Strategy Eyes 7-Day STRC Payout As Saylor Targets Lower Borrowing Costs After ASST Beat MSTR In Daily Dividends

• Michael Saylor said that Strive’s daily dividends on its SATA preferred stock were higher than Strategy’s previous payout schedule.
• Saylor expects the yield premium of STRC over 10-year U.S. Treasuries to shrink from the current level of around 700 basis points to 400-500 basis points.
• Strategy’s board conditionally declared a 12% annual dividend rate on STRC in November, subject to shareholder approval on Oct. 28.

Strategy's (MSTR) Executive Chairman Michael Saylor said Strive (ASST) beat his company on daily preferred-stock dividends. He also added that he expects the premium yield on Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), Strategy’s flagship preferred stock over Treasuries, to tighten over time.

Strive’s SATA Daily Dividends Give It an Edge Over Strategy

Speaking in a fireside chat on ParaFi Capital’s Investor Day 2026 event on Saturday, Saylor said Strategy paid quarterly dividends on its preferreds. It then changed STRC to monthly payouts, then to twice a month. 

His lawyers, he said, told him twice a month was the maximum, as Nasdaq requires a 10-day window between announcing and paying a dividend. But, Saylor said, Strive came out and found a way to do it every day. He said he was “a little bit irate at the legal advice” he had received.

In May, Strive said its Variable Rate Series A Perpetual Preferred Stock (SATA) preferred stock would be the first US security listed to pay cash dividends every business day. Payments began June 16 and paid 13% per year. 

Strive also announced last week that it would be issuing shares with a par value of $0.001 and a stated value of $100 per share. The stated amount would earn a cumulative dividend at an annual rate of 15% and regular dividend payments are scheduled to start on Nov. 9.

Saylor said the change led to more trading in SATA. That, he said, meant Strive had “tapped into a new pool of capital.”

Some investors view a daily-dividend security as a different kind of monetary instrument, one that they wouldn't buy if it paid monthly or quarterly, he said.

Saylor’s Next Plan On Dividends

Strategy wants to take it one step further. Saylor said the company's new plan would pay STRC holders each calendar day, including on weekends. It fits a market that is moving in the direction of 24-hour tokenized trading, Saylor said. 

Saylor said STRC is trading about 700 basis points over the 10-year Treasury yield. One basis point equals one one-hundredth of one percent. That gap is too wide, according to Saylor.

He expects STRC to trade at 400-500 basis points over risk-free yields. “I think it’ll come in two to 300 basis points over time,” he said. 

Why Is Strategy Aiming For A Tighter Spread?

A tighter spread would help Strategy’s credit sell easier, said the Bitcoin-bull. “We sell the credit, we buy the Bitcoin, we drive up the price of the Bitcoin, we drive up the premium in the common stock,” added Saylor, calling it “a triple flywheel.” 

Saylor said STRC's slide below its $100 par this summer taught the company that credit buyers value cash reserves much more than Bitcoin (BTC). “The market would rather see us have 3 years of dollars than 30 years of Bitcoin," he added. Adding to it, he said that strategy now holds about 3.5 years of dividends in cash.

Strategy Sets New STRC Rule From November

Strategy said in its shareholder vote page that the daily dividends are designed to help STRC trade more in line with its target price of $100. 

In a filing on Oct. 15, its board conditionally declared daily STRC dividends for November at a 12% annual rate. The payments are contingent on shareholder approval of the change on Oct. 28. The company said it plans to keep the 12% rate in place until STRC shows consistent healthy trading around $100.

MSTR stock closed nearly 10% lower on Friday. On Stocktwits, retail sentiment around MSTR remained in the ‘bearish’ zone, accompanied by ‘normal’ chatter levels over the past week.

Read also: Rubio Says Trump Will Take Up To 60 Days To Assess Impact Of Russia-Related Sanctions And Tariffs: Report

For updates and corrections, email newsroom[at]stocktwits[dot]com.