QuantCapSTRC has remained below $100 since May, despite a 12% dividend rate and roughly $1 billion in preferred share buybacks.
Strategy proposes daily dividends to bring STRC back toward $100
STRC has remained below $100 since May, despite a 12% dividend rate and roughly $1 billion in preferred share buybacks.
Strategy is asking shareholders to approve daily dividends for its four U.S.-listed preferred stocks, with a vote scheduled for Oct. 28. The proposal would change payment timing without altering dividend rates or total regular payouts, aiming to help STRC trade closer to its $100 stated value. Strategy has spent about $1 billion repurchasing preferred shares, including $174 million of STRC in the week ended Sept. 20.
Strategy MSTR$158.64·Market Closed is asking shareholders to approve daily dividends across its four U.S. listed preferred stocks, STRF, STRC, STRK and STRD.
The largest corporate holder of bitcoin BTC$84,726.85 proposed that dividends would accrue every calendar day, including weekends and holidays, and be paid on the next business day.
The proposal changes payment timing, but leaves dividend rates and total regular dividend amounts unchanged. Shareholders are due to vote on Oct. 28. If approved, STRC’s first daily dividend would be paid on Nov. 2.
This move to daily dividends would be primarily targeted at STRC, which went from monthly to bi-monthly payments in June. STRC has still struggled to return to its $100 stated value since May, and fell to as low as $71 during bitcoin’s selloff back in June. Its annual dividend rate is currently 12%.
Daily payments could make STRC more attractive to income investors by reducing the wait to receive and reinvest dividends, while smoothing price moves around payment dates. Strategy says supporting a trading price close to $100 is the aim of the change.
Strategy has also spent about $1 billion repurchasing preferred shares under its $2 billion programme, including $174 million of STRC in the week ended Sept. 20. The main reason why STRC has struggled is due to Strive’s ASST$29.43·Market Closed perpetual preferred SATA which pays dividends every business day at a 13% annual rate and continues to hold near $100. Daily payments could be the catalyst STRC needs to close the remaining gap, currently priced around $98.65.
Strategy holds 846,000 BTC as of Monday, acquired for $63.80 billion at an average $75,416 per coin.
Bitcoin traded around $83,600 on Friday, while MSTR is 2.15% lower, trading around $158.
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