Strategy wants to pay its STRC holders every single day from November 1, if shareholders vote yes on October 28

Michael Saylor's Strategy is trying to turn its biggest preferred stock into something closer to a daily-interest account. In a filing on Friday, the company said its board had declared cash dividends on STRC for each calendar day from November 1 to November 30, worth $0.03 or $0.04 a share per day and $1.00 a share in all. Each day's dividend would go to holders on record at 5pm New York time and be paid on the next business day, from November 2 to December 1.

There is a condition. Shareholders must approve amendments allowing a daily record date at a special meeting set for October 28, and the revised STRC terms must take effect by 12:01am Eastern on November 1. If that happens, the semi-monthly dividend due on November 15 falls away. If it does not, the November 15 payment stands and the daily plan lapses. The filing says the two can never both be paid.

The rate for November would be 12% a year, and management plans to recommend keeping it there until STRC shows sustained, healthy trading near $100. CoinDesk noted that STRC closed Thursday at $99.53, slightly below par, which limits its use for raising money to buy bitcoin. Strategy says it expects the daily payments, if made, to count as non-taxable return of capital up to a holder's tax basis.