Every calendar day now counts as a record date for Strategy’s Nasdaq-listed Stretch preferred stock (STRC). The amended certificate took effect Nov. 1, with regular dividends scheduled for payment on business days.
The change replaces the semi-monthly schedule adopted in June. In its proxy, Strategy said daily record dates were intended to shorten the wait for holders who want to reinvest dividends and reduce dividend-related price fluctuations. The company also cited potential benefits for liquidity, market efficiency and common stockholders’ access to preferred equity capital.
Nov. 2 was not a regular payment date under the amended certificate. Strategy had scheduled a payment that day for the Nov. 1 record date, but the Nov. 2 prospectus supplement says any payment on that date is governed by the prior certificate. Nov. 3 was the first regular payment date under the amended terms.
November’s annualized rate carried forward at 12%, the rate applicable under the prior certificate for Oct. 16-Nov. 15. Future monthly rates carry forward unless Strategy elects to change them. A different rate requires notice on or before the 15th of the preceding month and remains subject to the certificate’s limits. Dividends are payable only if declared by the board and from funds legally available for that purpose.
For STRC shares cleared through the Depository Trust Company (DTC), a record date that falls on a weekend or DTC holiday is deemed to fall on the immediately preceding day that is not a DTC holiday, according to Strategy’s Oct. 28 Form 8-K. The filing also reported stockholder approval of the amendment; Strategy filed the amended certificates with Delaware on Oct. 29, according to its 2026 Form 10-Q.
EconoTimes previously covered the shareholder approval and initial Nov. 2 payment schedule. Any future monthly rate change would require notice by the 15th of the preceding month.
