Company: MSTR
Filing Date: 2025-02-24
Form Type: 8-K
Source: 0001193125-25-032800
Chunk: 0

Company: Strategy Inc
Filing Date: 2025-02-24
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01.      Entry into a Material Definitive Agreement.  

Convertible Notes Offering

On February 21, 2025, MicroStrategy®Incorporated d/b/a Strategy™(“ Strategy” or the “ Company”) completed its previously announced private offering of its 0% convertible senior notes due 2030 (the “notes”). The notes were sold under a purchase agreement, dated as of February 19, 2025, entered into by and between Strategy and Morgan Stanley & Co. LLC, as representative of the several initial purchasers named therein (the “ Initial Purchasers”), for resale only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “ Securities Act”). The aggregate principal amount of the notes sold in the offering was $2 billion. Strategy also granted to the Initial Purchasers an option to purchase, for settlement within a period of five business days from, and including, the date on which the notes were first issued, up to an additional $300 million aggregate principal amount of notes.

The net proceeds from the sale of the notes were approximately $1.99 billion, after deducting fees and estimated expenses.

Strategy intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital.

Indenture and the Notes

On February 21, 2025, Strategy entered into an indenture (the “ Indenture”) with respect to the notes with U. S. Bank Trust Company, National Association, as trustee (the “ Trustee”). The notes are the Company’s senior, unsecured obligations and are: (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the notes; (iii) senior in right of payment to the Company’s existing and future preferred equity (including the Company’s 8.00% series A perpetual strike preferred stock); (iv) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (v) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

The notes do not bear regular interest