Company: MSTR
Filing Date: 2025-07-07
Form Type: 424B5
Source: 0001193125-25-155880
Chunk: 69

Company: Strategy Inc
Filing Date: 2025-07-07
Form: 424B5
Chunk 69
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. Holders—Deemed Distributions on the Offered Shares,” if shares of STRD Stock (including the Offered
Shares) are sold at a discount, such shares may be subject to rules that require the accrual of such discount (or a greater discount than the discount that applies to any other shares of STRD Stock) currently over the deemed term of the STRD Stock
as deemed distributions under U.S. tax rules similar to those governing original issue discount for debt instruments. Due to fungible trading of the STRD Stock, the IRS or a withholding agent may treat any such discount as resulting in deemed
distributions with respect to all shares of STRD Stock, including those not issued at a discount (or issued at a lesser discount). Because any such deemed distributions received by a holder would not give rise to any cash from which any applicable
withholding could be satisfied, we may, at our option (or an applicable withholding agent may) set off such payments against, or withhold such taxes from, payments of cash to the holder or sales proceeds received by, or other funds or assets of, the
holder, or require alternative arrangements in respect of such withholding taxes.

Fast-PayStock Regulations

Under Treasury Regulations promulgated under Section 7701(l) of the Code (the “Fast-Pay Stock
Regulations”), if stock of a corporation is structured such that dividends paid with respect to the stock are economically (in whole or in part) a return of the stockholder’s investment (rather than a return on the stockholder’s
investment), then the stock is characterized as “fast-pay stock” and is subject to adverse tax reporting requirements and potentially penalties, as described below. In addition, under the Fast-Pay Stock Regulations, unless clearly demonstrated otherwise, stock is presumed to be fast-pay stock if it is structured to have a dividend that is reasonably expected to
decline (as opposed to a dividend rate that is reasonably expected to fluctuate or remain constant) (for such purpose, the dividend rate may be viewed as reasonably expected to decline if we are reasonably expected to stop paying regular dividends
on the STRD Stock) or is issued for an amount that exceeds (by more than a de minimis amount, as determined under applicable Treasury Regulations) the amount at which the stockholder can be compelled to dispose of the stock. It is not clear what
amount would constitute “de minimis” in the case of stock with a perpetual term.

The determination of whether stock is fast-pay stock is