Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 166

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 166
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. The Monte Carlo simulation takes into consideration the assumptions noted below, in addition to the probability that the market condition will be achieved based on predicted stock price paths compared to peer companies in the Nasdaq Composite Index. The Company did not grant any performance awards prior to 2023. The weighted average grant date fair value of performance stock units using the Monte-Carlo simulation model was $486.18 for each performance stock unit granted during the year ended December 31, 2023 based on the following assumptions:

|                                  |     | Year ending December 31, 
                     2023 |
|:---------------------------------|:----|-------------------------:|
| Expected term of awards in years |     |                      3.0 |
| Expected volatility              |     |                    95.6% |
| Risk-free interest rate          |     |                     4.1% |
| Expected dividend yield          |     |                     0.0% |

Since the Company accounts for forfeitures as they occur, as long as the performance stock unit recipient provides service to the Company during the requisite service period, share-based compensation expense associated with the grant date fair value of the performance stock units is recognized ratably over the performance period, regardless of the Company’s actual level of achievement against the TSR Goal.

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TABLE OF CONTENTS

As of December 31, 2023, there were 25,375 performance stock units outstanding under the 2023 Equity Plan. The following table summarizes the Company’s performance stock unit activity (in thousands) for the period indicated:

| Units                                    
 Balance as of January 1, 2023            |     | Share-Settled Performance Stock Units Outstanding 
                                         Aggregate 
                                   Intrinsic Value 
                                                 0 |     |         |
|:-----------------------------------------|:----|--------------------------------------------------:|:----|--------:|
| Granted                                  |     |                                                27 |     |         |
| Vested                                   |     |                                                 0 |     |      $0 |
| Forfeited                                |     |                                                -2 |     |         |
| Balance as of December 31, 2023          |     |                                                25 |     |         |
| Expected to vest as of December 31, 2023 |     |                                                25 |     | $32,055 |

No performance stock units vested during the year ended December 31, 2023. For the year ended December 31, 2023, the Company recognized approximately $2