STRC Daily Dividend Vote Tonight: Can Strategy's Financing Flywheel Be Restarted?

Original | Odaily Planet Daily ( @OdailyChina )

*Author | Wenser ( @wenser2010 )*

At 10 PM Beijing time on October 28 (10 AM Eastern Time), Strategy's special shareholders' meeting will be held online to vote on whether to amend the designation certificates for four preferred stocks: STRC, STRF, STRK, and STRD, allowing for daily dividend record dates. Voting has been open since the proxy was sent out on October 5, and remote voting will close at 11:59 PM Beijing time on October 28.

If the vote passes, STRC will have a record date every calendar day (including weekends and holidays) starting from November 1, with dividends paid on the next business day. The first payment will be on November 2, at either $0.03 or $0.04 per share, totaling $1.00 per share for November, corresponding to a 12% annualized return. If the proposal fails, a dividend of $0.50 will be distributed as originally planned on November 15, and holders cannot receive both types of dividends simultaneously. STRF, STRK, and STRD, which were originally distributed quarterly, will have their first daily record date on January 1, 2027, with the first payment occurring on January 4, 2027.

In June of this year, Strategy changed the dividend cycle for STRC from monthly to bi-monthly; five months later, as STRC approached a par value of $100, the company is looking to increase the frequency to daily. As of October 25, Strategy holds 848,517 bitcoins, with an additional $4.83 billion in reserves (specifically for preferred stock dividends and debt interest) and $242.4 million in available cash.

Can daily dividends drive a new round of STRC financing and support Strategy's common stock? This article will discuss the adjustment of STRC's daily dividend for readers' reference.

"Financing Flywheel" Core Engine STRC Drops to $71

As one of the core tools for Strategy's financing, STRC has not touched the $100 par value since mid-May. In June, influenced by extremely pessimistic market sentiment, bitcoin fell below $60,000, and STRC dropped to $71.25 (on June 26), marking a new low since its listing.

To reverse the decline in stock price and improve operational cash flow, Strategy subsequently made its first "BTC sell operation" in three years, alleviating the passive situation by selling and no longer being constrained by the previous market expectation of "Strategy only buys and never sells". On the other hand, the sale of BTC also indirectly proved that Strategy has sufficient diverse funding sources to cope with the changing market environment. At the same time, this move desensitized the crypto market to the notion of "Strategy selling coins to crash the market", achieving multiple benefits.

As Strategy bought more BTC and the market environment improved, BTC prices, Strategy's common stock (MSTR), and STRC prices all rebounded, significantly improving the cash flow in Strategy's balance sheet, indicating that "the most difficult moment has passed".

As of the time of writing, MSTR's stock price is around $141, and STRC's par value has returned to $99.49; as of October 25, 2026, Strategy holds 848,500 BTC and $5.1 billion in assets.

Probability of STRC Returning to $100 Par Value by Year-End Currently at 78%

Polymarket data shows that the probability of "STRC reaching $100 before December 31 this year" has risen to 78%; the probability of achieving this by the end of November is currently at 66%; while the probability of achieving it by the end of this month is only 9%.

It is clear that despite the only $0.5 difference, the prediction market does not hold much hope for STRC to return to the $100 par value in the short term.

Daily Dividend Voting About to Begin: MSTR Shareholders Need at Least 17% Support from Other Shareholders' Voting Rights

According to information from Strategy's official voting page, the proposal requires majority support from all issued common stock voting rights, with abstentions and broker non-votes counted as opposition, and preferred stockholders have no voting rights. Only common stock shareholders registered by September 25 can vote: Class A shares have 1 vote per share, totaling 402,337,658 shares, while Class B shares have 10 votes per share, totaling 19,640,250 shares, amounting to approximately 599 million votes.

According to the DEF 14A shareholding information previously submitted by Strategy to the SEC, Strategy Chairman Michael Saylor currently holds 32.9% of the total voting rights, and the proposal needs to gain support from approximately 17.1% of other shareholders' voting rights to pass.

It is worth noting that the voting meeting on October 28 will be held online; even if the proposal is approved, Strategy still needs to submit the amended designation certificates (STRC designations) to the Secretary of State of Delaware for it to take effect; the proxy also includes a proposal to authorize the meeting to adjourn and continue to solicit votes if the count is insufficient; if the first dividend payment on November 2 is to be executed smoothly, it must be completed by 00:01 Eastern Time on November 1 at the latest.

Pros and Cons of Daily Dividends: Good for Stabilizing Price Fluctuations, Bad for Changing Principal Risk

As an important part of Strategy's "financing flywheel", STRC has a huge impact on stabilizing market confidence, stabilizing MSTR's stock price, continuous financing, and continuously buying BTC to obtain appreciation capital.

If daily dividends can be successfully implemented, it will have certain benefits for Strategy, STRC holders, MSTR holders, and BTC. On one hand, Strategy can use this to continue operating the financing flywheel, improve capital utilization, significantly enhance liquidity, and reduce fluctuations on ex-dividend days. This is explicitly stated by Strategy, aiming to minimize the disturbance of accrued dividends on prices, hoping STRC can more steadily approach the $100 par value, making this preferred stock closer to a cash account that can be settled daily, attracting more investors to join, thereby increasing the safety cushion of Strategy's financial balance sheet, reducing financing costs, enhancing company credit, and providing some support for BTC prices.

On the other hand, daily dividends are not a panacea; they also come with corresponding hidden dangers or risk factors that are difficult to change.

Firstly, the process and payment of daily dividends cannot be omitted. Dividends still need to be announced periodically by the company's board of directors and must have legally distributable funds; daily payments do not equate to rigid payments; whether brokers support automatic reinvestment of daily dividends (DRIP) depends on the different brokerage channels used by users, and does not necessarily mean a reduction in financing pressure;

Secondly, daily dividends improve cash flow granularity, not principal stability. They can weaken the gaps and dividend capture trading around monthly ex-dividend days, but cannot turn perpetual preferred stocks into money market funds. This point is exemplified by the fact that BTC treasury company Strive's switch from monthly to daily dividend frequency still did not change SATA's short-term decline. In other words, daily dividends reduce the volatility of dividend investments and avoid speculation around fixed single-day dividends; but fundamentally, they do not eliminate price risks, and whether STRC investors lose their principal still highly depends on Strategy's company credit, BTC price performance, and the market sentiment and conditions in the crypto market.

Thirdly, daily dividends mean that Strategy's cash outflows will be more fragmented and frequent, inevitably increasing the financial and custodial operational burden. This is a necessary cost expenditure for the operation of a listed company and is unavoidable.

Fourthly, Strategy's funding structure itself has not changed significantly. On October 19 and 26, Strategy disclosed STRC repurchases of $193 million and $205 million, respectively, and the repurchase funds could have been used to buy BTC or retained cash, which is a trade-off from the same pool of funds as preferred stock financing for coin purchases. If the daily dividend vote does not pass as scheduled, combined with the performance window impact from the third-quarter earnings report disclosed on October 29, Strategy's "financing to buy BTC - waiting for BTC appreciation - paying interest on appreciated shares - continuing to buy more BTC" narrative will inevitably be questioned in the short term, affecting investor sentiment and confidence, and increasing subsequent financing difficulties.

Of course, from the investors' perspective, if STRC's par value returns to $100 and truly becomes one of the first listed securities to accumulate or distribute dividends on a daily basis, it may attract more DAT treasury listed companies to issue preferred stocks to diversify financing channels, objectively promoting the capital utilization efficiency of investors and listed companies, and driving a new round of capital inflow, which could also bring a wave of incremental growth to the crypto market.

Currently, this "dividend cycle change" that has been brewing for nearly half a year carries a sense of "success is the only option, failure is not allowed" for Strategy and Michael Saylor. As for the outcome, we believe we will know the answer soon.

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