Company: MSTR
Filing Date: 2025-07-07
Form Type: 8-K
Source: 0000950170-25-094137
Chunk: 7

Company: Strategy Inc
Filing Date: 2025-07-07
Form: 8-K
Item: Item 8.01
Chunk 7
---
 (the “
Stated Amount
”). Regular STRF Dividends are payable solely in cash. If any accumulated Regular STRF Dividend (or any portion thereof) is not paid on the applicable Regular Dividend Payment Date (or, if such Regular Dividend Payment Date is not a business day, the next business day), then additional Regular STRF Dividends (“
Compounded STRF Dividends
” and, together with Compounded STRK Dividends, the “
Compounded Dividends
”) will accumulate on the amount of such unpaid Regular STRF Dividend, compounded quarterly at the Compounded STRF Dividend Rate (as defined below), from, and including, such Regular Dividend Payment Date to, but excluding, the date the same, including all Compounded STRF Dividends thereon, is paid in full. The “
Compounded STRF Dividend Rate
” applicable to any unpaid Regular STRF Dividend that was due on a Regular Dividend Payment Date (or, if such Regular Dividend Payment Date is not a business day, the next business day) will initially be a rate per annum equal to the Regular STRF Dividend Rate plus 100 basis points;
provided,
however, that until such Regular STRF Dividend, together with Compounded STRF Dividends thereon, is paid in full, such Compounded STRF Dividend Rate will increase by 100 basis points per annum for each subsequent Regular STRF Dividend period, up to a maximum rate of 18% per annum. If Strategy fails to declare a Regular STRF Dividend on or prior to the record date applicable to a Regular Dividend Payment Date, such failure will constitute the issuance of a notice of deferral. Upon issuance of such notice, Strategy will use its commercially reasonable efforts over the following 60-day period to sell class A common stock and/or other securities to raise proceeds in an amount sufficient to cover any deferred dividends that would have been due with respect to the applicable Regular Dividend Payment Date, plus Compounded STRF Dividends thereon.

• STRD Stock accrues non-cumulative dividends (“
Regular STRD Dividends
” and, together with Regular STRF Dividends and Regular STRK Dividends, “
Regular Dividends
”) at a rate per annum equal to 10.00% of the Stated Amount. Regular STRD Dividends are payable solely in cash.

In certain cases where Strategy has not