Company: MSTR
Filing Date: 2025-01-06
Form Type: 8-K
Source: 0001193125-25-001854
Chunk: 10

Company: Strategy Inc
Filing Date: 2025-01-06
Form: 8-K
Item: Item 8.01
Chunk 10
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  2031 Convertible Notes                               603,750                           (9,274        594,476         877,559      Level 2  
  2032 Convertible Notes                               800,000                          (12,583        787,417       1,324,602      Level 2  
  Total                       $                      7,263,750      $                   (81,753      7,181,997      10,369,119               

The fair value of the Convertible Notes is determined using observable market data other than quoted prices, specifically the last traded price at the end of the reporting period of identical instruments in the over-the-countermarket (Level 2).

For the year ended December 31, 2024, the Company incurred $36.0 million in interest expense and paid $16.5 million in interest related to the Convertible Notes and to the Company’s 0.750% Convertible Senior Notes due 2025, which were fully converted or redeemed during 2024. The Company has not paid any additional interest or special interest related to the Convertible Notes to date.

Other long-term secured debt

In June 2022, the Company, through a wholly-owned subsidiary, entered into a secured term loan agreement in the amount of $11.1 million, bearing interest at an annual rate of 5.2%, and maturing in June 2027. The loan is secured by certain non-bitcoinassets of the Company that are not otherwise serving as collateral for any of the Company’s other indebtedness. After monthly payments made under the terms of the agreement, the loan had a net carrying value of $9.7 million and an outstanding principal balance of $9.8 million as of December 31, 2024.

Maturities

The following table shows the maturities of the Company’s debt instruments as of December 31, 2024 (in thousands). The principal payments related to the 2028 Convertible Notes, 2029 Convertible Notes, 2030 Convertible Notes, 2031 Convertible Notes, and 2032 Convertible Notes are included in the table below as if the holders exercised their right to require the Company to repurchase all of the respective convertible notes on their respective Date of Holder Put Option.

  Payments due by                                                                                                   
     period ended                                                                                                   
     December 31,                                                                                                   
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