Bitcoin Magazine

Strategy (MSTR) Shareholders Approve Daily Dividends on Four Preferred Stocks

Strategy shareholders have approved the Daily Dividends amendment, the company announced Wednesday. Preliminary results show 99.3% of votes cast were in favor, according to Executive Chairman Michael Saylor.

The amendment allows STRF, STRC, STRK and STRD to accrue dividends every calendar day, including weekends and holidays.

The proposal surfaced on September 25, when the company asked holders to attend a special meeting on October 28. Strategy said the change “would reduce reinvestment lag, enhance liquidity and market efficiency, and increase price stability.”

At the time Strategy said that they “believe these enhancements can also benefit our common stockholders by increasing the attractiveness and utility of our Digital Credit instruments, supporting our ability to access preferred equity capital efficiently and expanding the capital markets toolkit we use to execute our Bitcoin Treasury strategy.

Under the approved structure, dividends accrue every day but are paid on the next business day. Strategy has said scheduled dividend rates and total dividend obligations remain unchanged. The company has argued the change could benefit common stockholders by making its Digital Credit instruments easier to use and easier to fund.

The timing depends on board action. If the board approves the change and required filings are completed, the first STRC record and payment dates would fall on November 1 and 2, 2026. For STRF, STRK and STRD, the first record and payment dates would be January 1 and 4, 2027. Those dates also depend on operational readiness.

STRC pays a variable rate that the company can change at its discretion. Its rate for the month ended June 30, 2026 was 11.50%, according to Strategy’s quarterly report. Shareholders approved moving STRC to semi-monthly payments in June, and the new amendment builds on that precedent.

In short, STRC is designed to help Strategy raise money from investors through a preferred stock offering targeting a stable $100 price and a variable dividend yield, then use that capital to continuously buy Bitcoin regardless of its short-term price movements. This creates a potential global dollar-cost-averaging machine for Bitcoin.

Final vote certification will come in a company filing. Board action remains the final step before any new payment schedule begins.

Strategy’s bitcoin moves this year 

The vote comes after bitcoin fell into somewhat of a bear market. Strategy slowed its bitcoin purchases this year and sold some holdings to fund preferred dividends, interest payments and repurchases. 

The company’s common stock, MSTR, is down near 50% over the past year, though it has risen by a figure approaching 1,000% since Strategy began buying bitcoin in 2020.

Earlier this week, Strategy said they paused Bitcoin purchases for the prior week and maintained its holdings at 848,517 BTC, acquired for $64.02 billion at an average price of $75,446 per Bitcoin. 

The company spent $204.9 million repurchasing STRC preferred stock while retaining a $4.83 billion cash reserve. 

Fellow bitcoin-treasury company Strive pays cash dividends on its Variable Rate Series A Perpetual Preferred Stock (SATA) every business day. This started on June 16, after moving from monthly payments. 

This post Strategy (MSTR) Shareholders Approve Daily Dividends on Four Preferred Stocks first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

TL;DR: Franklin Templeton has filed exchange registrations for two stock-and-Bitcoin ETFs. Their strategy redirects equity dividends into crypto exposure, with portfolio rules designed to keep Bitcoin a minority allocation.

Franklin Templeton is moving closer to offering investors a way to combine a US stock portfolio with an automatic Bitcoin allocation. The idea uses dividend reinvestment to build crypto exposure, while periodically trimming it back.

An October 22 Form 8-A registers shares of the Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF for Nasdaq. The filing is an exchange-registration step; it does not establish that either fund has begun trading.

For investors, the appeal would be operational simplicity. One fund could handle both the equity portfolio and the rules governing its smaller Bitcoin component, avoiding a separate decision each time a dividend arrives.

Dividends Build Exposure, Rebalancing Cuts It Back

The accompanying prospectus filing proposes an October 27 effective date. It gives the equity version the ticker FBEQ and the innovation version FIBT, with annual management fees of 0.09% and 0.19%, respectively.

The VettaFi indexes started with 95% equities and 5% Bitcoin. Their dividend mechanism reinvests regular and special equity dividends into Bitcoin at the following day’s open after the ex-dividend date.

At quarterly rebalancing, a Bitcoin weighting above 5% is reduced to 4.5%. A separate breach above 20% between reviews triggers a reset to 4.5% at the close of the second following business day. That is a corrective rule, not a guarantee the allocation can never temporarily exceed 20%.

The funds can use Bitcoin-linked investment products and derivatives to reproduce the index exposure. A shareholder would own ETF shares, rather than receive coins in a personal wallet.

Economically, this makes the reinvestment decision part of the product. Dividends are still money belonging to the portfolio. Redirecting them into another asset does not create an extra return by itself, and a lower entry cost for that asset does not guarantee a profitable exit.

A Different Role From A Dedicated Bitcoin Fund

Franklin already offers a more concentrated route through its Bitcoin ETF, EZBC. The issuer describes that product as holding Bitcoin and cash, making its value closely dependent on the coin’s market performance.

The proposed DRIP funds would instead leave most of the investment tied to equities. That means stock selection and the behaviour of the chosen benchmark could matter more to the overall return than a modest move in Bitcoin.

The wrapper also changes the practical meaning of custody. Investors trade fund shares through an exchange; they are not managing the keys or selecting each Bitcoin-related instrument themselves.

The next milestone is the funds becoming effective and opening for trading. Until then, the filings describe a planned allocation strategy, with fees and safeguards to examine, rather than a live track record showing how it performs.

Written by the News Desk and edited by Samuel Rae.

Trump wants data center companies to pay host communities as opposition to AI infrastructure grows. Here's what the proposal could mean for future projects.

The post The AI Boom Needs More Data Centers. Trump Wants Communities to Get a Cut appeared first on TechRepublic.

Trump wants data center companies to pay host communities as opposition to AI infrastructure grows. Here's what the proposal could mean for future projects.

The post The AI Boom Needs More Data Centers. Trump Wants Communities to Get a Cut appeared first on TechRepublic.

TL;DR

• Binance will support cash dividends for Oracle and Marvell bStocks holders.
• After taxes, fees and other deductions, the net dividend will be reinvested into additional fractions of ORCLB or MRVLB rather than paid as cash.
• Onchain holders will receive the economic adjustment through a multiplier change, highlighting how corporate actions have to be translated into tokenized-stock mechanics.

Tokenized stocks have to deal with the boring parts of being stocks too.

Binance has outlined how holders of its Oracle and Marvell bStocks will receive upcoming cash dividends, and the answer is not a dollar payment landing in an exchange balance.

Instead, the net dividend will be reinvested into additional fractions of the same tokenized security.

Corporate Actions Need An Onchain Translation Layer

Eligible users holding MRVLB or ORCLB at the October 9 snapshot will participate in the distribution.

After withholding taxes, fees and other applicable deductions, Binance will reinvest the dividend into more units or fractions of the corresponding bStock.

Onchain holders will receive the adjustment through a change in the token’s multiplier.

That may sound like back-office detail, but it gets to an important question for tokenized equities: what happens when the real company does something that affects shareholders?

Dividends, stock splits, mergers and other corporate actions all need to be reflected somehow in the tokenized wrapper.

bStocks Are Not The Underlying Shares

Binance stresses that bStocks represent an interest tied to underlying securities and do not amount to direct ownership of the corporate shares.

That is why the dividend mechanics can differ from what a conventional brokerage customer sees.

The token holder receives the economic effect of the dividend through the product structure rather than dealing directly with Oracle or Marvell.

Trading in the relevant bStock pairs is expected to continue, although conversion, deposits and withdrawals will be temporarily suspended around the distribution process.

This is the kind of operational issue tokenization projects have to solve if they want to reproduce more than a stock’s price chart.

Price exposure is the easy part.

Maintaining the economics of dividends and other corporate events across exchange balances and onchain wallets is harder.

Binance’s approach gives the market another example of how those rights can be represented when the asset itself lives inside a tokenized wrapper.

This article was written by the News Desk and edited by Samuel Rae.

TL;DR

• Binance will support cash dividend distributions for SOXS, MUU, TQQQ and SQQQ bStocks.
• Eligible holders receive the distributions in USDT based on record-date balances.
• The announcement covers four tokenized leveraged-ETF products.

Binance is broadening corporate-action support across its bStocks lineup, adding cash-dividend processing for four leveraged ETF products.

The supported tokens track SOXS, MUU, TQQQ and SQQQ.

Four Leveraged ETF Tokens Get Distribution Support

Binance says eligible holders will receive cash distributions in USDT based on their qualifying balances at the record date.

That matters because tokenized securities are much easier to build than they are to maintain.

A product that tracks price but fails to account for dividends, splits and other corporate actions can drift away from the economics of the underlying asset.

Supporting distributions is part of making the wrapper behave more like the instrument it represents.

Tokenized Equities Are Becoming Operational Products

The announcement is less flashy than a new listing, but it is important infrastructure.

Tokenization has to handle the boring parts of securities ownership if it is going to scale.

In this case, four leveraged ETF bStocks will pass through cash dividend value to eligible users via USDT.

That still does not make the holders conventional registered shareholders.

But it does make the tokenized product more financially complete, and it shows Binance putting more operational machinery behind bStocks rather than treating them as simple price trackers.

This article was written by the News Desk and edited by Samuel Rae.

TL;DR

• Binance will process cash dividends for SOXL bStocks holders based on eligible token balances.
• Distributions are credited in USDT to users’ spot accounts.
• The tokenized product passes through financial distributions but does not give holders conventional shareholder voting rights.

Binance is adding another piece of conventional equity ownership economics to its tokenized-stock product.

The exchange says holders of SOXL bStocks will receive the cash dividend distribution tied to the Direxion Daily Semiconductor Bull 3X Shares product.

Dividends Flow Through The Tokenized Wrapper

Eligible users are credited based on their qualified bStocks balance on the relevant record date.

The payment is distributed in USDT to spot accounts.

That is a useful test of how closely a tokenized equity product can mirror the financial experience of holding the underlying security.

Price exposure is the obvious part.

Corporate actions and cash distributions are harder.

If tokenized-stock products are going to function as more than synthetic price trackers, dividend handling has to work reliably.

Financial Rights Do Not Mean Full Shareholder Rights

The distribution does not turn bStocks into conventional brokerage-held shares.

Receiving an economic dividend is different from receiving voting rights, proxy materials or direct registration in the issuer’s shareholder records.

That distinction should remain clear.

Still, corporate-action support makes tokenized equities more complete as financial products.

SOXL is a leveraged ETF rather than a single company share, but the principle is the same: the token wrapper needs to track more than just price if users are going to treat it as a functional investment instrument.

This article was written by the News Desk and edited by Samuel Rae.