Company: MSTR
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001193125-25-263746
Chunk: 16

Company: Strategy Inc
Filing Date: 2025-11-04
Form: 424B5
Chunk 16
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 of these factors
are beyond our control.

Market volatility could significantly harm the market for the STRF Stock, regardless of our financial condition, results of
operations, business, prospects or credit quality.

Holders of STRF Stock may be treated as receiving deemed distributions, and consequently may be subject to tax with respect to the STRF Stock under certain circumstances, even though no corresponding distribution of cash has been made.

Under
Section 305 of the Internal Revenue Code of 1986, as amended (the “Code”), holders of STRF Stock may be treated as receiving a deemed distribution on the STRF Stock under certain circumstances, including (i) an increase in the
liquidation preference of the STRF Stock or (ii) if the STRF Stock is issued at a discount. The liquidation preference of the STRF Stock is subject to adjustment in the manner described in this STRF Stock Annex, which adjustment may result in
an increase in the liquidation preference. In addition, if our board of directors does not declare a dividend on the STRF Stock in respect of any dividend period before the related dividend payment date, the deferred dividend may be treated as an
increase in the liquidation preference of the STRF Stock. In either case, any increase in the liquidation preference could give rise to a deemed dividend to holders of STRF Stock. Although the matter is not entirely clear, we believe any such
adjustment of liquidation preference in the manner described in this STRF Stock Annex, deferred dividend or discount should not be treated as giving rise to a deemed distribution on the STRF Stock. However, there is no assurance that the Internal
Revenue Service (the “IRS”) or an applicable withholding agent will not take a contrary position.

Any deemed distribution will generally be
taxable to the same extent as a cash distribution. In addition, for any holder of STRF Stock that is a “non-U.S. holder” (as defined in “Material United States Federal Income Tax
Considerations”), any deemed distribution could be subject to U.S. federal withholding tax at a 30% rate, or such lower rate as may be specified by an applicable treaty. Because deemed distributions received by a holder of STRF Stock would not
give rise to any cash from which any applicable withholding tax could be satisfied, if we (or an applicable withholding agent) pay withholding (including backup withholding) on behalf of a holder of STRF Stock, we (or an applicable withholding
agent) may set off any such payment against,