Bitcoin Treasury Dividends: Strategy's Move to Daily Payouts

Strategy, the software company turned bitcoin treasury giant, wants to change how it pays investors holding its preferred stocks. The firm is asking shareholders to approve a plan for daily payouts, a shift that would mark one of the more unusual experiments in bitcoin treasury dividends among publicly traded companies. If the vote goes through, holders of four preferred stock series would collect a dividend every single day of the year, weekends and holidays included.

Key takeaways

• Strategy is proposing daily dividends, including weekends and holidays, on four preferred stocks: STRF, STRC, STRK, and STRD.
• Shareholders will vote on the proposal at a meeting scheduled for October 28.
• Strategy says the change would reduce reinvestment lag, boost liquidity and market efficiency, and increase price stability.
• The company remains the largest corporate holder of bitcoin, though it slowed purchases this year during the crypto bear market.
• Strategy recently bought 950 bitcoins for $75.7 million, its first acquisition since August, and may sell up to $1.25 billion worth of bitcoin to fund USD reserves, dividends, or buybacks.

Strategy’s Proposal for Daily Dividends on Preferred Stocks

Strategy confirmed Friday that it wants shareholder sign-off to start paying dividends on a daily basis rather than the traditional monthly or quarterly schedule. The company described itself as the largest corporate holder of bitcoin in the statement announcing the move, framing the change as part of a broader effort to modernize how it rewards preferred stockholders.