Company: MSTR
Filing Date: 2025-05-22
Form Type: 424B5
Source: 0001193125-25-124554
Chunk: 76

Company: Strategy Inc
Filing Date: 2025-05-22
Form: 424B5
Chunk 76
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 exceeds their liquidation preference, such shares of Perpetual
Strife Preferred Stock would constitute “disqualified preferred stock” for purposes of the extraordinary dividend rules. The liquidation preference of the Perpetual Strife Preferred Stock is subject to adjustment in the manner described in
this prospectus supplement. It is not entirely clear how such an adjustable liquidation preference would be treated for purposes of applying the rules governing disqualified preferred stock and extraordinary dividends. However, it is possible that
such adjustment may be taken into account for purposes of the disqualified preferred stock determination. Even if your Offered Shares are not issued at such a price, due to fungible trading of the Perpetual Strife Preferred Stock, your Offered
Shares may be considered disqualified preferred stock unless you can clearly demonstrate that you purchased the Offered Shares in an offering other than one in which shares of Perpetual Strife Preferred Stock are issued at such a price. If the
Offered Shares held by a corporate U.S. holder were considered disqualified preferred stock (including because such shares are indistinguishable from other shares of Perpetual Strife Preferred Stock that are disqualified preferred stock) for any
dividend received, the holder generally will be required to reduce its tax basis (but not below zero) in the Offered Shares with respect to which the dividend is received by the non-taxed portion of the
dividend. Please also review the discussion above under “U.S. Holders—Distributions” for a discussion of extraordinary dividends.

Sales at a Discount

As discussed
above under “U.S. Holders—Deemed Distributions on the Offered Shares,” if shares of Perpetual Strife Preferred Stock (including the Offered Shares) are sold at a discount, such shares may be subject to rules that require the accrual
of such discount (or a greater discount than the discount that applies to any other shares of Perpetual Strife Preferred Stock) currently over the deemed term of the Perpetual Strife Preferred Stock as deemed distributions under U.S. tax rules
similar to those governing original issue discount for debt instruments. Due to fungible trading of the Perpetual Strife Preferred Stock, the IRS or a withholding agent may treat any such discount as resulting in deemed distributions with respect to
all shares of Perpetual Strife Preferred Stock, including those not issued at a discount (or issued at a lesser discount). Because any such deemed distributions received by a holder would not give rise to any cash from which any applicable