Company: MSTR
Filing Date: 2025-03-10
Form Type: 424B5
Source: 0001193125-25-050408
Chunk: 2

Company: Strategy Inc
Filing Date: 2025-03-10
Form: 424B5
Chunk 2
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 preferred stockholders have the right to convert some or all of their shares of perpetual strike preferred stock on any business day into shares of our class A common stock (together, if applicable, with cash in lieu of any fractional share of class A common stock) at the then-applicable conversion rate. The initial conversion rate is 0.1000 shares of class A common stock per share of perpetual strike preferred stock, which represents an initial conversion price of $1,000.00 per share of class A common stock, and is subject to adjustment as described in this prospectus supplement. We have the right, at our election, to redeem all, and not less than all, of the perpetual strike preferred stock, at any time, for cash if the total aggregate liquidation preference of all perpetual strike preferred stock then outstanding is less than $182,500,000 (which is equal to 25% of the aggregate liquidation preference of the perpetual strike preferred stock issued on February 5, 2025). In addition, we have the right to redeem all, but not less than all, of the perpetual strike preferred stock if a “tax event” (as defined in this prospectus supplement) occurs. The redemption price for any perpetual strike preferred stock to be redeemed will be a cash amount equal to the liquidation preference of the perpetual strike preferred stock to be redeemed (or, in the case of a redemption in connection with a tax event, the greater of (1) the liquidation preference of the perpetual strike preferred stock to be redeemed; and (2) the average of the last reported sale prices per share of perpetual strike preferred stock for the five consecutive trading days ending on, and including, the trading day immediately before the date on which we send the related redemption notice), plus accumulated and unpaid regular dividends to, but excluding, the redemption date. If a “fundamental change” (as defined in this prospectus supplement) occurs, then, except as described in this prospectus supplement, preferred stockholders will have the right (which we refer to as the “fundamental change repurchase right”) to require us to repurchase some or all of their shares of perpetual strike preferred stock at a cash repurchase price equal to the liquidation preference of the perpetual strike preferred stock to be repurchased, plus accumulated and unpaid regular dividends, if any, to, but excluding the fundamental change repurchase date. Our business and an investment in the perpetual strike preferred stock involve significant risks. These risks are described under the caption “ Risk Factors”