Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 190

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 190
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 June 15 and December 15 of each year, beginning on December 15, 2021. The terms of the 2028 Secured Notes are discussed more fully in Note 8, Long-term Debt, to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Company redeemed all of the 2028 Secured Notes on September 26, 2024 at a redemption price equal to 103.063% of the principal amount of the 2028 Secured Notes, plus accrued and unpaid interest to, but excluding, September 26, 2024 (the “Redemption Price”). The Redemption Price consisted of a $515.3 million payment to redeem the full $500.0 million outstanding principal amount of the 2028 Secured Notes as of September 26, 2024 and an $8.6 million payment for accrued unpaid interest on the 2028 Secured Notes to but excluding September 26, 2024. The Company also incurred $0.1 million in third party fees in connection with the redemption of the 2028 Secured Notes. The net carrying value of the 2028 Secured Notes as of September 26, 2024, immediately prior to their redemption, was $492.5 million, which resulted in a $22.9 million loss on debt extinguishment recognized in the Company’s Consolidated Statement of Operations in the third quarter of 2024. As of December 31, 2023, the net carrying value of the 2028 Secured Notes was classified as a long-term liability in the “Long-term debt, net” line item in the Company’s Consolidated Balance Sheet.

F-16

TABLE OF CONTENTS

The following is a summary of the 2028 Secured Notes as of December 31, 2023 (in thousands):

|                    |     | December 31, 2023 |     |              |     |            |     |          |     |         |
|:-------------------|:----|------------------:|:----|:-------------|:----|-----------:|:----|---------:|:----|:--------|
| Outstanding        
 Principal Amount   |     |       Unamortized 
    Issuance Costs |     | Net Carrying 
 Value        |     | Fair Value |     |          |     |         |
| Amount             |     |          Leveling |     |