Strategy Inc Declares Semi-Monthly Dividends and Maintains 12.00% Dividend Rate on STRC Preferred Stock

Executive Summary

On September 30, 2026, Strategy Inc filed a Current Report on Form 8-K under Items 8.01 (Other Events) and 7.01 (Regulation FD Disclosure), announcing updates regarding its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).

Key Highlights

1. STRC Dividend Rate Maintenance:

   • Strategy Inc maintained the regular dividend rate per annum on its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) at 12.00% for semi-monthly periods commencing on or after October 16, 2026.
   • Management plans to recommend maintaining this 12.00% rate until STRC demonstrates sustained, healthy trading near $100 per share.

2. Declared Cash Dividends:

   • October 31, 2026 Payment: $0.50 per share payable to stockholders of record as of 5:00 p.m. ET on October 15, 2026.
   • November 15, 2026 Payment: $0.50 per share payable to stockholders of record as of 5:00 p.m. ET on October 31, 2026, subject to the Contingent Dividend Condition.

3. Transition to Daily Dividends & Special Meeting:

   • A Special Meeting of Stockholders is scheduled for October 28, 2026, to vote on the "Daily Dividend Amendments" to amend and restate the certificates of designations (Second A&R STRC CoD).
   • If approved and effective prior to November 1, 2026, the November 15 semi-monthly dividend will be cancelled and replaced with daily dividends across November 2026 at an equivalent 12.00% annualized rate, payable on each subsequent business day.

4. Tax Characterization:

   • Strategy Inc anticipates distributions payable on October 31, 2026, and (if applicable) November 15, 2026, will be treated as non-taxable returns of capital for U.S. federal income tax purposes to the extent of each shareholder's tax basis in STRC.