Company: MSTR
Filing Date: 2025-02-05
Form Type: 8-K
Source: 0001193125-25-020868
Chunk: 0

Company: Strategy Inc
Filing Date: 2025-02-05
Form: 8-K
Item: Item 3.03
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Item 3.03.      Material Modification to Rights of Security Holders.  

On February 5, 2025, MicroStrategy Incorporated d/b/a Strategy (“ Strategy”) issued 7,300,000 shares of a new class of its capital stock titled “8.00% Series A Perpetual Strike Preferred Stock” (the “perpetual strike preferred stock”) in a public offering (the “ Offering”) registered under the Securities Act of 1933, as amended (the “ Securities Act”). In connection with the issuance of perpetual strike preferred stock, Strategy filed a Certificate of Designations (the “ Certificate of Designations”) with the Secretary of State of the State of Delaware designating an aggregate of 7,300,000 shares of, and establishing the terms of, the perpetual strike preferred stock.

The perpetual strike preferred stock has a par value of $0.001 per share and a liquidation preference of $100 per share. The perpetual strike preferred stock will rank senior to Strategy’s class A common stock, $0.001 par value per share (the “ Class A Common Stock”), and class B common stock, $0.001 par value per share (the “ Class B Common Stock”), with respect to the payment of dividends and the distribution of assets upon Strategy’s liquidation, dissolution or winding up. If Strategy liquidates, dissolves or winds up, whether voluntarily or involuntarily, then the holders of the perpetual strike preferred stock will be entitled to receive payment for the liquidation preference of, and all accumulated and unpaid Regular Dividends (as defined below) on, their perpetual strike preferred stock out of Strategy’s assets or funds legally available for distribution to its stockholders, before any such assets or funds are distributed to, or set aside for the benefit of, holders of the Class A Common Stock, Class B Common Stock or other junior stock. The perpetual strike preferred stock will be junior to Strategy’s existing and future indebtedness, structurally junior to the liabilities of Strategy’s subsidiaries and subject to the rights and preferences of any other class or series of preferred stock then outstanding.

The perpetual strike preferred stock will accumulate cumulative dividends (“ Regular Dividends”) at a rate per annum equal to 8.00% on the liquidation preference thereof (the “ Regular Dividend Rate”), and will be payable when, as and if declared by Strategy’s board of directors, out of funds legally available for their payment to the extent paid in cash, quarterly in arrears on March 31, June