Strategy Ties Daily STRC Dividends to a $100 Peg

Strategy Inc has declared conditional daily cash dividends on STRC preferred stock for every calendar day in November, totaling $1.00 a share at a 12.00% annual rate. The checks start only if common stockholders approve the change at a special meeting on October 28, 2026, and the amended terms take effect by November 1. The proxy states the real job of that cadence: help hold Stretch near its $100 stated amount so the company can keep selling preferred stock to buy bitcoin.

The company conditionally declared daily dividends on STRC after the board acted on October 15, 2026. An 8-K followed on October 16. The same week, MSCI said it will treat a class of non-operating companies as unfit for its global equity indexes. Those two tracks now sit on one calendar.

Strategy has conditionally declared daily dividends on $STRC for November 1–30, 2026, maintaining the 12.00% annual dividend rate. The declaration is subject to shareholder approval of the daily dividend amendment on October 28. https://t.co/OvTHqkOiDD

— Strategy (@Strategy) October 16, 2026

November’s $1 Would Arrive in Daily Slices

STRC is Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock. It now pays twice a month, $0.50 a share each time, at the same 12.00% annual rate on a $100 stated amount. The board has already declared a $0.50 dividend payable on November 15, 2026, to holders of record on October 31. That check is the fallback.

If the vote passes and the new certificate is filed on time, that November 15 payment dies. In its place, the 8-K sets daily cash dividends for each calendar day from November 1 through November 30. Each slice is $0.03 or $0.04 a share. Ten days pay $0.04 and twenty pay $0.03, which still adds to $1.00. The first payment date is November 2. The last is December 1.

Weekends and U.S. market holidays still count as record dates. Payment then bunches onto the next day the Federal Reserve Bank of New York is open. Veterans Day and Thanksgiving are closed, so several daily amounts can land on one business day. The coupon does not rise. A 12.00% rate paid in 30 slices is still a 12.00% rate. Bitcoin has to beat that hurdle, or the dollar reserve and common equity cover the gap.

THE NOVEMBER PAYMENT RULES

• Two gates: Stockholders must approve the daily-dividend amendments by 5:00 p.m. New York time on October 31, 2026, and the amended STRC certificate must be effective at or before 12:01 a.m. Eastern time on November 1.
• One path only: The daily November amounts and the November 15 dividend cannot both become unconditionally payable.
• Tax view: As of October 16, 2026, Strategy expects the daily amounts, if paid, to be treated as non-taxable returns of capital to the extent of a holder’s tax basis in STRC.
• If the vote fails: The November 15 dividend is paid, and the board expects to keep the rest of November on the current twice-a-month schedule.

Management also told the board it will recommend keeping the 12.00% rate until STRC has shown “sustained, healthy trading near $100 per share.” The rate is the lever. Daily settlement is the packaging.

Daily Checks Are a Tool to Hold the $100 Peg

Executive chairman Michael J. Saylor and president and chief executive Phong Q. Le put the capital-markets case in a joint letter dated October 5, 2026. They call STRC, STRF, STRK, and STRD the core of a “Digital Credit” platform of bitcoin-backed perpetual preferred securities. Daily payments, they wrote, are meant to tighten the gap between earning a dividend and receiving cash.

We believe these enhancements can also benefit our common stockholders by increasing the attractiveness and utility of our Digital Credit instruments, supporting our ability to access preferred equity capital efficiently and expanding the capital markets toolkit we use to execute our Bitcoin Treasury strategy.

Michael J. Saylor and Phong Q. Le, joint letter, October 5, 2026 proxy statement

Five pages later the proxy is more specific. More frequent record dates are meant to cut the accrued dividend sitting in the trading price and to damp moves around pay dates. For STRC, the board says the change is also meant to help the company issue and maintain the stock in line with its design, including an intention to keep the trading price at or close to $100 per share.

That sentence is the tell. Stretch was built to trade like a stable, high-yield instrument, not like a junior bitcoin warrant. Strategy does not sell new STRC below $100. When the stock slipped under that mark, the ATM went quiet and the company started buying paper back. Daily dividends will not create a bid by themselves. They are a design tweak aimed at the same peg the company could not hold with twice-a-month checks.

Who Can Vote on October 28?

Only common stockholders of record on September 25, 2026, vote. That roll showed 402,337,658 Class A shares, each with one vote, and 19,640,250 Class B shares, each with ten. Preferred holders, including STRC holders, have no vote on these proposals. The meeting is a webcast at 10:00 a.m. Eastern time on Wednesday, October 28, 2026, at virtualshareholdermeeting.com/MSTR2026SM.

Proposal 1 rewrites the certificates for STRF, STRC, STRK, and STRD so each calendar day can be a dividend record date, with payment on the next business day. It needs the affirmative vote of a majority of the voting power of all outstanding common stock. Abstentions count against it. Proposal 2, which would let the company adjourn to hunt more proxies, needs a majority of votes cast.

Saylor controls 32.9% of the voting power, almost all of it through 19,616,680 Class B shares held by Alcantara LLC, which he wholly owns. That is a large bloc. It is not a majority of all outstanding votes. The board recommends “FOR” on both proposals. It still needs Class A holders to show up.

THE PATH TO DAILY STRC

1. July 29, 2025: Original STRC certificate of designations is filed. The stock later moves from monthly to twice-a-month pay.
2. June 15, 2026: An amended STRC certificate takes effect for the semi-monthly schedule now in force.
3. September 25, 2026: Record date for the special meeting. A preliminary proxy goes out the same day.
4. October 5, 2026: Definitive proxy is filed. Common stockholders can vote.
5. October 12, 2026: Strategy reports zero STRC ATM sales for October 5 through 11, a $192.4 million STRC repurchase, and the purchase of 250 bitcoin.
6. October 15, 2026: The board declares the conditional November daily dividends. MSCI publishes its non-operating-company decision the same date.
7. October 28, 2026: Special meeting at 10:00 a.m. Eastern time.
8. November 1, 2026: First daily STRC record date, if the certificate is effective by 12:01 a.m. Eastern time.
9. November 11, 2026: MSCI is due to publish the final list of companies affected by the new screen.
10. November 30, 2026: MSCI’s change takes effect as of the close.

STRC would be the pilot. The other three U.S. preferreds would finish 2026 on their old quarterly clocks, then move to daily record dates on January 1, 2027.

Two Start Dates for Four Preferred Lines

The vote does not change coupons, the right to skip a declaration, or the rule that dividends come only from legally available funds. It changes how often a declared amount is cut into record dates. STRC goes first because it already pays twice a month. The quarterly names wait until the next calendar year so they can make their December 31 payments under the old terms.

PREFERRED LINES IN THE OCTOBER 28 VOTE

A Luxembourg line, STRE, is outside this meeting. The board also wants room to name extra “business days” later if trading hours expand. Record dates would still run on every calendar day, including Saturday, Sunday, and Christmas. That is the design difference with Strive’s SATA preferred, which already pays daily but only on days the market is open. Strategy is copying the daily habit and then going one step further, after Strive showed the mechanic could clear a transfer agent and a listing venue.

MSCI’s Non-Operating Screen Lands in November

On October 15, 2026, MSCI said it will treat non-operating companies as ineligible for inclusion in the MSCI Global Investable Market Indexes. Funds, business development companies, and other passive vehicles were already out. The new screen adds corporate issuers that look like them on the numbers.

Issuers first face a core test for substantial operating assets. Those that fail that test are run through five financial ratios that are not industry-specific. A security is ineligible if it flags on four or more of the five. Current index members are removed only if they fail in each of the two most recent annual filing periods. MSCI may also use the latest interim filing. The final list is due November 11, 2026, as part of the November index review, and the change takes effect as of the close on November 30.

WHAT WE KNOW

• The rule: MSCI adopted the August 3, 2026 consultation, with minor modifications, on October 15, 2026.
• The buffer: A name already in the index needs two failed annual periods before deletion, which is slower than a one-shot cut.
• The freeze that ends: Interim measures from October 10, 2025, aimed at companies whose digital assets were 50% or more of total assets, including a freeze on share-count increases, will stop with the November review.

WHAT IS UNCONFIRMED

• Strategy’s status: MSCI has not yet published the November 11 deletion list, so index removal is a risk, not a completed event.
• Passive flow: How much common stock tracking MSCI indexes would have to sell, if Strategy is named, is not in MSCI’s announcement.

Strategy still runs an enterprise analytics software business. It also holds 848,250 bitcoin as of October 11, 2026, bought for $64.00 billion, or $75,444 a coin on average. That mix is exactly what the new ratios are built to sort. Common stock is the line that sits in MSCI indexes. Preferred stock is the line the company is trying to make easier to sell. The daily-dividend vote does not change the index rule. It builds a second pipe if the first one narrows.

Strategy Bought Back STRC Instead of Selling It

The October 12, 2026 capital update is the cleanest picture of that pipe. For October 5 through 11, Strategy sold no STRC under its at-the-market program. Capacity left on that line was $17,510.8 million as of October 11. In the same week it bought 1,932,145 STRC shares for $192.4 million and still had $354.8 million left under the preferred repurchase program.

Common stock did a little work. The company sold 125,183 MSTR shares for $21.0 million, leaving $18,807.6 million on that ATM, and used the proceeds, plus $0.5 million of USD cash, to buy 250 bitcoin for $21.5 million at $86,194 a coin. As of October 11 the USD Reserve, which is meant to cover preferred dividends and debt interest, was $4.88 billion. Separate USD cash was $640.5 million.

THE OCTOBER 5-11 CAPITAL WEEK

• STRC ATM sales: None, with $17,510.8 million still available.
• STRC buybacks: 1,932,145 shares for $192.4 million.
• Bitcoin added: 250 coins, taking holdings to 848,250.
• Dollar reserve: $4.88 billion set aside for preferred dividends and interest.

A company note in proxy materials put STRC’s market capitalization at about $9.0 billion as of October 5, 2026, with 30-day average volume of about $150 million as of October 8. That is a large preferred. It is also a product that has been trading under its stated amount, which is why the ATM is idle and the repurchase desk is not. Weekend record dates will make STRC feel closer to a money-market account. The cash still has to appear on a Fed-open business day, funded from the reserve, software cash, or new issuance.

If Proposal 1 fails, Stretch holders collect the November 15 $0.50 and stay on the twice-a-month clock. If it passes and the filing lands by 12:01 a.m. Eastern time on November 1, they collect $0.03 and $0.04 slices instead, still $1.00 for the month, while STRF, STRK, and STRD wait until January 1, 2027. MSCI’s list is still due November 11 either way. The meeting decides how STRC pays. It does not decide whether the common stock remains an index stock.

Disclaimer: This article is news reporting and analysis for information only. It is not investment advice, a solicitation to buy or sell MSTR, STRC, STRF, STRK, STRD, bitcoin, or any other security, and it is not tax advice. Readers should consult a qualified financial adviser and a tax professional about preferred-stock dividends, return-of-capital treatment, and index-fund flows before acting. Dividend amounts, index membership, share counts, bitcoin holdings, and market prices are taken from Strategy’s October 5, 2026 proxy, its October 16, 2026 Form 8-K, its October 12, 2026 capital update, and MSCI’s October 15, 2026 announcement, and those figures can change after the October 28, 2026 meeting and the November index review.