Company: MSTR
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001193125-25-263746
Chunk: 19

Company: Strategy Inc
Filing Date: 2025-11-04
Form: 424B5
Chunk 19
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 not expected that any Offered Shares or Additional Shares would be issued at such a level of premium above their liquidation preference at the time of sale
of the Offered Shares or Additional Shares so as to implicate the fast-pay stock rules. Nonetheless, there may be increased risk that the IRS could assert that such Offered Shares or Additional Shares
constitute fast-pay stock.

Transactions involving fast-pay stock
arrangements are treated as “listed transactions” for U.S. federal income tax purposes. Issuers and holders of any shares of fast-pay stock would be required to report their participation in the
transaction on IRS Form 8886 on an annual basis with their U.S. federal income tax returns and would also be required to mail a copy of that form to the IRS Office of Tax Shelter Analysis. Failure to comply with those disclosure requirements could
result in the assessment by the IRS of interest, additions to tax and onerous penalties. In addition, an accuracy-related penalty applies under the Code to any reportable transaction understatement attributable to a listed transaction if a
significant purpose of the transaction is the avoidance or evasion of U.S. federal income tax. Furthermore, certain material advisors would also be required to file a disclosure statement with the IRS. If we determine that we are required to file an
IRS Form 8886 (including a protective filing) in connection with the potential issuance of fast-pay stock with respect to any STRF Stock, we intend to provide public notice to the applicable holders of the
STRF Stock, which notice may be by a press release, by publication on our investor relations website, or by filing a current report on Form 8-K with the Securities and Exchange Commission.

Notwithstanding our intent not to issue STRF Stock that would be fast-pay stock, the rules regarding the definition of
fast-pay stock are unclear in certain respects and, therefore, the IRS could disagree with our determination and treat Offered Shares or Additional Shares as fast-pay
stock. In addition, even if a particular issuance of Offered Shares or Additional Shares is not fast-pay stock, the treatment of any other shares of STRF Stock—including other Offered Shares or any
Additional Shares—as fast-pay stock (for example, as a result of a determination by the IRS) could result in adverse consequences to holders of all shares of STRF Stock because the shares may be
indistinguishable from each other. See “—An issuance of STRF Stock could have an adverse tax profile, which could subject holders of any other