Strategy Moves Its STRC Preferred Stock to Daily Dividend Payments

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• Strategy’s board declared daily cash dividends on its STRC preferred stock for every calendar day in November 2026, totaling $1.00 per share for the month
• The shift from semi-monthly to daily dividends is contingent on stockholders approving “Daily Dividend Amendments” at a special meeting scheduled for October 28, 2026
• If the dividend rate’s Contingent Dividend Condition is met, STRC’s annual rate stays at 12.00 percent for record dates in November 2026

Strategy, the Nasdaq-listed company run by Michael Saylor that holds the largest corporate bitcoin treasury in the world, disclosed on October 15, 2026 that it is restructuring how it pays dividends on one of its preferred stock classes, STRC. Rather than continuing its existing semi-monthly dividend schedule, the company’s board declared cash dividends payable on every single calendar day in November 2026, with daily amounts of either $0.03 or $0.04 that together total $1.00 for the full month.

The shift to daily payments is explicitly contingent on two conditions being satisfied. First, stockholders must approve a set of charter changes the company is calling the “Daily Dividend Amendments” at a special meeting scheduled for October 28, 2026, with voting open until 5:00 p.m. Eastern time on October 31, 2026. Second, a Second Amended and Restated STRC Certificate of Designations needs to become effective by 12:01 a.m. Eastern time on November 1, 2026. If either condition fails to be met in time, the dividend structure reverts to the previously declared semi-monthly schedule, with a payment originally set for November 15 becoming payable instead under that fallback arrangement.

Separately, the filing addressed STRC’s dividend rate itself. If what the company calls a “Contingent Dividend Condition” is satisfied, the dividend rate applicable to STRC for record dates occurring in November 2026 will remain at 12.00 percent per annum, consistent with its recent rate rather than adjusting upward or downward for the month. The company also noted that, as of October 16, 2026, it expects the November daily dividends, if ultimately paid under the new structure, to be treated for tax purposes as a non-taxable return of capital, up to each holder’s own cost basis in the stock.

The filing’s Item 7.01 disclosure confirmed that Strategy continues to use its own strategy.com dashboard as its primary Regulation FD communication channel for disclosing bitcoin purchase activity, total holdings and related key performance indicators, though this particular filing did not include any new bitcoin purchase figures. STRC is one of several distinct preferred stock classes Strategy has issued alongside its common stock, a capital structure the company has used extensively to raise funds that it then deploys toward further bitcoin purchases.

Moving a preferred stock’s dividend from a semi-monthly to a daily payment cadence is a relatively unusual structural change in public markets, one that can appeal to income-focused investors who prefer dividend income distributed in smaller, more frequent increments rather than larger lump sums twice a month. The 8-K, filed with the SEC, did not explain the company’s specific rationale for preferring a daily structure over the existing semi-monthly schedule.