Company: MSTR
Filing Date: 2025-03-10
Form Type: 424B5
Source: 0001193125-25-050408
Chunk: 29

Company: Strategy Inc
Filing Date: 2025-03-10
Form: 424B5
Chunk 29
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 could adversely affect their voting and other rights and economic interests, and could have a similar impact with respect to the perpetual strike preferred stock. If we issue additional shares of perpetual strike preferred stock, shares of class A common stock (including as payment for regular dividends on the perpetual strike preferred stock), or other equity-related securities, the trading price of our class A common stock and the perpetual strike preferred stock may decline. We cannot predict the size of future issuances of our class A common stock, perpetual strike preferred stock or other securities or the effect, if any, that future sales and issuances of our class A common stock, perpetual strike preferred stock and other securities would have on the market price of our class A common stock and the perpetual strike preferred stock. In addition, the existence of the perpetual strike preferred stock may encourage short selling by market participants because the conversion of the perpetual strike preferred stock could be used to satisfy short positions, or anticipated conversion of the perpetual strike preferred stock into shares of class A common stock could depress the price of our class A common stock. The sale or the availability for sale of a large number of shares of class A common stock in the public market could cause the market price of our class A common stock to decline. S-22

Recent and future regulatory actions, changes in market conditions and other events may adversely affect the trading price and liquidity of the perpetual strike preferred stock and the ability of investors to implement a convertible arbitrage trading strategy.

We expect that many investors in the perpetual strike preferred stock, including potential purchasers of the perpetual strike preferred stock from investors in
this offering, will seek to employ a convertible arbitrage strategy. Under this strategy, investors typically sell short a certain number of shares of our class A common stock and adjust their short position over time while they continue to hold the
perpetual strike preferred stock. Investors may also implement this type of strategy by entering into swaps on our class A common stock in lieu of, or in addition to, short selling shares of our class A common stock.

The SEC and other regulatory authorities have implemented various rules and taken certain actions, and may in the future adopt additional rules and take other
actions, that may impact those engaging in short selling activity involving equity securities (including our class A common stock). These rules and actions include Rule 201 of SEC Regulation SHO, the adoption by the Financial Industry Regulatory
Authority, Inc., and the national securities exchanges of a “limit up-limit down” program, the imposition of market-wide circuit breakers that halt trading of securities