Saylor wants his preferreds to clock in 365 days a year — holidays included 🗓️

Strategy is asking shareholders to let its four U.S. preferred share classes pay dividends every calendar day, including weekends and public holidays, executive chairman Michael Saylor said Thursday. The proposal covers $STRF, $STRC, $STRK and $STRD, with accruals running 365 days and payments settling the next business day. Strategy filed a preliminary proxy the same day, plans to file a definitive proxy on October 5, and will hold a shareholder vote on October 28.

The change would lift payment frequency from 24 annual record dates on $STRC to 365, and raise the three quarterly-paying series — $STRF, $STRK and $STRD — by a factor of about 90, according to president and chief executive Phong Le. $STRC would move first, with a first record date of November 1 and first payment on November 2; the other three would finish the current quarter on the existing schedule, paying for the last time on December 31 before switching to daily accruals on January 1. The underlying dividend economics are unchanged.

Saylor framed the shift in terms of volatility and liquidity. "The way that you create low volatility and high liquidity is to shorten the duration of the instrument and to actively manage the credit," he said, adding that, "the higher the frequency of those adjustments, the lower the volatility of the instrument." Lower volatility, he said, "the easier it is to get in and get out." Le said $STRC's pre-dividend price drop was about 49 basis points when the share paid monthly and narrowed to roughly 36 basis points after June's move to semi-monthly payments. Strategy also pointed to steadier month-end marks for fund managers, a possible home for institutions' idle cash, faster reinvestment, potential inclusion in low-volatility indices, and improved haircuts when the shares are pledged as collateral.

Le called the structure "the first global security in the world with calendar day accruals and dividends." If approved, the four would be the only securities anywhere paying on 365-day calendar accruals, among five globally with daily dividends and a combined market value of $15 billion. Shareholders had backed the prior change easily, with 97.5% of $STRC holders and 99.9% of common shareholders approving semi-monthly payments in June, Le said, noting that Strategy has paid $255 million in $STRC dividends since.

The preferreds are central to how the Bitcoin treasury firm funds itself. Strategy bought $139 million of $STRC this month while pausing $BTC purchases, raised $2 billion selling $MSTR stock for a dollar reserve, and operates within a framework that could see it sell up to $1.25 billion of $BTC to service the obligations. The company bought a further $76 million of $BTC last week, bringing its holdings close to their June record.