Strategy Inc Announces STRC Dividend Rate, Semi‑monthly Cash Dividends

What Happened

• Strategy Inc (MSTR) filed an 8‑K on Oct 1, 2026 disclosing that it will maintain the regular dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) at 12.00% per annum for semi‑monthly periods commencing on or after Oct 16, 2026 (announced Sept 30, 2026 via www.strategy.com/strc).
• The board declared semi‑monthly cash dividends of $0.50 per STRC share for the periods ending Oct 31, 2026 (payable Oct 31, record date Oct 15) and for the period ending Nov 15, 2026 (payable Nov 15, record date Oct 31). The Nov. 15 dividend will be payable only unless a specified “Contingent Dividend Condition” is satisfied (see below).
• The company also reiterated that it uses an online Strategy Dashboard (www.strategy.com) as a Regulation FD disclosure channel for broad public distribution of material information, including bitcoin holdings and KPIs.

Key Details

• Annual dividend rate maintained: 12.00% (applies to the stated semi‑monthly and potential daily dividends).
• Cash dividends declared: $0.50 per STRC share for the semi‑monthly periods ending Oct 31 and Nov 15, 2026.
• Record/payable dates: Oct 31 dividend payable Oct 31, 2026 to holders of record at 5:00 p.m. ET on Oct 15, 2026; Nov 15 dividend payable Nov 15, 2026 to holders of record at 5:00 p.m. ET on Oct 31, 2026 (unless the Contingent Dividend Condition is met).
• Contingent Dividend Condition: the Nov 15 dividend will be canceled only if (a) stockholders approve the “Daily Dividend Amendments” at the Special Meeting (scheduled Oct 28, 2026) at or before 5:00 p.m. ET on Oct 31, 2026, AND (b) the amended certificate of designation (Second A&R STRC CoD) is filed and effective by 12:01 a.m. ET on Nov 1, 2026. If satisfied, the company intends (subject to board approval) to declare daily record‑date dividends for November at the same 12.00% annual rate, payable the next business day.
• Expected tax treatment: dividends payable Oct 31 (and Nov 15, if paid) are expected to be characterized as non‑taxable returns of capital to the extent of a shareholder’s tax basis in STRC for U.S. federal income tax purposes; shareholders should consult their tax advisors.

Why It Matters

• For STRC holders, this filing confirms the company’s planned cash payouts and the unchanged 12.00% annual rate, so it directly affects expected income and cash flow timing.
• The outcome of the Oct 28 special meeting and timely filing of the amended certificate could change dividend mechanics (from semi‑monthly to daily record dates/payments) — that would alter how and when holders receive payments and could affect trading/settlement behavior around record dates.
• The company’s Reg FD dashboard is an official disclosure channel — investors should monitor the dashboard and proxy materials for the Special Meeting and consult tax advisors about the stated return‑of‑capital treatment.