99.3% shareholder vote: MicroStrategy (MSTR.US) preferred stock to start daily dividends

According to Woofun AI, MicroStrategy (MSTR.US) approved a key amendment to its corporate charter at a special meeting held on October 28, with an overwhelming 99.3% shareholder vote, officially allowing four series of its preferred shares—coded as STRF, STRC, STRK, and STRD—to implement a daily dividend distribution plan.

This structural shift was initially confirmed by Executive Chairman Michael Saylor on the X platform, marking a decisive step for the company in optimizing its capital structure and shareholder return mechanisms. The core of this resolution lies in breaking the traditional practice in the US stock market where dividends are only settled on business days. Instead, the dividend accumulation period will be extended to all 365 days of the year, including weekends and statutory holidays, thus providing shareholders with a more continuous income stream. According to documents filed with the U.S. Securities and Exchange Commission (SEC), each calendar day is defined as a record date, and the corresponding dividend payments are deferred and settled on the next business day. This mechanism directly changes the value anchoring method for preferred shares.

Data compiled by Woofun AI shows that the implementation of this daily dividend plan will be strictly divided into two stages to ensure a smooth technical transition. The STRC series will be the first pilot, with its first daily record date set for November 1, with the first dividend settlement on November 2; the STRF, STRK, and STRD series will start later, officially entering the daily dividend schedule from January 1, 2027, and the first payment is expected on January 4, 2027.

It is worth noting that, as the Depository Trust Company (DTC) and Nasdaq will technically count weekends or holidays’ record dates as the previous business day, investors need to be alert to the logic of ex-dividend date determination. For example, on November 6, the dividends generated on Friday, Saturday, and Sunday will all be consolidated into the record date of November 6 and distributed on Monday, November 9.

This means that investors who buy STRC shares during the November 6 trading session will not be entitled to the three dividends for that cycle, while those who sell shares on the same day will receive the full accumulated dividends. This rule introduces new compliance and technical coordination requirements for short-term trading strategies.

This dividend system restructuring is not an isolated event, but one of MicroStrategy's (MSTR.US) measures to address share price volatility and external regulatory pressure. For STRC shares, the company has completely changed the traditional system of 24 record dates per year to a fixed arrangement of 365 record dates throughout the year, aiming to smooth price volatility through more frequent cash flow distribution. As of the report's release, the trading price of STRC was $99.86, slightly below the par value of $100, indicating the market's expectation of a value rebound. To support this goal, MicroStrategy (MSTR.US) engaged in rare capital operations over the past week: for the first time since mid-September, it suspended routine direct Bitcoin purchase plans and instead used $204.9 million to directly repurchase STRC shares on the open market.

This reallocation of funds clearly demonstrates management's strategic intent to prioritize stabilizing preferred share prices over simply expanding Bitcoin holdings during certain periods.

A deeper driving force comes from increasingly stringent review standards set by global index compilers. Financial data giant MSCI (MSCI.US) updated the inclusion rules for the MSCI (MSCI.US) Global Investable Market Indexes on October 15, explicitly excluding non-operating entities or companies whose balance sheets are primarily comprised of a single asset.

This new regulation directly targets MicroStrategy (MSTR.US), the world's largest Bitcoin-holding company, posing a potential threat to its ability to attract institutional capital inflows. According to MSCI (MSCI.US)'s official timeline, the final list of companies affected by this rule will be announced on November 11, at which point whether MicroStrategy (MSTR.US) will be excluded will become a focal point for the market.

In this context, enhancing the cash flow attractiveness of the shares through daily dividends, combined with large-scale repurchases to stabilize the share price, is seen as a key defensive move by MicroStrategy (MSTR.US) to convey confidence and maintain liquidity in the face of index exclusion risks.