32.9% of the voting power, $BTC the giant wants to switch to daily dividends
Tomorrow (October 28), shareholders of Strategy, a company holding Bitcoin, will vote on one thing: allowing their preferred shares to pay dividends on a daily basis.
This vote is about adjusting the terms of four preferred shares—STRC, STRF, STRK, and STRD (shares that promise regular dividends and have no maturity date)—to allow the dividend record date to be set on a daily basis. Once the record date is set, shareholders on record that day receive the dividend for that period.
The threshold is quite strict: a majority of the voting power of all issued common shares must approve. Abstentions and broker non-votes count as votes against, and preferred shareholders do not have voting rights. Michael Saylor alone holds 32.9% of the voting power. To be honest, the result is basically written on his face.
From the data, this is more favorable for preferred shares such as STRC, and neutral for $BTC : income investors get a more flexible dividend arrangement, the company’s financing tools become easier to sell, and its capacity to accumulate Bitcoin becomes stronger. On the downside: a higher dividend frequency does not mean higher dividends; if cash flow cannot keep up with dividend obligations, more flexible terms won’t help. If the proposal is rejected, the analysis becomes invalid.
Tomorrow (October 28), shareholders of Strategy, a company holding Bitcoin, will vote on one thing: allowing their preferred shares to pay dividends on a daily basis.
This vote is about adjusting the terms of four preferred shares—STRC, STRF, STRK, and STRD (shares that promise regular dividends and have no maturity date)—to allow the dividend record date to be set on a daily basis. Once the record date is set, shareholders on record that day receive the dividend for that period.
The threshold is quite strict: a majority of the voting power of all issued common shares must approve. Abstentions and broker non-votes count as votes against, and preferred shareholders do not have voting rights. Michael Saylor alone holds 32.9% of the voting power. To be honest, the result is basically written on his face.
From the data, this is more favorable for preferred shares such as STRC, and neutral for $BTC : income investors get a more flexible dividend arrangement, the company’s financing tools become easier to sell, and its capacity to accumulate Bitcoin becomes stronger. On the downside: a higher dividend frequency does not mean higher dividends; if cash flow cannot keep up with dividend obligations, more flexible terms won’t help. If the proposal is rejected, the analysis becomes invalid.