Strategy’s STRC preferred stock closed eight cents below its $100 stated value as shareholders approved daily dividends on four preferred securities.
Executive Chairman Michael Saylor said preliminary results from the Oct. 28 vote showed 99.3% of votes cast supported the amendment, allowing the company’s four US-listed preferred securities, STRC, STRF, STRK and STRD, to accrue dividends every calendar day.
STRC rose 0.4% to close Wednesday at $99.92, eight cents below its $100 stated value.
Strategy’s stated policy is to refrain from issuing new STRC shares below $100. A sustained return to that level could reopen one source of funding for additional Bitcoin purchases, after more than $2 billion of STRC buybacks.
Under the approved arrangement, STRC’s first daily dividend record date is Nov. 1, with payment scheduled for Nov. 2, subject to the amended terms taking effect. STRF, STRK, and STRD follow on Jan. 1, 2027, with their first payment scheduled for Jan. 4.
The change increases payment frequency without raising the annual dividend rates. Dividends accrue on every calendar day and are paid on the next business day.
Strategy has argued that the changes could reduce price volatility, accelerate dividend reinvestment, and improve liquidity.
Phong Le, Strategy’s chief executive, described the approval as a “powerful upgrade” to STRC and the company’s broader digital credit offerings.
Matthew Sigel, VanEck’s head of digital assets research, highlighted the potential implications of STRC’s recovery for Strategy’s Bitcoin accumulation strategy.
Sigel noted that the last time STRC regained its $100 level, Strategy restarted its at-the-market issuance program the following business day to buy Bitcoin.
However, Sigel also cautioned that relatively low trading volumes could mean Strategy’s ongoing repurchases are having an outsized influence on the security’s market price.
Strategy’s $2 billion STRC buyback campaign nears its target
The recovery follows months of sustained intervention by Saylor’s company, which has spent approximately $2 billion repurchasing STRC since July.
According to company filings, Strategy had $957 million remaining under its expanded $3 billion digital credit securities repurchase program as of Oct. 25.
The company began buying STRC in July, initially spending $25 million on shares at an average price of $86.52. Its purchases subsequently accelerated as the security recovered, including a record $205 million spent during the week ending Oct. 25.
The intervention matters because STRC has become a key part of Strategy’s financing model, allowing the company to raise capital from income-seeking investors and deploy the proceeds into Bitcoin.
The company has also maintained STRC’s 12% annual dividend rate to encourage demand and support trading near its stated value.
Strategy’s STRC dashboard listed approximately $8 billion in outstanding notional value and $155 million in 30-day average dollar trading volume as of the Oct. 28 market close.
A sustained return to $100 could allow Strategy to shift from repurchasing STRC to issuing additional shares, potentially reopening a source of capital for its Bitcoin treasury, which held 848,517 BTC as of Oct. 25.
Strategy has not yet announced a resumption of STRC issuance.
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