Company: MSTR
Filing Date: 2025-07-07
Form Type: 8-K
Source: 0000950170-25-094137
Chunk: 16

Company: Strategy Inc
Filing Date: 2025-07-07
Form: 8-K
Item: Item 8.01
Chunk 16
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 ending on, and including, June 30, 2025 was greater than or equal to 130% of the conversion price of each of the 2028 Convertible Notes, 2030A Convertible Notes, 2031 Convertible Notes and 2032 Convertible Notes on each applicable trading day. Therefore, the 2028 Convertible Notes, 2030A Convertible Notes, 2031 Convertible Notes and 2032 Convertible Notes are convertible at the option of the holders of the respective Convertible Notes during the third quarter of 2025.

As of June 30, 2025, the Company has not redeemed any of the Convertible Notes.

As of June 30, 2025, the net carrying value of the Convertible Notes were considered long-term liabilities.

The following table shows the net carrying value and fair value of the Company’s convertible debt instruments as of June 30, 2025 (in thousands):

                               June 30, 2025                                                                                                  
                               Outstanding                          Unamortized                                                               
                               Principal Amount                     Issuance Costs                                                  Leveling  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  2028 Convertible Notes       $                     1,010,000      $                    (9,366      1,000,634       2,356,465      Level 2   
  2029 Convertible Notes                             3,000,000                          (21,325      2,978,675       2,826,180      Level 2   
  2030A Convertible Notes                              800,000                          (12,865        787,135       2,212,718      Level 2   
  2030B Convertible Notes                            2,000,000                          (13,386      1,986,614       2,347,154      Level 2   
  2031 Convertible Notes                               603,661                           (8,048        595,613       1,143,397      Level 2   
  2032 Convertible Notes                               800,000                          (11,244        788,756       1,587,442      Level 2   
  Total                        $                     8,213,661      $                   (76,234      8,137,427      12,473,356                

The fair value of the Convertible