Strategy Declares $1.00 Of Daily STRC Dividends For November, Payable Only If Holders Approve
The daily payouts would replace the November 15 dividend if stockholders approve a new schedule at an October 28 special meeting.
Strategy's board declared daily cash dividends on its STRC preferred stock for every calendar day from November 1 through November 30, 2026, totaling $1.00 per share, according to an 8-K filed Friday. The board acted Thursday, and the payments happen only if stockholders approve a new dividend schedule.
What the 8-K says
Each daily dividend is $0.03 or $0.04 per share. It is paid on the business day after its record date, running from November 2 through December 1. The filing excludes days the Federal Reserve Bank of New York is closed, including Veterans Day and Thanksgiving Day, so some record dates pay on the same day.
If the condition is met, STRC's regular dividend rate for November record dates will be 12.00% a year. Management will recommend that the board keep that rate until STRC has shown sustained, healthy trading near $100 per share.
The company expects the November daily dividends, if payable, to be treated as non-taxable returns of capital up to a holder's tax basis in STRC for U.S. federal income tax purposes. It tells holders to consult their own tax advisers.
The condition, and what happens if it fails
Two things must happen. Stockholders must approve the amendments by 5:00 p.m. New York time on October 31, and the amended certificate of designations must be filed and effective by 12:01 a.m. Eastern on November 1.
If both occur, the November 15 dividend, the one declared September 30 for holders of record on October 31, will not be paid. If either fails, the daily dividends are not paid, the November 15 dividend is, and the company expects to keep declaring on its current semi-monthly schedule, subject to board approval. The filing says both sets of dividends will never become payable together.
The vote is at a special meeting on October 28 at 10:00 a.m. Eastern. Holders will consider amending the certificates of designations for STRC and certain other preferred series to set a dividend record date every calendar day. The company filed its definitive proxy statement for the meeting on October 5.
What to watch
The October 28 vote decides the schedule. MSTR closed Thursday at $151.29, before the filing became public Friday.
If approval comes but the amended certificate misses the 12:01 a.m. Eastern deadline on November 1, the daily dividends fall away and the November 15 payment stands.
Sources
- 8-K Filing — Strategy Inc (MSTR) — SEC EDGAR
