Bitfinex: Strategy towards daily dividends or to reduce volatility and enhance Bitcoin financing capability

According to Bitfinex analysis, Strategy shareholders voted on October 28 to approve the proposal for daily dividends on STRC preferred shares, with preliminary results showing that 99.3% of votes supported the proposal. STRC is expected to change from bi-monthly dividends to daily dividends starting November 1, with the first cash dividend to be credited on November 2; the other three preferred shares under Strategy, STRF, STRK, and STRD, are expected to follow suit in January 2027.

This move by Strategy aims to reduce price volatility caused by ex-dividend dates. The company's CEO Phong Le stated that previously, when STRC paid monthly dividends, the average price dropped about 49 basis points around the ex-dividend date, which decreased to about 36 basis points after switching to bi-monthly dividends. The company expects that daily dividends will further disperse selling pressure and enhance price stability.

This model is not unique to Strategy. Bitcoin treasury company Strive switched its SATA preferred shares to daily dividends in June this year and launched a subordinate preferred share SATS with a fixed annual dividend rate of 15%. In October, Strive issued 7 million shares of SATS at $90 per share, raising approximately $630 million, and used about $511 million of that to purchase 6,182 BTC.