Strategy Shareholders Vote This Week on Switching a Preferred Stock to Daily Dividends

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• Strategy’s special meeting of stockholders is scheduled for October 28, 2026 at 10:00 a.m. Eastern time to vote on amendments switching STRC to daily dividends
• The amendments need stockholder approval by 5:00 p.m. Eastern time on October 31 and must take effect by 12:01 a.m. Eastern time on November 1 to take hold for that month
• STRC’s semi-monthly dividend currently pays $0.50 per share, representing a 12.00 percent annual rate, with the October 31 payment unaffected regardless of the vote’s outcome

Strategy, the Nasdaq-listed company run by Michael Saylor that holds the largest corporate bitcoin treasury in the world, has scheduled a special meeting of stockholders for October 28, 2026 at 10:00 a.m. Eastern time, where investors will vote on amendments that would restructure how one of the company’s preferred stock classes, STRC, pays its dividend. The proposal, disclosed in an SEC filing, would shift STRC from its current semi-monthly payment schedule to dividends declared and paid on every calendar day.

Under the amendments, known as the Daily Dividend Amendments, STRC would move to a regular dividend record date falling on each calendar day, with any declared dividend paid out on the next business day rather than twice a month as under the current structure. For the change to take hold for November 2026, two conditions both need to be satisfied: stockholders must approve the amendments by 5:00 p.m. Eastern time on October 31, 2026, and a Second Amended and Restated STRC Certificate of Designations must become legally effective by 12:01 a.m. Eastern time on November 1, 2026.

The timing matters for income-focused STRC holders specifically because of how the company has structured the surrounding dividend payments. STRC currently pays a semi-monthly cash dividend of $0.50 per share, representing a 12.00 percent annual rate on the security. The payment due October 31, 2026, covering holders of record as of October 15, is unaffected by the vote’s outcome either way. The payment that would normally be due November 15, covering holders of record as of October 31, is the one actually at stake: if the Daily Dividend Amendments are approved and take effect in time, that semi-monthly payment is replaced entirely by a series of daily dividends across November, still calculated at the same 12.00 percent annual rate, pending a separate board approval of the daily declarations themselves.

If either condition is not met by its deadline, in other words if shareholders do not approve the change in time or the certificate amendment does not become effective by the start of November, the fallback is simple: the originally scheduled November 15 semi-monthly payment proceeds as already declared, under the existing dividend structure, with no disruption to income STRC holders currently receive.

Strategy has separately indicated it expects the dividends paid under this structure, whichever version ultimately applies, to be treated for tax purposes as a non-taxable return of capital up to each holder’s own cost basis in the stock, a characterization the company cautions shareholders should still confirm with their own tax advisors given individual circumstances can vary. The filing, submitted to the SEC, does not specify the record date for the October 28 special meeting itself.