Company: MSTR
Filing Date: 2025-07-31
Form Type: 424B5
Source: 0001193125-25-170517
Chunk: 39

Company: Strategy Inc
Filing Date: 2025-07-31
Form: 424B5
Chunk 39
---
 so the ability to generate a return on investment from the net proceeds from this offering will depend on whether there is appreciation in the value of bitcoin following our purchases of bitcoin
with the net proceeds from this offering. Future fluctuations in bitcoin trading prices may result in our converting bitcoin purchased with the net proceeds from this offering into cash with a value substantially below the net proceeds from this
offering.

The accounting method for the STRC Stock may result in lower reported net earnings attributable to common stockholders.

The accounting method for reflecting the provisions of the STRC Stock in our financial statements may adversely affect our reported earnings. We expect that
applicable accounting standards will require us to separately account for certain redemption features associated with the STRC Stock as embedded derivatives. Under this treatment, any embedded derivatives will be measured at their fair value and
accounted for separately as liabilities that are marked-to-market at the end of each reporting period. For each financial statement period after the issuance of the STRC
Stock, a gain or loss will be reported in our statement of operations to the extent the valuation of any of the embedded derivatives changes from the previous period. This accounting treatment may subject our reported net income (loss) to
significant non-cash volatility.

Furthermore, we have not reached a final determination regarding the accounting
treatment for the STRC Stock, and the description above is preliminary. In addition, accounting standards may change in the future. Accordingly, we may account for the STRC Stock in future periods in a manner that is significantly different than
described above.

Because the STRC Stock is held in book-entry form, holders of the STRC Stock must rely on DTC’s procedures to exercise their rights and remedies.

We initially issued the STRC Stock, and the STRC Stock sold in this offering will be initially issued, in the form of
“global certificates” registered in the name of Cede & Co., as nominee of DTC. Beneficial interests in global certificates are shown on, and transfers of global certificates are effected only through, the records maintained by
DTC. Except in limited circumstances, we will not issue physical certificates representing the STRC Stock. See “Description of STRC Stock—Book Entry, Settlement and Clearance.” Accordingly, if you own a beneficial interest in a global
certificate, then you will not be considered an owner or holder of the STRC Stock. Instead, DTC or its nominee will be the sole holder of the STRC Stock. Payments of cash dividends and other cash amounts on global certificates