Strategy maintains STRC preferred dividend at 12.00% pending stockholder vote

Strategy Inc disclosed in an 8-K dated September 30, 2026 that it will maintain the 12.00% annual dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, for semi-monthly periods beginning on or after October 16, 2026. The filing also makes a November 15, 2026 dividend payment contingent on stockholders approving a restructuring of how preferred dividends are calculated and paid.

• Board declared STRC dividends payable October 31, 2026 to holders of record October 15, 2026
• A second payment date, November 15, 2026, depends on a vote at an October 28, 2026 special meeting
• Watch whether stockholders approve the “Daily Dividend Amendments” by October 31, 2026

• 12.00% annual STRC dividend rate held flat
• Oct 28 special meeting date for the vote
• Oct 31 deadline to satisfy the dividend condition
• Nov 1 target effective date for new daily-dividend structure

Strategy Inc, the Tysons, Virginia-based bitcoin treasury company, filed the 8-K to report a board decision on dividend mechanics for one of its four publicly traded preferred stock series. The filing states the company “announced that it will maintain the regular dividend rate per annum on the Company’s Variable Rate Series A Perpetual Stretch Preferred Stock (‘STRC’) effective for semi-monthly periods commencing on or after October 16, 2026 at 12.00%,” a rate the company first disclosed via its website rather than in the filing itself.

A second payout is tied to a shareholder vote

The board declared a dividend payable October 31, 2026 to STRC holders of record as of 5:00 p.m. New York time on October 15, 2026, with no conditions attached. A second dividend, payable November 15, 2026, depends on what the filing calls the “Contingent Dividend Condition”: stockholders must approve the Daily Dividend Amendments at the October 28, 2026 special meeting by 5:00 p.m. New York time on October 31, 2026, and an amended certificate of designations, the Second A&R STRC CoD, must be filed and effective by 12:01 a.m. Eastern time on November 1, 2026.

If both conditions are met, the November 15 dividend will not be paid. Instead, Strategy says it intends to declare daily dividends for November 2026 starting November 1, with payments on each subsequent business day at the same 12.00% annual rate, subject to board approval.

Management ties the rate to STRC’s share price

The filing repeats a prior commitment on the rate’s duration, stating that “management will recommend to the board of directors that the Company maintain STRC’s regular dividend rate per annum at 12.00% until STRC has demonstrated sustained, healthy trading near $100 per share.” The document does not state STRC’s current trading price or how far it sits from that $100 threshold, leaving the key benchmark for any future rate change undisclosed.

Strategy also said that, as of October 1, 2026, it expects the October 31 and November 15 dividends to be “characterized as non-taxable returns of capital to the extent of a shareholder’s tax basis in their STRC for U.S. federal income tax purposes.” The filing cautions that special tax considerations may apply depending on individual circumstances and directs shareholders to their own tax advisors.

“Such rate shall have no effect on any previously declared but unpaid dividends on STRC.”

Strategy Inc, Form 8-K

What the filing leaves open

The 8-K does not disclose the dollar amount of the dividends involved, STRC’s outstanding share count, or the company’s current bitcoin holdings, all of which bear on investor exposure to the preferred stock. It also does not say what happens to the preferred structure if stockholders reject the Daily Dividend Amendments beyond reverting to the semi-monthly November 15 payment, nor does it explain the operational rationale for shifting STRC and other preferred series to daily record dates.

Strategy notes it filed a preliminary proxy statement with the SEC for the special meeting and will file a definitive proxy before mailing materials to stockholders, but that definitive document is not yet before investors.

The BlockWest read. Strategy is converting a semi-monthly preferred dividend regime into a daily one, a mechanical change that smooths cash-flow timing for STRC holders but adds a procedural hurdle, a shareholder vote, before the November payout structure can take effect. For allocators holding STRC, Strike, Stride or Strife, the practical takeaway is that the 12.00% rate is unchanged for now, but the payment calendar itself is up for a vote on October 28.

The next concrete event is the special meeting on October 28, 2026, where stockholders will vote on the Daily Dividend Amendments; the outcome determines whether the November 15, 2026 STRC dividend is paid at all.

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