Company: MSTR
Filing Date: 2025-04-07
Form Type: 8-K
Source: 0001193125-25-073989
Chunk: 5

Company: Strategy Inc
Filing Date: 2025-04-07
Form: 8-K
Item: Item 8.01
Chunk 5
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 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 STRK Dividend Payment Date. However, the number of shares of class A common stock that Strategy will deliver as payment for any declared Regular STRK Dividend will be limited to a maximum number equal to the total dollar amount of the declared Regular STRK Dividend (including any portion thereof that Strategy has elected to pay in shares of class A common stock) divided by the “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 STRK Dividend (or any portion thereof) on the Perpetual Strike Preferred Stock is not paid on the applicable Regular STRK Dividend Payment Date (or, if such Regular STRK Dividend Payment Date is not a business day, the next business day), then additional Regular STRK Dividends (“ Compounded STRK Dividends”) will accumulate on the amount of such unpaid Regular STRK Dividend, compounded quarterly at the Regular STRK Dividend Rate, from, and including, such Regular STRK Dividend Payment Date to, but excluding, the date the same, including all Compounded STRK Dividends thereon, is paid in full.

In certain cases where Strategy has not declared and paid accumulated Regular STRK 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 “ STRK 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 cash in lieu of any fractional share of class A common stock) at the then-applicable conversion rate. The initial conversion rate is 0.1000 shares of class A common stock per share of Perpetual Strike Preferred Stock, which represents an initial conversion price of $1,000.00 per share of class A common stock, and is subject to customary anti