Company: MSTR
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001193125-25-263719
Chunk: 72

Company: Strategy Inc
Filing Date: 2025-11-04
Form: 424B5
Chunk 72
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disqualified preferred stock” for purposes of the extraordinary dividend

SA-42

rules. The liquidation preference of the STRC Stock is subject to adjustment in the manner described in this STRC Stock Annex. It is not entirely clear how such an adjustable liquidation
preference would be treated for purposes of applying the rules governing disqualified preferred stock and extraordinary dividends. However, it is possible that such adjustment may be taken into account for purposes of the disqualified preferred
stock determination. Even if your Offered Shares are not issued at such a price, due to fungible trading of the STRC Stock, your Offered Shares may be considered disqualified preferred stock unless you can clearly demonstrate that you purchased the
Offered Shares in an offering other than one in which shares of STRC Stock are issued at such a price. If the Offered Shares held by a corporate U.S. holder were considered disqualified preferred stock (including because such shares are
indistinguishable from other shares of STRC Stock that are disqualified preferred stock) for any dividend received, the holder generally will be required to reduce its tax basis (but not below zero) in the Offered Shares with respect to which the
dividend is received by the non-taxed portion of the dividend. Please also review the discussion above under “U.S. Holders—Distributions” for a discussion of extraordinary dividends.

Sales at a Discount

As discussed above under
“U.S. Holders—Deemed Distributions on the Offered Shares,” if shares of STRC Stock (including the Offered Shares) are sold at a discount, such shares may be subject to rules that require the accrual of such discount (or a greater
discount than the discount that applies to any other shares of STRC Stock) currently over the deemed term of the STRC Stock as deemed distributions under U.S. tax rules similar to those governing original issue discount for debt instruments. Due to
fungible trading of the STRC Stock, the IRS or a withholding agent may treat any such discount as resulting in deemed distributions with respect to all shares of STRC Stock, including those not issued at a discount (or issued at a lesser discount).
Because any such deemed distributions received by a holder would not give rise to any cash from which any applicable withholding could be satisfied, we may, at our option (or an applicable withholding agent may) set off such payments against, or
withhold such taxes from, payments of cash to the holder or sales proceeds received by, or other funds or assets of,