Strategy Plans Daily STRC Dividends Starting November

Daily Cash Payouts Planned for STRC Holders

BitcoinBTC-2.31% treasury firm Strategy Inc. (Nasdaq: MSTR) has disclosed plans to begin paying daily cash dividends on its STRC preferred shares. The company detailed the proposal in a SEC filing on October 16.

If approved, the new schedule will start on November 2, 2026. Total payouts for November will equal $1.00 per share across the entire month.

Under the proposed plan, shareholders will receive either $0.03 or $0.04 per share each calendar day. Dividends accrue on weekends and holidays, with cash distributed on the following business day.

The first payout is set for November 2, while the final November dividend will be paid on December 1.

Key Conditions and Voting Deadlines

Strategy's board declared the November payments on October 15, but the system needs shareholder approval to move forward. A special shareholder meeting is scheduled for October 28 to vote on the changes.

Approval must happen by October 31, and updated governing documents must take effect by November 1. If conditions are missed, Strategy will keep its current schedule, including a previously announced payout on November 15.

If approved, the new daily payments will replace the November 15 payout rather than add to it.

Maintaining Yield and Stock Target Price

Strategy confirmed that STRC's annual dividend rate will remain at 12% for November if approved. Management intends to keep this rate until shares consistently trade near their $100 par value.

STRC recently traded just above $99 per share after touching $99.94 on Wednesday. That was its highest price point since May.

Past performance of digital assets or historical stock results is not an indication of future performance. Investors can check current market trends at bitkub.com/th/market/BTC.

Understanding STRC and Broader Dividend Plans

STRC is officially known as Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock. It is a $100-par security with no maturity date, marketed as a digital credit product connected to the company's Bitcoin holdings.

This move marks another acceleration in payment frequency. STRC shifted from monthly to twice-monthly dividends earlier this year.

In September, Strategy announced broader plans to bring daily payouts to four preferred stocks: STRC, STRF, STRK, and STRD. STRF, STRK, and STRD currently pay quarterly, with daily payouts expected by January 1, 2027.

Strategy noted that more frequent payments reduce delays between earning dividends and reinvesting them. The goal is to improve liquidity and stabilize share prices without raising total dividend costs.

Buyback Activity and Tax Expectations

The daily dividend proposal comes alongside heavy share repurchases. Strategy spent about $368.7 million buying back STRC shares between September 28 and October 11 to support share prices.

During that same period, the firm spent about $50.2 million purchasing Bitcoin. Strategy currently holds approximately $69 billion worth of Bitcoin in its treasury.

While buybacks helped lift STRC toward $100, market observers have questioned the long-term sustainability of such direct support. Daily dividends offer another route to attract yield-focused investors naturally.

For US federal tax purposes, Strategy expects November daily payouts to qualify as nontaxable returns of capital up to each shareholder's tax basis.