Company: MSTR
Filing Date: 2025-02-05
Form Type: 8-K
Source: 0001193125-25-020868
Chunk: 1

Company: Strategy Inc
Filing Date: 2025-02-05
Form: 8-K
Item: Item 3.03
Chunk 1
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 30, September 30 and December 31 of each year, beginning on March 31, 2025 (each, a “ Regular Dividend Payment Date”). Declared Regular Dividends on the perpetual strike preferred stock will be payable, at Strategy’s election, in cash, shares of Class A Common Stock or a combination of cash and shares of Class A Common Stock. If Strategy elects to pay any portion of a declared Regular Dividend in shares of Class A Common Stock, then those shares will be valued at 95% of the daily volume-weighted average price per share of Class A Common Stock on the third trading day before the related Regular Dividend Payment Date. However, the number of shares of Class A Common Stock that Strategy will deliver as payment for any declared Regular Dividend will be limited to a maximum number equal to the total dollar amount of the declared Regular Dividend (including any portion thereof that Strategy has elected to pay in shares of Class A Common Stock) divided bythe “floor price,” which initially is equal to $119.03 per share and is subject to customary anti-dilution adjustments. If the number of shares that Strategy delivers is limited as a result of this provision, then Strategy will, to the extent it is legally able to do so, declare and pay the related deficiency in cash.

If any accumulated Regular Dividend (or any portion thereof) on the perpetual strike preferred stock is not paid on the applicable Regular Dividend Payment Date (or, if such Regular Dividend Payment Date is not a business day, the next business day), then additional Regular Dividends

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(“ Compounded Dividends”) will accumulate on the amount of such unpaid Regular Dividend, compounded quarterly at the Regular Dividend Rate, from, and including, such Regular Dividend Payment Date to, but excluding, the date the same, including all Compounded Dividends thereon, is paid in full.

In certain cases where Strategy has not declared and paid accumulated Regular Dividends in full on the perpetual strike preferred stock, then, subject to limited exceptions, Strategy will be prohibited from declaring or paying dividends on or repurchasing any shares of Class A Common Stock, Class B Common Stock or other junior securities.

Subject to certain limitations, holders of the perpetual strike preferred stock (the “ Preferred Stockholders”) will have the right to convert some or all of their shares of perpetual strike preferred stock on any business day into shares of Class A Common Stock (together, if applicable, with