Company: MSTR
Filing Date: 2025-10-06
Form Type: 8-K
Source: 0001193125-25-230977
Chunk: 7

Company: Strategy Inc
Filing Date: 2025-10-06
Form: 8-K
Item: Item 8.01
Chunk 7
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 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 September 30, 2025 (in thousands):

                               September 30, 2025                                                                                              
                               Outstanding                            Unamortized                                                              
                               Principal Amount                       Issuance Costs                                                           
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                               Amount                                 Leveling                                                                 
  2028 Convertible Notes       $                       1,010,000      $                    (8,317      1,001,683       1,920,212      Level 2  
  2029 Convertible Notes                               3,000,000                          (19,505      2,980,495       2,707,500      Level 2  
  2030A Convertible Notes                                800,000                          (11,879        788,121       1,783,280      Level 2  
  2030B Convertible Notes                              2,000,000                          (12,136      1,987,864       2,091,400      Level 2  
  2031 Convertible Notes                                 603,661                           (7,433        596,228         948,412      Level 2  
  2032 Convertible Notes                                 800,000                          (10,567        789,433       1,425,200      Level 2  
  Total                        $                       8,213,661      $                   (69,837      8,143,824      10,876,004               

The fair value of the Convertible Notes is determined using observable market data other than quoted prices, specifically the last traded price at the end of the reporting period of identical instruments in the over-the-countermarket (Level 2).

For the three months ended September 30, 2025, the Company incurred $8.6 million in interest expense and paid $8.3 million in interest related to the Convertible Notes. The Company has not paid any additional interest or special interest related to the Convertible Notes to date.

Other long-term secured debt

In June 2022, the Company, through a wholly-owned subsidiary, entered into a secured term loan agreement in the amount of $11.1 million, bearing interest at an annual rate of 5.2%, and