Company: MSTR
Filing Date: 2025-07-07
Form Type: 8-K
Source: 0000950170-25-094137
Chunk: 69

Company: Strategy Inc
Filing Date: 2025-07-07
Form: 8-K
Item: Item 8.01
Chunk 69
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 made on the Preferred Stock or common stock. If any assets remain after any liquidation senior stock is paid in full, those assets will first be distributed pro rata to our holders of STRF Stock and any series of preferred stock with liquidation parity with our STRF Stock, then pro rata among holders of our STRK Stock and any series of preferred stock with liquidation parity with our STRK Stock, then pro rata among holders of our STRD Stock and any series of preferred stock with liquidation parity with our STRD Stock, with any remaining assets distributed to holders of our common stock. There may be insufficient remaining assets available to pay the Liquidation Preference and unpaid accumulated dividends on our STRF Stock, in which case holders of our STRK Stock, STRD Stock and common stock would not receive any value for their shares.

If we issue any dividend senior stock in the future, such dividend senior stock could contain provisions that prohibit us from paying accumulated dividends on our Preferred Stock, or from purchasing, redeeming or acquiring our Preferred Stock until and unless we first pay accumulated dividends in full on such dividend senior stock.

As of June 30, 2025, excluding intercompany indebtedness, we had approximately $8.24 billion in aggregate principal amount of consolidated indebtedness outstanding, all of which ranks senior to our Preferred Stock and our common stock.

In addition, our subsidiaries have no obligation to pay any amounts on the Preferred Stock. If any of our subsidiaries liquidates, dissolves or winds up, whether voluntarily or involuntarily, then we, as a direct or indirect common equity owner of that subsidiary, will be subject to the prior claims of that subsidiary’s creditors, including trade creditors and preferred equity holders, if any. We may never receive any amounts from that subsidiary, and, accordingly, the assets of that subsidiary may never be available to make payments on the Preferred Stock.

We may not have sufficient funds to pay dividends in cash on our Preferred Stock, or we may choose not to pay dividends on our Preferred Stock and regulatory and contractual restrictions may prevent us from declaring or paying dividends

We expect to fund any dividends paid in cash on our Preferred Stock primarily through additional capital raising activities, including, but not limited to, at-the-market offerings of our class A common stock, in the case of our STRF Stock, offerings of our STRK Stock or STRD Stock and, in the case of our STRK Stock, offerings of our STRD Stock. However, our ability to declare and pay cash dividends on our