Strategy's common shareholders vote on Oct. 28 on whether STRC and three other preferred stocks can pay daily dividends. Approval needs a majority of all outstanding common voting power, so abstentions count against it, and Michael Saylor holds 32.9% of that power.
Strategy's common shareholders vote Wednesday, Oct. 28, on moving STRC preferred stock from twice-monthly dividends to daily entitlements. The virtual special meeting begins at 10:00 a.m. ET.
Silence counts as a no vote
Proposal 1 would amend the certificates for four preferred stocks, STRC, STRF, STRK and STRD, so they can carry daily dividend record dates. Only common stockholders of record on Sept. 25 can vote, and preferred holders get no say.
Approval requires a majority of the voting power of all outstanding common stock, not just votes cast. Abstentions and broker non-votes have the effect of votes against Proposal 1.
Saylor holds part of that vote. The proxy's ownership table lists him with 32.9% of total voting power, principally through Class B stock carrying 10 votes per share. His block alone cannot approve the change, and the company still needs roughly another 17 percentage points from other holders.
What daily STRC payouts would look like
Strategy has conditionally declared November STRC dividends totaling $1 per share at a 12% annual rate, with daily amounts of three or four cents per share. The first record date would be Nov. 1, with payment Nov. 2.
On the development, Strategy CEO Phong Le wrote on X: "It will be the first global security with calendar day accruals"
If shareholders do not approve the change by 5:00 p.m. ET on Oct. 31, or the amended certificate is not effective by 12:01 a.m. ET on Nov. 1, the previously declared Nov. 15 dividend is payable instead. Holders cannot collect both. STRF, STRK and STRD would begin daily record dates in January 2027.
Buybacks target the $100 level
The proxy ties the change to the goal of keeping STRC trading at or near its $100 stated amount. Strategy disclosed in an Oct. 26 filing that it spent $204.9 million repurchasing 2,068,459 STRC shares during Oct. 19-25.
STRC closed at $99.16 on Monday. Strategy reports third-quarter results on Oct. 29 and currently holds 848,517 BTC as of Oct. 25.
Sources: Bitcoin News, The Defiant
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