Strategy’s STRC plan could bring 365 dividend record dates – Details

After making a comeback by adding more Bitcoin [BTC] to its treasury, Michael Saylor’s Strategy is proposing to change how dividends are accrued and paid on its preferred securities—STRF, STRC, STRK, and STRD.

With this change, Strategy wants to move from monthly, semi-monthly, or quarterly dividend schedules to a system where the dividend accrues every calendar day, including Saturdays, Sundays, and U.S. market holidays.

The accumulated amount would then be paid on the next business day, which Strategy refers to as the next evolution of its “digital credit” products.

What is this proposal all about?

Additionally, the proposal aims to make Strategy’s preferred securities more like liquid cash/yield instruments by using daily dividend accruals to reduce price volatility, improve liquidity, and potentially boost demand.

For STRC, Strategy aims to keep the price near its $100 par value through share sales above $100 and buybacks below $100.

This came after the company shifted from monthly to semi-monthly dividends, which reduced ex-dividend price drops from 49 to 36 basis points. And further expects daily accruals could further reduce volatility, though this is not guaranteed.

However, if at all this happens, STRC would move from 24 record dates a year to 365, or 366 in leap years, while STRF, STRK, and STRD would shift from four quarterly record dates to daily accruals.