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ZEC $1,111 Strategy sets conditional daily STRC dividends ahead of October 28 vote
Strategy plans $1 per STRC share in November if holders approve daily dividends at an October 28 meeting and the filing takes effect in time.
Key takeaways
- One dollar per share. Strategy plans $1 per STRC share for November, an announced rate equivalent to approximately 12% annually.
- Vote set for October 28. Stockholders will vote on the daily-dividend proposal at a special meeting on October 28.
- STRC trades near par. STRC was trading at $99.4, close to its $100 par value, according to TradingView data.
What happened
Strategy has declared conditional daily dividends on its STRC preferred stock for November, according to an October 16 filing. The company plans to pay $1 per share for the month if the daily-dividend proposal passes and takes effect in time.
If the conditions are met, payouts would run daily from November 2 through December 1. Stockholders will vote on the proposal at a special meeting on October 28.
Strategy currently pays STRC dividends twice a month. The company first paid monthly, then moved to semi-monthly payments earlier this year.
The announced rate was equivalent to approximately 12% annually, or $1 per preferred share for the month. If the proposal passes, Strategy would join Strive, which already pays daily dividends on its preferred security SATA.
Why it matters
More frequent distributions could shorten the gap between earning and receiving a dividend.
STRC is a variable-rate preferred security that Strategy uses to finance Bitcoin purchases. Preferred financing can raise money without immediately issuing more common shares, but it creates dividend obligations that need ongoing management.
The vote comes as Strategy faces potential removal from MSCI's global index under a methodology that excludes non-operating companies. MSTR was trading around $146, down over 3% at the market open, according to TradingView data.
Cantor Fitzgerald raised its MSTR price target to $208 from $186 and kept an Overweight rating, according to CoinGape. STRC was trading at $99.4, near its $100 par value.
What is still unclear
- It is not yet known whether stockholders will approve the daily-dividend proposal at the October 28 meeting. If they do not, or if the approval does not take effect before November, existing arrangements remain in place.
- The reports do not state whether MSCI will remove Strategy from its global index.
Questions readers ask
When will Strategy pay daily STRC dividends?
Strategy plans daily payouts from November 2 through December 1, totaling $1 per share, if stockholders approve the proposal and the approval takes effect before November.
How much is the STRC dividend for November?
The declared amount is $1 per share for the month, an announced rate equivalent to approximately 12% annually.
How often does Strategy pay STRC dividends now?
Strategy currently pays STRC dividends twice a month, after starting with monthly payments and later switching to semi-monthly payments.
What is STRC?
STRC, also called Stretch, is a variable-rate preferred security that Strategy uses to help finance Bitcoin purchases. Its appeal is tied to recurring income and efforts to keep the share price near its $100 reference level.
