Company: MSTR
Filing Date: 2025-11-04
Form Type: 424B5
Source: 0001193125-25-263900
Chunk: 27

Company: Strategy Inc
Filing Date: 2025-11-04
Form: 424B5
Chunk 27
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, which could reduce, or eliminate
entirely, the number of shares available for lending in connection with short sale transactions and the number of counterparties willing to enter into an equity swap on our class A common stock with an investor of the STRK Stock. These and other
market events could make implementing a convertible arbitrage strategy prohibitively expensive or infeasible. If investors in this offering or potential purchasers of the STRK Stock that seek to employ a convertible arbitrage strategy are unable to
do so on commercial terms, or at all, then the trading price of, and the liquidity of the market for, the STRK Stock may significantly decline.

Holders of STRK Stock may be treated as receiving deemed distributions and/or receive distributions paid in class A common stock, and consequently may be subject to tax with respect to the STRK 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 STRK Stock may be treated as receiving a deemed
distribution on the STRK Stock under certain circumstances, including (i) an increase in the liquidation preference of the STRK Stock or (ii) if the STRK Stock is issued at a discount. Upon ratification of the STRK Amendment, the
liquidation preference of the STRK Stock is subject to adjustment in the manner described in the STRK Stock certificate of designations, which adjustments may give rise to a deemed distribution to holders of the STRK Stock. In addition, if our board
of directors does not declare a dividend on the STRK 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 STRK Stock that gives
rise to a deemed dividend to holders of STRK Stock. Although the matter is not entirely clear, we believe such deferred dividend or discount (or, upon ratification of the STRK Amendment, adjustment of the liquidation preference of the STRK Stock in
accordance with its terms) should not be treated as giving rise to a deemed distribution on the STRK Stock. However, there is no assurance that the IRS or an applicable withholding agent will not take a contrary position.

In addition, the conversion rate of the STRK Stock is subject to adjustment in certain circumstances. If and to the extent that certain adjustments in the
conversion rate (or failures to adjust the conversion rate) increase the proportionate interest