Strategy Proposes Conditional 12% STRC Rate and Daily November Dividends

Strategy has proposed a daily dividend schedule for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), with an annualized rate of 12% for November record dates if the plan’s conditions are met.

The plan covers Nov. 1-30 and calls for a total of $1 per share. Each calendar day would have a dividend record date, with that day’s dividend payable on the next business day. Dividends tied to multiple record dates may be paid together.

The schedule depends on two steps. Shareholders must approve the change by 5 p.m. ET (21:00 UTC) Oct. 31 at a special meeting scheduled for Oct. 28; the meeting may be adjourned or postponed. The related certificate of designation must also be filed and effective by 12:01 a.m. ET (04:01 UTC) Nov. 1.

If both conditions are met, the previously declared Nov. 15 dividend will not be payable. If either condition is unmet, the daily schedule will not take effect, and the Nov. 15 dividend remains payable under STRC’s current twice-monthly schedule.

Strategy kept STRC’s annualized rate at 12% throughout October. Management plans to recommend that the board maintain the rate until STRC demonstrates sustained, healthy trading near $100 per share.