Company: MSTR
Filing Date: 2025-07-31
Form Type: 424B5
Source: 0001193125-25-170517
Chunk: 32

Company: Strategy Inc
Filing Date: 2025-07-31
Form: 424B5
Chunk 32
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 Income Tax Considerations”), any deemed distribution could be subject to U.S. federal withholding tax at a 30% rate, or such lower
rate as may be specified by an applicable treaty. Because deemed distributions received by a holder of STRC Stock would not give rise to any cash from which any applicable withholding tax could be satisfied, if we (or an applicable withholding
agent) pay withholding (including backup withholding) on behalf of a holder of STRC Stock, we (or an applicable withholding agent) may set off any such payment against, or withhold such taxes from, payments of cash to such holder of STRC Stock or
sales proceeds received by, or other funds or assets of, such holder of STRC Stock, or require alternative arrangements with respect to such withholding taxes.

The application of the rules under Section 305 of the Code to the STRC Stock is uncertain, and holders of STRC Stock should consult their tax advisors
about the impact of these rules in their particular situations.

Holders of STRC Stock may not be entitled to the dividends-received deduction or preferential tax rates applicable to qualified dividend income.

Distributions paid to corporate U.S. holders may be eligible for the
dividends-received deduction and distributions paid to non-corporate U.S. holders may be subject to tax at the preferential tax rates applicable to “qualified dividend income” if we have current or
accumulated earnings and profits, as determined for U.S. federal income tax purposes and certain holding period and other requirements are met. We may not have sufficient current or accumulated earnings and profits during any fiscal year for the
distributions on the STRC Stock to qualify as dividends for U.S. federal income tax purposes. If any distributions on the STRC Stock with respect to any fiscal year are not eligible for the dividends-received deduction or for the preferential tax
rates applicable to “qualified dividend income” because of insufficient current or accumulated earnings and profits, the trading price of the STRC Stock may decline.

The tax rules applicable to “fast-paystock” could result in adverse consequences to holders of STRC Stock.

Under Treasury Regulations promulgated under Section 7701(l) of the Code (the “Fast-Pay
Stock Regulations”), if stock of a corporation is structured such that dividends paid with respect to the stock are economically (in whole or in part) a return of the stockholder’s investment (rather than a return on the stockholder’s
investment), then the stock is characterized as “fast-pay stock