Company: MSTR
Filing Date: 2025-05-22
Form Type: 424B5
Source: 0001193125-25-124554
Chunk: 23

Company: Strategy Inc
Filing Date: 2025-05-22
Form: 424B5
Chunk 23
---
 strife preferred stock or (ii) if the perpetual strife preferred stock is issued at a discount. The liquidation preference of the perpetual strife preferred stock is subject to adjustment in the manner described in this prospectus supplement, 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 perpetual strife preferred 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 perpetual strife preferred stock. In either case, any increase in the liquidation preference could give rise to a deemed dividend to holders of perpetual strife preferred stock. Although the matter is not entirely clear, we believe any such adjustment of liquidation preference in the manner described in this prospectus supplement, S-19

deferred dividend or discount should not be treated as giving rise to a deemed distribution on the perpetual strife preferred 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 perpetual strife preferred stockholder 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 perpetual strife
preferred 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 perpetual strife
preferred stock, we (or an applicable withholding agent) may set off any such payment against, or withhold such taxes from, payments of cash payable to such holder of perpetual strife preferred stock or sales proceeds received by, or other funds or
assets of, such holder of perpetual strife preferred stock, or require alternative arrangements with respect to such withholding taxes.

The application
of the rules under Section 305 of the Code to the perpetual strife preferred stock is uncertain, and holders of perpetual strife preferred stock should consult their tax advisors about the impact of these rules in their particular situations.

Holders of perpetual strife preferred stock may not be entitled to the dividends-received deduction or preferential tax rates applicable to qualified dividend income.

Distributions paid to corporate U.S. holders may be