Company: MSTR
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001193125-25-263719
Chunk: 23

Company: Strategy Inc
Filing Date: 2025-11-04
Form: 424B5
Chunk 23
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 all cases, these disclosures refer only to our current intent as of the time of the applicable disclosure; they are neither a guarantee that the STRC Stock will trade at a specified price in response to any
changes to the monthly regular dividend rate per annum, nor a guarantee that we will make any specific adjustment to the monthly regular dividend rate per annum. Moreover, we are free to abandon our stated intent, as described above, or any policies
or frameworks that we may subsequently disclose publicly, at any time in our sole and absolute discretion and without the consent of any preferred stockholder. See “Risk Factors—Risks Related to the STRC Stock and This Offering—Our
right to unilaterally reduce the regular dividend rate could cause the STRC Stock to accumulate dividends at rates that are below those of otherwise comparable instruments, could cause the trading price or value of the STRC Stock to decrease, and
could otherwise significantly harm investors” above.

Holders of STRC Stock may be treated as receiving deemed distributions, and consequently may be subject to tax with respect to the STRC Stock under certain circumstances, even though no corresponding distribution of cash has been made.

Under Section 305 of the Internal Revenue Code of 1986, as amended (the “Code”), holders of STRC Stock may be treated as receiving a deemed
distribution on the STRC Stock under certain circumstances, including (i) an increase in the liquidation preference of the STRC Stock, (ii) if the STRC Stock is issued at a discount or (iii) if we can call the STRC Stock at a price
above its issue price. The liquidation preference of the STRC Stock is subject to adjustment in the manner described in this STRC Stock Annex, which adjustment may result in an increase in the liquidation preference. In addition, if our board of
directors does not declare a dividend on the STRC Stock in respect of any dividend period before the related dividend payment date, the deferred dividend may be treated as an increase in the liquidation preference of the STRC Stock. In either case,
any increase in the liquidation preference could give rise to a deemed dividend to holders of STRC Stock. Although the matter is not entirely clear, we believe any such adjustment of liquidation preference in the manner described in this STRC Stock
Annex, deferred dividend, discount or call premium should not be treated as giving rise to a deemed distribution on the STRC Stock. However, there is no assurance that the Internal Revenue Service (the “