Company: MSTR
Filing Date: 2025-04-07
Form Type: 8-K
Source: 0001193125-25-073989
Chunk: 6

Company: Strategy Inc
Filing Date: 2025-04-07
Form: 8-K
Item: Item 8.01
Chunk 6
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-dilution adjustments.

Strategy will have the right, at its election, to redeem all, and not less than all, of the Perpetual Strike Preferred Stock, at any time, for cash if the total aggregate liquidation preference of all Perpetual Strike Preferred Stock then outstanding is less than 25% of the aggregate liquidation preference of the Perpetual Strike Preferred Stock issued in the initial issuance of Perpetual Strike Preferred Stock (such a redemption, an “ Optional STRK Redemption”). The redemption price for any Perpetual Strike Preferred Stock to be redeemed pursuant to an Optional STRK Redemption will be a cash amount equal to the liquidation preference of the Perpetual Strike Preferred Stock to be redeemed, plus accumulated and unpaid Regular STRK Dividends to, but excluding, the redemption date.

Strategy will also have the right, at its election, to redeem all, and not less than all, of the Perpetual Strike Preferred Stock, at any time, for cash if a “ Tax Event” (as defined in the Strike Certificate of Designations) occurs (such a redemption, a “ STRK Tax Redemption”). The redemption price for any Perpetual Strike Preferred Stock to be redeemed pursuant to a STRK Tax Redemption will be a cash amount equal to (i) the greater of (1) the liquidation preference of the Perpetual Strike Preferred Stock to be redeemed; and (2) the average of the last reported sale prices per share of Perpetual Strike Preferred Stock for the five consecutive trading days ending on, and including, the trading day immediately before the date on which Strategy sends the related redemption notice, plus (ii) accumulated and unpaid Regular STRK Dividends to, but excluding, the redemption date.

If a “ Fundamental Change” (as defined in the Strike Certificate of Designations) occurs, then, subject to a limited exception, STRK Stockholders will have the right to require Strategy to repurchase some or all of their shares of Perpetual Strike Preferred Stock at a cash repurchase price equal to the liquidation preference of the Perpetual Strike Preferred Stock to be repurchased, plus accumulated and unpaid Regular STRK Dividends, if any, to, but excluding the repurchase date.

The Perpetual Strike Preferred Stock will have voting rights with respect to certain amendments to Strategy’s certificate of incorporation or the Strike Certificate of Designations, certain business combination transactions and certain other matters. However, STRK Stockholders, as such, will not be entitled to vote on