Strategy Executive Chairman Michael Saylor said Bitcoin itself does not pay a coupon, and the company pays investors a dollar dividend under the terms of the security. According to Odaily, Strategy funds dividends and debt interest through stock issuance or selective sales of holdings, and its preferred stock is not backed by Bitcoin.

Strategy’s MSTR common stock provides Bitcoin exposure, while STRC preferred stock is aimed at investors seeking dollar income. STRC currently offers an annualized dividend rate of 12%, with the rate adjusted monthly and dividends paid twice a month; the security has no maturity date and does not guarantee principal repayment.

On September 25, Strategy proposed changing the dividend to accrue on a daily calendar basis, while declared amounts would typically be paid on the next business day and the regular dividend rate and total amount would remain unchanged. Shareholders are scheduled to vote on October 28, and if the proposal is approved, STRC’s first daily record date will be November 1, with the first payment set for November 2.