman Michael Saylor gives the proposal a huge head start with his massive voting power. Still, the company needs retail and institutional investors to show up and bridge the remaining gap.

What Is Strategy Voting On?

The company scheduled a special meeting of stockholders for 10:00 a.m. ET on Oct. 28, 2026. Shareholders face two key items on the ballot.

Proposal 1 seeks to amend the certificates of designation for four perpetual preferred stocks: STRC, STRF, STRK, and STRD. This amendment gives these stocks daily dividend record dates.

A fifth preferred stock series, STRE, is left out of this specific corporate update.

Proposal 2 is a procedural step. It allows the company to adjourn the meeting if it needs more time to solicit additional proxy votes.

Who actually gets to decide this outcome? Only holders of common stock as of the Sept. 25 record date can cast a ballot.

> Interestingly, preferred stockholders—the very investors who would receive these novel daily dividend payments—get no vote on the matter.

The Voting Mechanics: Why Silence Counts as a No

The voting rules for Proposal 1 carry a strict standard. Approval requires an affirmative vote from a majority of all outstanding voting power, not just the votes submitted.

Because of this setup, abstentions and broker non-votes directly act as votes AGAINST Proposal 1.

Every share sitting idle in a brokerage account without voting instructions works directly against Strategy's plan. Advance proxy instructions had to arrive by 11:59 p.m. ET on Oct. 27.

Michael Saylor's Voting Power Breakdown

Michael Saylor provides a powerful base of support. He controls 32.9% of total common voting power, mostly through Class B shares that carry 10 votes each.

Even with Saylor's 32.9% backing, Strategy still needs roughly 17 percentage points of additional voting power from all other common shareholders to clear the 50% hurdle.

• Michael Saylor's Control: 32.9% of voting power
• Needed for Approval: > 50.0% of total voting power
• Remaining Gap: ~17.1% needed from other shareholders
• Impact of Unvoted Shares: Counts as a vote AGAINST

How Would a Daily Dividend Work?

Strategy's board has conditionally declared cash dividends for STRC holders for every calendar day from Nov. 1 through Nov. 30.

Daily payouts would range from $0.03 to $0.04 per share, summing up to $1.00 per share over the 30 days of November. This payout targets an annualized rate of 12.00%.

Each cash payment drops into accounts on the business day immediately following its record date, running from Nov. 2 through Dec. 1. This schedule includes weekend accruals.

It will be the first global security with calendar day accruals, paving the way for the digital transformation of capital markets. — Phong Le, CEO of Strategy Inc.

Strict Timelines and Contingency Plans

This daily distribution plan rests on a strict timeline. If shareholders do not approve the change by 5:00 p.m. ET on Oct. 31, or if the amendment is not effective by 12:01 a.m. ET on Nov. 1, the daily payouts vanish.

If the vote fails, Strategy defaults back to its existing structure. Shareholders receive the standard Nov. 15 dividend instead, as investors cannot collect both payouts.

Meanwhile, the other preferred series—STRF, STRK, and STRD—would pay their scheduled Dec. 31 dividends as normal before transitioning to daily accruals in January 2027.

Why Strategy Is Focused on the $100 Peg

Management states it plans to maintain STRC's 12.00% annual rate until the stock demonstrates sustained trading near its $100 target par value.

STRC closed at $99.16 on Monday, getting close to par value but not quite locking it in.

To support this price floor, Strategy has actively spent cash. Data shows the company has repurchased $2.05 billion of STRC, including buying 2,068,459 shares last week at an average price of $99.06.

During that buyback week, Strategy purchased zero Bitcoin. The company chose to redirect capital to defend its preferred stock price instead of adding to its crypto balance sheet.

Understanding Strategy's Capital Flywheel

The corporate logic behind this move is straightforward. A daily dividend payout makes preferred stock behave less like a standard corporate bond and more like a high-yield cash account backed by a Bitcoin treasury.

When investors view preferred shares as stable cash-like vehicles, the stock tends to trade right at its $100 par value.

When preferred shares trade at par, Strategy can issue and sell new shares efficiently. It then uses those fresh proceeds to buy more Bitcoin, continuing its corporate treasury model.

Maintaining this system is not without challenge. STRC previously dropped to an intraday low of $82.53, illustrating how market volatility can test Strategy's corporate credit machine.

Q3 Earnings Call and Balance Sheet Realities

Strategy reports its third-quarter financial results on Oct. 29, just one day after the critical shareholder vote. Wall Street analysts from Citi, Barclays, and BTIG will join the live Q&A session.

As of Oct. 25, Strategy holds 848,517 BTCBTC-1.38% on its balance sheet alongside $5.1 billion in U.S. dollar cash assets.

This vote takes place in a mixed market environment. Bitcoin's price traded near $79,628 ($80,000 range), putting pressure on broader crypto sentiment.

Despite broader market swings, Strategy's preferred shares have generated cumulative returns between 23% and 39%.

Note: Past performance of digital assets or past performance of an entity does not guarantee future returns or performance.

What Happens Next?

If Proposal 1 passes, the very first daily record date for STRC takes effect on Saturday, Nov. 1, ushering in a brand-new daily payout model.

If the proposal fails due to low participation, Strategy management will face a tough topic during Thursday's earnings call, explaining why its common shareholders did not turn out to vote.

Investors and market observers will watch Wednesday's meeting closely to see if Michael Saylor secures the missing 17% needed to write corporate dividend history.