Strategy Stockholders Approve Daily Dividends for Four Preferred Stock Series

Key Points

• Stockholders approved amendments allowing daily dividends for four perpetual preferred-stock series: Strife, Stretch, Strike and Stride. The proposal received 381.4 million votes, representing 63.69% of total voting power.
• Strategy said the transition to daily dividends will not create a payment gap for Stretch holders because dividends are paid in arrears. Daily payments will begin Nov. 1 if the amendments take effect by 12:01 a.m. ET that day; otherwise, the semi-monthly payment schedule will apply through Nov. 15.
• Executive Chairman Michael Saylor reaffirmed Strategy’s focus on its Bitcoin treasury strategy and its goal of building stockholder value.

Strategy NASDAQ: MSTR stockholders approved amendments to the terms of four perpetual preferred-stock series to permit daily dividend payments during the company’s 2026 special meeting of stockholders.

The proposal covered the company’s 10% Series A Perpetual Strife preferred stock, variable-rate Series A Perpetual Stretch preferred stock, 8% Series A Perpetual Strike preferred stock and 10% Series A Perpetual Stride preferred stock. The amendments will be made through amended and restated certificates of designations for each series.

Executive Chairman Michael Saylor opened the virtual meeting by thanking stockholders and reiterating the company’s focus on its Bitcoin treasury strategy. Saylor said Strategy was positioned to pursue its goals as a Bitcoin treasury company and seek to build stockholder value.

According to Jim Raitt, inspector of election for American Election Services, LLC, a quorum was present. The meeting included at least 187.9 million Class A common shares and 19.6 million Class B common shares represented in person or by proxy, accounting for 384.0 million votes out of approximately 598.7 million votes eligible to be cast.

Vote Results

Stockholders approved the preferred-stock amendment proposal with 381.4 million votes, or 63.69% of total voting power of outstanding shares entitled to vote. A total of 2.2 million votes were cast against the proposal, while 444,752 votes abstained. There were no broker non-votes.

• For: 381,355,641 votes
• Against: 2,233,325 votes
• Abstentions: 444,752 votes
• Broker non-votes: Zero

The company had also asked stockholders to authorize potential adjournments of the special meeting if more time was needed to solicit proxies for the first proposal. General Counsel and Secretary Thomas Chow said that second proposal was no longer necessary following approval of the dividend amendment.

Stretch Dividend Timing

During the meeting’s question-and-answer portion, President and Chief Executive Officer Phong Le addressed a stockholder question about whether moving to daily dividends would leave a distribution gap for holders of Stretch preferred shares between Oct. 15 and Nov. 15.

Le said there would be no interruption because Stretch dividends are paid in arrears. He said the dividend covering Oct. 16 through Oct. 31 had already been declared and is payable Oct. 31 to holders of record as of Oct. 15.

The following dividend period, covering Nov. 1 through Nov. 15, will be governed either by the prior semi-monthly schedule or the new daily schedule, depending on when the approved amendments take effect. Strategy had conditionally declared payments under both alternatives, Le said, but only one payment structure will apply.

If the amendments take effect by 12:01 a.m. Eastern Time on Nov. 1, daily dividends will begin that day. Otherwise, the semi-monthly dividend will be payable on Nov. 15. “In either case, dividend coverage will continue uninterrupted with no gaps,” Le said.

Le also noted that, for shares held through the Depository Trust Company, record dates that fall on weekends and holidays will be treated as occurring on the immediately preceding DTC business day. He cited an example in which dividends for Nov. 6, Nov. 7 and Nov. 8 were expected to be distributed on Nov. 9 to holders of record on Friday, Nov. 6.

About Strategy (NASDAQ:MSTR)

Strategy, formerly known as MicroStrategy, Incorporated NASDAQ: MSTR is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.

Founded in 1989 by Michael J.

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