Strategy To Repurchase $1.5b In Convertible Senior Notes

@Strategy has filed a Form 8-K with the U.S. Securities and Exchange Commission announcing a $1.5 billion repurchase of its 2029 convertible senior notes. The move is part of the company's ongoing effort to manage its capital structure as it heads into the second half of fiscal 2026.

The notes are set to mature on December 1, 2029, unless earlier repurchased, redeemed, or converted in accordance with their terms.The original offering raised approximately $2.97 billion in net proceeds after deducting initial purchaser discounts and estimated expenses. The notes carry a 0% coupon and are senior unsecured obligations of the company and do not bear regular interest.

Shareholder Vote Now Live on STRC Dividend Amendment

Running alongside the debt action, $MSTR and $STRC holders are being asked to vote on a proposal to shift dividend payments on Strategy's Stretch preferred stock ($STRC) from monthly to semi-monthly. Strategy is asking stockholders to vote at its June 8, 2026 virtual annual meeting on eight director nominees, ratification of KPMG as auditor, an advisory say-on-pay vote, ratification of an earlier amendment to its STRK preferred stock, and an amendment to STRC preferred dividends to be paid twice per month.

The amendment would keep the 11.5% annualized dividend rate and total annual obligations unchanged, currently around $1.2 billion.Holders would receive payouts roughly every two weeks instead of once a month, with the first semi-monthly payment expected on July 15, following the June 8 shareholder vote.

The company intends to file the amended and restated certificate of designations of STRC only if the proposal receives affirmative votes from both holders of common stock and holders of STRC stock. If either group does not approve, the dividend changes will not be made.

Why the Change Matters

According to Strategy's presentation, STRC currently sees an average $0.45 price drawdown after the ex-dividend date, the deadline to own a stock to receive a dividend, with recovery to its $100 par value taking around two weeks. Typically, on the ex-dividend date, the stock price drops by approximately the amount of the dividend payment.

When STRC trades below its $100 par value, Strategy cannot issue shares through its at-the-market program to raise funds for bitcoin purchases. By smoothing the price action, the company aims to keep STRC closer to par, enabling more consistent capital raising.

Michael Saylor, Founder and Executive Chairman, said the proposal to double STRC's dividend payment frequency to a semi-monthly schedule is intended to further improve the attractiveness of STRC by enhancing liquidity and improving price stability.Shareholders must have been holders of record as of April 17 to be eligible to vote. Votes can be cast via brokerage accounts or through official Strategy portals.

Sources:
Strategy – STRC Semi-Monthly Dividend Vote (Official Page)
CoinDesk – Why Strategy Decided to Make STRC's Dividend Bi-Monthly
StockTitan – Strategy Inc 2026 Definitive Proxy Statement (DEF 14A)