Company: MSTR
Filing Date: 2025-02-24
Form Type: 8-K
Source: 0001193125-25-032800
Chunk: 1

Company: Strategy Inc
Filing Date: 2025-02-24
Form: 8-K
Item: Item 1.01
Chunk 1
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, and the principal amount of the notes does not accrete. However, special interest and additional interest may accrue on the notes at a rate per annum not exceeding 0.50% upon the occurrence of certain events relating to the failure to file certain Securities and Exchange Commission reports or to remove certain restrictive legends from the notes. The notes will mature on March 1, 2030, unless earlier repurchased, redeemed or converted. Before December 3, 2029, noteholders have the right to convert their notes only upon the occurrence of certain events. From and after December 3, 2029, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of its class A common stock or a combination of cash and shares of its class A common stock, at the Company’s election. The initial conversion rate is 2.3072 shares of the Company’s class A common stock per $1,000 principal amount of the notes, which represents an initial conversion price of approximately $433.43 per share of the Company’s class A common stock. The conversion rate and conversion price are subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “ Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.

The notes will be redeemable, in whole or in part (subject to certain limitations described below), at the Company’s option at any time, and from time to time, on or after March 5, 2027 and on or before the 20th scheduled trading day immediately before the maturity date, but only if (i) the notes are “ Freely Tradable” (as defined in the Indenture), and all accrued and unpaid special interest and additional interest, if any, has been paid in full, as of the date the Company sends the related redemption notice; and (ii) the last reported sale price per share of the Company’s class A common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends such redemption notice; and (2) the trading day