Company: MSTR
Filing Date: 2025-02-05
Form Type: 8-K
Source: 0001193125-25-020868
Chunk: 2

Company: Strategy Inc
Filing Date: 2025-02-05
Form: 8-K
Item: Item 3.03
Chunk 2
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 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-dilution adjustments.

Strategy will have the right, at its election, to redeem all, and not less than all, of the perpetual strike preferred stock, at any time, for cash if the total aggregate liquidation preference of all perpetual strike preferred stock then outstanding is less than 25% of the aggregate liquidation preference of the perpetual strike preferred stock issued in the Offering (such a redemption, an “ Optional Redemption”). The redemption price for any perpetual strike preferred stock to be redeemed pursuant to an Optional Redemption will be a cash amount equal to the liquidation preference of the perpetual strike preferred stock to be redeemed, plus accumulated and unpaid Regular Dividends to, but excluding, the redemption date.

Strategy will also have the right, at its election, to redeem all, and not less than all, of the perpetual strike preferred stock, at any time, for cash if a “ Tax Event” (as defined in the Certificate of Designations) occurs (such a redemption, a “ Tax Redemption”). The redemption price for any perpetual strike preferred stock to be redeemed pursuant to a Tax Redemption will be a cash amount equal to (i) the greater of (1) the liquidation preference of the perpetual strike preferred stock to be redeemed; and (2) the average of the last reported sale prices per share of perpetual strike preferred stock for the five consecutive trading days ending on, and including, the trading day immediately before the date on which Strategy sends the related redemption notice, plus (ii) accumulated and unpaid Regular Dividends to, but excluding, the redemption date.

If a “ Fundamental Change” (as defined in the Certificate of Designations) occurs, then, subject to a limited exception, Preferred Stockholders will have the right to require Strategy to repurchase some or all of their shares of perpetual strike preferred stock at a cash repurchase price equal to the liquidation preference of the perpetual strike preferred stock to be repurchased, plus accumulated and unpaid Regular Dividends, if any, to, but excluding the repurchase date.

The perpetual strike preferred stock will have voting rights with respect to certain amendments to Strategy’s certificate of incorporation or the Certificate of Designations, certain business combination transactions