STRATEGY HOLDS STRC’S DIVIDEND AT 12% FOR PERIODS FROM OCTOBER 16 — $0.50 A SHARE ON OCTOBER 31 — THE NOVEMBER 15 PAYMENT DROPS AWAY IF HOLDERS APPROVE DAILY DIVIDENDS AT THE OCTOBER 28 MEETING — A DIVIDEND FOR EVERY DAY OF NOVEMBER WOULD REPLACE IT

Strategy filed an 8-K on October 1, 2026. It keeps the dividend on STRC, its Stretch preferred, at 12% a year for periods starting on or after October 16, and declares $0.50 a share payable October 31 to holders of record October 15. Management will keep recommending 12% "until STRC has demonstrated sustained, healthy trading near $100 per share."

The next $0.50, due November 15, comes with a condition. It is paid unless two things happen: stockholders approve the "Daily Dividend Amendments" at the October 28 special meeting by 5 p.m. on October 31, and the new certificate of designations takes effect by 12:01 a.m. on November 1. If both happen, there is no November 15 payment. Instead, subject to a board vote around October 15, STRC would carry a record date on every calendar day of November, each paid the next business day, at the same 12%.

The rate does not change, the calendar does. At 12% on $100 par, a share earns $12 a year, and each semi-monthly check is $0.50. Under the daily plan a holder no longer has to own STRC on the 15th or the last day of the month to collect; each day of holding earns its own slice. Strategy also says it expects the October 31 payment, and the November 15 one if it happens, to count as a non-taxable return of capital up to a holder's basis.

Who pays does not change either. It is still Strategy's balance sheet, and management has tied the 12% to one thing: STRC trading near $100 and staying there. A daily dividend is a bet that paying every day keeps the price closer to par. The vote on October 28 decides whether it gets tried. At the time of this writing, bitcoin was $84,303.