Company: MSTR
Filing Date: 2025-01-06
Form Type: 8-K
Source: 0001193125-25-001854
Chunk: 9

Company: Strategy Inc
Filing Date: 2025-01-06
Form: 8-K
Item: Item 8.01
Chunk 9
---
 Convertible Notes, 2031 Convertible Notes, and 2032 Convertible Notes, respectively.

The Convertible Notes were not convertible at the option of the holders during the year ended December 31, 2024. The Convertible Notes may be convertible in future periods if one or more of the conversion conditions is satisfied during future measurement periods. As of December 31, 2024, the last reported sale price of the Company’s class A common stock for at least 20 trading days during the 30 consecutive trading days ending on, and including, December 31, 2024 was greater than or equal to 130% of the conversion price of each of the 2027 Convertible Notes, 2028 Convertible Notes, 2030 Convertible Notes, 2031 Convertible Notes, and 2032 Convertible Notes on each applicable trading day. Therefore, the 2027 Convertible Notes, 2028 Convertible Notes, 2030 Convertible Notes, 2031 Convertible Notes, and 2032 Convertible Notes are convertible at the option of the holders of the respective Convertible Notes during the first quarter of 2025.

As of December 31, 2024, the Company has not redeemed any of the Convertible Notes.

As of December 31, 2024, the net carrying value of the Convertible Notes were considered long-term liabilities.

The following is a summary of the Company’s convertible debt instruments as of December 31, 2024 (in thousands):

                              December 31, 2024                                                                                              
                              Outstanding                           Unamortized                                                              
                              Principal Amount                      Issuance Costs                                                           
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  2027 Convertible Notes      $                      1,050,000      $                    (8,648      1,041,352       2,134,125      Level 2  
  2028 Convertible Notes                             1,010,000                          (11,457        998,543       1,927,828      Level 2  
  2029 Convertible Notes                             3,000,000                          (24,963      2,975,037       2,447,682      Level 2  
  2030 Convertible Notes                               800,000                          (14,828        785,172       1,657,323      Level 2