Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 151

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 151
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 effective interest rate of 3.87% until the 2025 Secured Term Loan’s prepayment in March 2023. As of December 31, 2022, the net carrying value of the 2025 Secured Term Loan was classified as a long-term liability in the “Long-term debt, net” line item in the Company’s Consolidated Balance Sheet. The following is a summary of the 2025 Secured Term Loan as of December 31, 2022 (in thousands):

|                        |     | December 31, 2022 |     |                |     |              |     |            |     |         |
|:-----------------------|:----|------------------:|:----|:---------------|:----|-------------:|:----|-----------:|:----|:--------|
|                        |     |       Outstanding 
  Principal Amount |     | Unamortized    
 Issuance Costs |     | Net Carrying 
        Value |     | Fair Value |     |         |
|                        |     |            Amount |     | Leveling       |     |              |     |            |     |         |
| 2025 Secured Term Loan |     |          $205,000 |     | $(312)         |     |     $204,688 |     |   $205,000 |     | Level 3 |

The outstanding principal amount of the 2025 Secured Term Loan approximated its fair value as of December 31, 2022 as the 2025 Secured Term Loan bore interest at a floating rate and was over-collateralized (the Company was required to maintain an LTV ratio of less than 50%). Additionally, the Company had approximately 82,991 unencumbered bitcoins that were available to be pledged as additional collateral at December 31, 2022. No interest expense related to the 2025 Secured Term Loan was recognized after the debt was repaid in full during the first quarter of 2023. For the years ended December 31, 2023 and 2022, interest expense related to the 2025 Secured Term Loan was as follows (in thousands):

|                        |     | Year Ended December 31, 2023 |     |                 |     |        |     | Year Ended December 31, 2022 |     |                 |     |        |
|:-----------------------|:----|-----------------------------:|:----|----------------:|:----