Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 593

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 593
---
, of our class A common stock remained available for issuance and sale pursuant to the October 2024 Sales Agreement.  To the extent we make sales under the October 2024 Sales agreement, we can use the net proceeds from such sales for general corporate purposes, including the acquisition of bitcoin and for working capital.  See “—At-the-Market Equity Offerings” below.

Contractual and Other Obligations

Our material contractual obligations (explained in further detail in the Notes to the Consolidated Financial Statements, as referenced below) and cash requirements consist of:

•principal and interest payments related to our long-term debt (Note 8, Long-term Debt), which includes:

oprincipal due upon maturity of our long-term debt instruments in the aggregate of $7.272 billion;

o$3.2 million in coupon interest due each semi-annual period for the 2028 Convertible Notes;  

o$2.5 million in coupon interest due each semi-annual period for the 2030 Convertible Notes;  

o$2.6 million in coupon interest due each semi-annual period for the 2031 Convertible Notes; 

o$9.0 million in coupon interest due each semi-annual period for the 2032 Convertible Notes; and 

o$0.1 million due monthly in principal and interest related to our other long-term secured debt; 

•payments under various purchase agreements, primarily related to third-party cloud hosting services, third-party software supporting our products, marketing, and operations, and a new corporate aircraft (Note 9, Commitments and Contingencies);

•rent payments under noncancellable operating leases (Note 7, Leases);

•payments related to the Transition Tax (Note 9, Commitments and Contingencies); and

•ongoing personnel-related expenditures and vendor payments. 

In addition, on February 5, 2025 we issued and sold 7,300,000 shares of our 8.00% Series A Perpetual Strike Preferred Stock (“Series A Strike Preferred”), at a price to the public of $80.00 per share, for net proceeds of approximately $563.4 million, after deducting the underwriting discounts and commissions and our estimated offering expenses. We listed the Series A Strike Preferred for trading on the Nasdaq Global Select Market under the symbol “STRK” and trading commenced on February 6, 2025.  The outstanding shares of Series A Strike Preferred have an aggregate liquidation preference of $730.