Company: MSTR
Filing Date: 2025-07-07
Form Type: 8-K
Source: 0000950170-25-094137
Chunk: 8

Company: Strategy Inc
Filing Date: 2025-07-07
Form: 8-K
Item: Item 8.01
Chunk 8
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 declared and paid accumulated Regular Dividends in full on the Preferred Stock, then, subject to limited exceptions, Strategy will be prohibited from declaring or paying dividends on or repurchasing any shares of class A common stock, class B common stock or other junior securities (including, in the case of failure to declare and pay Regular STRF Dividends, dividends on the STRK Stock and the STRD Stock, and in the case of failure to declare and pay Regular STRK Dividends, dividends on the STRD Stock).

On June 2, 2025, the Company announced that its board of directors declared a quarterly cash dividend of approximately (i) $2.00 per share payable on the STRK Stock, and (ii) $2.64 per share payable on the STRF Stock. On June 30, 2025, the Company paid $23.5 million with respect to the STRK Stock and $25.6 million with respect to the STRF Stock, in each case to stockholders of record at the close of business on June 15, 2025. The calculation of the STRF Stock per share dividend amount reflects the quarterly dividend accrued from March 25, 2025, the issuance date of the STRF Stock.

Conversion Rights

Subject to certain limitations, holders of the STRK Stock have the right to convert some or all of their shares of STRK Stock on any business day into shares of class A common stock (together, if applicable, with cash in lieu of any fractional share of class A common stock) at the then-applicable conversion rate. The initial conversion rate is 0.1000 shares of class A common stock per share of STRK Stock, which represents an initial conversion price of $1,000.00 per share of class A common stock, and is subject to customary anti-dilution adjustments.

STRD Stock and STRF Stock do not have any conversion rights.

Redemption at Our Option

Redemption Rights

Strategy will have the right, at its election, to redeem all, and not less than all, of any of the series of Preferred Stock, at any time, for cash if, (i) in the case of STRF Stock and STRD Stock, the total number of shares of such series of Preferred Stock then outstanding is less than 25% of the total number of shares of such series Preferred Stock originally issued on the initial issue date for such series of Preferred Stock and in any future offering of such series of Preferred Stock