Slide 1: Q1 2025 Financial Results
Q1 2025 Financial Results May 1, 2025 Copyright © 2025 Strategy. All Rights Reserved.
Slide 2: Safe Harbor Statement
Strategy Q1 2025 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS Some of the information we provide in this presentation regarding our future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially from these forward- looking
Slide 3: Q1 2025 Review
Q1 2025 Review Phong Le, President & Chief Executive Officer Copyright © 2025 Strategy. All Rights Reserved.
Slide 4: Join us at Strategy World 2025 in Orlando, FL
Join us at Strategy World 2025 in Orlando, FL Copyright © 2025 Strategy. All Rights Reserved. 4
Slide 5: Bitcoin Highlights
Bitcoin Highlights Bitcoin Holdings • Acquired 106,085 bitcoin YTD 2025 for ~$9.9B at average price of $93,589(2) 553,555 • Current market value of bitcoin holdings ~$52B(1) Acquired for a total cost of $37.9 billion, or $68,459 per bitcoin as of April 27, 2025 • Largest corporate holder of bitcoin
Slide 6: Growth in Bitcoin Strategic Treasury Reserve
Growth in Bitcoin Strategic Treasury Reserve Strategy has acquired additional bitcoin in every quarter since Q3 2020 Represents 2.6% of all Bitcoin in Existence Bitcoin Holdings (in ‘000s) 553.6 553,555 bitcoins held on balance sheet, acquired for 528.2 a total cost of $37.90 billion, or $68,459 per
Slide 7: Bitcoin Treasury Company
Bitcoin Treasury Company Strategy’s unique value proposition Bitcoin Treasury Company (1) Fixed Income Equity Cash $10.6B of total debt issued $1.4B of preferred equity (of which $8.2B aggregate $836M total excess cash raised ($660M of STRK $25.9B of equity issued principal amount is on balance shee
Slide 8: Robust Access to Capital Markets
Robust Access to Capital Markets Raised $10B YTD 2025 through four different securities (in $ billion) Equity Fixed Income FY 2024 $16.3 $6.2 $22.6 YTD 2025 $6.6 $3.4 $10.0 $2.0 $0.7 $0.7 Convertible STRF STRK Notes Note: As of 8-K filed on April 28, 2025. Copyright © 2025 Strategy. All Rights Reser
Slide 9: Strategy's Bitcoin Holdings vs. Biggest Corporate Treasuries
Strategy’s Bitcoin Holdings vs. Biggest Corporate Treasuries Berkshire Hathaway $410B Amazon $157B Google $148B Microsoft $132B Apple $131B Ford $105B Meta $95B General Motors $89B Exxon $67B Cash & Cash Equivalents NVIDIA $66B Bitcoin Holdings KKR & Co $65B PayPal $56B Strategy $52B #13 CVS $48B No
Slide 10: Bitcoin Holdings of Publicly Listed Companies
Bitcoin Holdings of Publicly Listed Companies 70+ 720,728 $68.5B Publicly Listed Bitcoins Acquired Value as of 4/28 Companies Globally New Entrants USA USA Notable Existing Bitcoin Treasury USA Japan USA Companies India France USA Source: https://treasuries.bitbo.io/ Copyright © 2025 Strategy. All R
Slide 11: MSTR has outperformed all major assets and S&P 500 stocks
MSTR has outperformed all major assets and S&P 500 stocks 2887% Key Assets and Indices Big Tech Stocks 874% 692% 202% 65% 62% 58% 130% 117% 109% 88% 86% 18% 19% -19% (1) Asset performance since August 10, 2020, when Strategy adopted its bitcoin strategy. Source: FactSet as of April 28, 2025. (1) Bon
Slide 12: MSTR has outperformed over the last 12 months
MSTR has outperformed over the last 12 months 188% 70% 49% 48% 24% 24% 24% 10% 9% 8% 4% 4% -4% -6% MSTR TSLA BTC IBIT AAPL META NVDA QQQ VNQ SPY AMZN BND MSFT GOOG Source: FactSet as of April 28, 2025. Note: Past performance is not indicative of future results. Copyright © 2025 Strategy. All Rights
Slide 13: MSTR has outperformed over the last 3 months
MSTR has outperformed over the last 3 months 10% 1% -4% -6% -6% -9% -9% -12% -13% -16% -18% -18% -21% -28% MSTR BND VNQ BTC IBIT SPY QQQ AAPL MSFT NVDA GOOG META AMZN TSLA Source: FactSet as of April 28, 2025. Note: Past performance is not indicative of future results. Copyright © 2025 Strategy. All
Slide 14: MSTR Performance Metrics
MSTR Performance Metrics (1) Annualized Return (2) Options Market BSE Return (2) 105% 5.1x 2887% #1 vs top S&P 500 IBIT, #1 vs Crypto Complex #1 vs top S&P 500 Historic Volatility (30D)(3) Options Open Interest (4) Options Open Interest as % of Market Cap 110% $75.0 B 82% #1 vs top S&P 500 #5 vs top
Slide 15: Capital Plan
Capital Plan Copyright © 2025 Strategy. All Rights Reserved.
Slide 16: 21/21 Capital Raising Plan – 65% Complete
21/21 Capital Raising Plan – 65% Complete Capital raised & remaining available ($ billion) under 21/21 Plan Remaining 99% $0.1 Equity Issued Equity $20.9 $21B 30% $42B Remaining Fixed Converts, $14.6 $21B Income $5.0 STRK, $0.7 STRF, $0.7 • Our capital markets activities outpaced our original plan a
Slide 17: What's the answer to: The Ultimate Question
What’s the answer to: The Ultimate Question of Life, The Universe, and Everything… According to The Hitchhiker's Guide to the Galaxy by Douglas Adams Copyright © 2025 Strategy. All Rights Reserved. 17 17
Slide 18: Copyright © 2025 Strategy. All Rights Reserved.
Copyright © 2025 Strategy. All Rights Reserved. 18 18
Slide 19: Capital Raising Target
Capital Raising Target Through end of 2027 Billion Billion Equity Fixed Income Copyright © 2025 Strategy. All Rights Reserved. 19 19
Slide 20: New $21 Billion ATM Common Stock Offering
New $21 Billion ATM Common Stock Offering Filed on May 1, 2025 Copyright © 2025 Strategy. All Rights Reserved. 20
Slide 21: 42/42 Capital Raising Plan – 32% Complete
42/42 Capital Raising Plan – 32% Complete Capital raised & remaining available ($ billion) under 42/42 Plan 50% $21B ATM MSTR Equity issued Remaining Equity $20.9 $21.1 $42B 15% $84B $21B ATM STRK Fixed Converts, Remaining Income $5.0 $35.6 $42B STRK, STRF, $0.7 $0.7 • We have $21.1B equity and $35.
Slide 22: Equity ATM Uses
Equity ATM Uses Cover Fixed Annual Obligations and Opportunistically Purchase Bitcoin Notional Coupon or Annual BTC Avg Daily Traded MSTR Avg Daily Traded Value Dividend % Obligation Volume Last 30 Days Volume Last 30 Days Converts $8,214M 0.421% $35M STRF $850M 10.000% $85M $33.4B $5.8B STRK $818M
Slide 23: YTD Performance vs. 2025 Targets (BTC KPIs)
YTD Performance vs. 2025 Targets (BTC KPIs) Reflects the incremental value generated through Strategy treasury operations ₿TC Yield % (1) ₿TC $ Gain ($ billion) (1) Annual Target Minimum 15% Annual Target $10 Billion BTC Gain 61,497 BTC Price $94,690 $10.0 15.0% 13.7% $5.8 Target 2025 YTD 2025 Targe
Slide 24: 2025 Revised Targets
2025 Revised Targets ₿TC Yield % (1) ₿TC $ Gain ($ billion) (1) New Target Minimum 25% New Target $15 Billion 25.0% $15.0 $10.0 15.0% Target 2025 Target 2025 Target 2025 Target 2025 (Original) (Revised) (Original) (Revised) (1) Presented for illustrative purposes only. BTC Yield is not equivalent to
Slide 25: Financial Results
Financial Results Andrew Kang, Executive VP & Chief Financial Officer Copyright © 2025 Strategy. All Rights Reserved.
Slide 26: Software Highlights
Software Highlights Q1 2025 ($ in Millions) Total Revenues Subscription Services Revenues Non-GAAP Subscription Billings(1) $111.1M Q1 2025 +62% YOY increase Q1 2025 +38% YOY increase Q1 2025 Total Revenues 3.6% YoY decrease $37.1 $64.8 $31.9 $27.8 13% 7% $24.1 $23.0 $33.4 $32.4 33% $24.5 47% $17.7
Slide 27: FASB Fair Value Accounting – Q1 2025
FASB Fair Value Accounting – Q1 2025 • Adopted fair value accounting on January 1, 2025. Carrying value is now equal to the market value at the end of each quarter, instead of the cost-less-impairment value under the previous accounting standard. • Recorded unrealized fair market value loss of $5.9B
Slide 28: FASB Fair Value Accounting – Illustrative Q2 2025
FASB Fair Value Accounting – Illustrative Q2 2025 • Adopted fair value accounting on January 1, 2025. Carrying value is now equal to the market value at the end of each quarter, instead of the cost-less-impairment value under the previous accounting standard. • Illustrative unrealized fair market va
Slide 29: STRK Performance
STRK Performance High Performing and Highly Liquid Convertible Preferred Stock Price Performance(1) of STRK vs. All Preferred Average Trading Volume(2) of STRK vs. All Preferred Offerings since 2015 Offerings Since 2015 8.4% $33M -3.4% $0.4M STRK Median (All Prefs) STRK Median (All Prefs) Source: Bl
Slide 30: STRF Performance
STRF Performance High Performing and Highly Liquid Preferred Stock Price Performance(1) of STRF vs. All Preferred Average Trading Volume(2) of STRF vs. All Preferred Offerings since 2015 Offerings Since 2015 7.5% $26M -2.7% $0.4M STRF Median (All Prefs) STRF Median (All Prefs) Source: Bloomberg as o
Slide 31: STRK/STRF = Permanent Leverage without Refinancing Risk
STRK/STRF = Permanent Leverage without Refinancing Risk $100M Permanent capital with no maturity STRK/STRF No refinancing risk Perpetual Preferred No restrictive covenants $8-10M fixed dividend per annum in perpetuity Stock No collateral ……. ……. Publicly listed with greater access Ability to raise f
Slide 32: Strong Capital Structure
Strong Capital Structure • Issued $2B convertible senior notes due 2030 and issued $4.4B shares of class A common stock under ATM in Q1 2025 • Called the $1.05B convertible senior notes due 2027, electing to settle conversions in common stock • Issued STRK convertible perpetual preferred in January
Slide 33: MSTR Convertible Bonds Performance Since Issuance
MSTR Convertible Bonds Performance Since Issuance 224% 150% 134% 103% 95% 68% 62% 48% 9% 7% 4% - 10% 1% 2025 2027 2028 2029 2030 2030 2031 2032 Blended Bitcoin US HY US US IG Convert Convert Convert Convert Convert Convert Convert Convert Convert Corp Converts Corp (0.625%) (0.000%) Source: FactSet,
Slide 34: Strategy Capital Structure
Strategy Capital Structure Strategy’s debt and preferred securities are significantly supported by the value of the Company’s bitcoin reserves and have a substantial equity capital $109B Common Equity Capital BTC Equity STRK Preferred Stock BTC Debt STRF Preferred Stock Converts $52B $100B $43B $0.8
Slide 35: Seniority & Volatility of our BTC-Backed Securities
Seniority & Volatility of our BTC-Backed Securities High Converts Convertible Notes with capped upside STRF 10% fixed dividend, Seniority non-callable preferred STRK 8% fixed dividend, convertible preferred MSTR Leveraged Bitcoin Exposure Low Volatility High Note: Information presented on this slide
Slide 36: BTC Equity Analysis
BTC Equity Analysis Michael Saylor, Executive Chairman Copyright © 2025 Strategy. All Rights Reserved.
Slide 37: MSTR is the World's Most Widely Held Bitcoin Proxy
MSTR is the World’s Most Widely Held Bitcoin Proxy Estimated number of holders and beneficiaries of MSTR common shares as of Q1 2025 ~13,000 ~814,000 500+ Institutions Retail Accounts ETF Funds • Asset Managers: Vanguard, BlackRock, Fidelity • Brokerages • Nasdaq 100 • Pension Funds: CalPERS, CalSTR
Slide 38: BTC Financial Framework
BTC Financial Framework BTC KPIs • BTC Yield is the % change in BTC per share. • BTC Gain is BTC acquired without share dilution. • BTC $ Gain is USD value of BTC acquired without share dilution. BTC Valuation • BTC $ Income is the change in value of the BTC $ Gain less dividend / interest costs. •
Slide 39: BTC Metrics for Forecasting, Treasury, & Risk
BTC Metrics for Forecasting, Treasury, & Risk BTC Forecast • BTC ARR is the assumed annualized rate of return of BTC in %. • BTC Volatility is the assumed standard deviation of daily return of BTC. • BTC Price is the market price of BTC at any given time. BTC Treasury • BTC Premium is the embedded p
Slide 40: BTC ARR Assumptions across Different Investor Types
BTC ARR Assumptions across Different Investor Types BTC ARR % BTC ARR % Skeptic 0% Maximalist 30% Trader 10% Double Maxi 40% Investor 20% Triple Maxi 50% Copyright © 2025 Strategy. All Rights Reserved. 40 40
Slide 41: Quantifying the Value of our Volatility (MSTR Rate)
Quantifying the Value of our Volatility (“MSTR Rate”) MSTR Rate is simple annualized yield by selling “At-The-Market” call options with 30 days-to-expiry 103% 68% 65% 40% MSTR NVDA IBIT QQQ Source: BarChart as of April 25, 2025. Copyright © 2025 Strategy. All Rights Reserved. 41 41
Slide 42: BTC KPIs Illustration for $100M issuance of different securities
BTC KPIs Illustration for $100M issuance of different securities Assuming 2x mNAV MSTR Convertible STRK STRF (Equity ATM) Notes BTC Yield 0.09% 0.12% 0.15% 0.19% BTC KPIs BTC Gain 526 676 842 1,053 BTC $ Gain $50 $64 $80 $100 All four securities are accretive and generate positive BTC $ Gain. BTC $
Slide 43: BTC Torque of 6.9x on $100M of MSTR Equity
$50M BTC $ Gain BTC Torque of 6.9x on $100M of MSTR Equity $639M BTC $ Income $689M BTC $ Value BTC $ Equity ($M) BTC $ Gain ($M) BTC $ Income ($M) $1,379 $1,060 $639 +30% BTC ARR $816 $480 (“Maximalist”) $100M capital raised $627 $358 $50 2.0x $100M BTC purchased $483 $50 BTC $263 $50M BTC $ Gain $
Slide 44: BTC Torque of 8.9x on $100M of Converts
$64M BTC $ Gain BTC Torque of 8.9x on $100M of Converts $821M BTC $ Income $886M BTC $ Value BTC $ Equity ($M) BTC $ Gain ($M) BTC $ Income ($M) $1,379 $1,060 $821 +30% BTC ARR $816 (“Maximalist”) $617 $100M capital raised(1) -0% coupon $627 2.8x $460 BTC $100M BTC purchased $483 $64 $64M BTC $ Gain
Slide 45: BTC Torque of 10.4x on $100M of STRK
$80M BTC $ Gain BTC Torque of 10.4x on $100M of STRK $959M BTC $ Income $1,038M BTC $ Value BTC $ Equity ($M) BTC $ Gain ($M) BTC $ Income ($M) $1,379 $1,060 +30% BTC ARR $959 $816 (“Maximalist”) $100M capital raised(1) -8% fixed dividend $627 $710 4.1x $100M BTC purchased $483 $521 BTC $80M BTC $ G
Slide 46: BTC Torque of 12.8x on $100M of STRF
$100M BTC $ Gain BTC Torque of 12.8x on $100M of STRF $1,179M BTC $ Income $1,279M BTC $ Value BTC $ Equity ($M) BTC $ Gain ($M) BTC $ Income ($M) $1,379 $1,060 +30% BTC ARR $816 (“Maximalist”) $1,179 $100M capital raised(1) -10% fixed dividend $627 $870 13.8x $100M BTC purchased $483 BTC $636 $100M
Slide 47: BTC KPIs Illustration for $100M issuance of different securities
BTC KPIs Illustration for $100M issuance of different securities Assuming 2x mNAV, 30% BTC ARR (“Maximalist”), and 10 years duration MSTR Convertible STRK STRF (Equity ATM) Notes BTC Yield 0.09% 0.12% 0.15% 0.19% BTC KPIs BTC Gain 526 676 842 1,053 BTC $ Gain $50 $64 $80 $100 $639 $821 $959 $1,179 B
Slide 48: BTC Torque Comparison for 1x mNAV
BTC Torque Comparison for 1x mNAV BTC Torque is BTC $ Value/BTC $ Capital. BTC $ Value is BTC $ Gain + BTC $ Income. Assuming 1x mNAV and 10 years duration MSTR Convertible BTC ARR % STRK STRF (Equity ATM) Notes Skeptic: 0% 0.0x 0.0x -0.2x 0.0x Trader: 10% 0.0x 0.7x 1.1x 1.6x Investor: 20% 0.0x 1.8x
Slide 49: BTC Torque Comparison for 2x mNAV
BTC Torque Comparison for 2x mNAV BTC Torque is BTC $ Value/BTC $ Capital. BTC $ Value is BTC $ Gain + BTC $ Income. Assuming 2x mNAV and 10 years duration MSTR Convertible BTC ARR % STRK STRF (Equity ATM) Notes Skeptic: 0% 0.5x 0.4x 0.0x 0.0x Trader: 10% 1.3x 1.7x 1.4x 1.6x Investor: 20% 3.1x 4.0x
Slide 50: BTC Torque Comparison for 3x mNAV
BTC Torque Comparison for 3x mNAV BTC Torque is BTC $ Value/BTC $ Capital. BTC $ Value is BTC $ Gain + BTC $ Income. Assuming 3x mNAV and 10 years duration MSTR Convertible BTC ARR % STRK STRF (Equity ATM) Notes Skeptic: 0% 0.7x 0.5x 0.1x 0.0x Trader: 10% 1.7x 2.0x 1.6x 1.6x Investor: 20% 4.1x 4.7x
Slide 51: BTC Multiple Comparison for 1x mNAV
BTC Multiple Comparison for 1x mNAV BTC Multiple is BTC $ NAV/BTC $ Equity. Assuming 1x mNAV and 10 years duration MSTR Convertible BTC ARR % STRK STRF (Equity ATM) Notes Skeptic: 0% 1.0x 1.0x 0.8x 1.0x Trader: 10% 1.0x 1.4x 1.7x 2.6x Investor: 20% 1.0x 1.4x 2.1x 6.2x Maximalist: 30% 1.0x 1.4x 2.3x
Slide 52: BTC Multiple Comparison for 2x mNAV
BTC Multiple Comparison for 2x mNAV BTC Multiple is BTC $ NAV/BTC $ Equity. Assuming 2x mNAV and 10 years duration MSTR Convertible BTC ARR % STRK STRF (Equity ATM) Notes Skeptic: 0% 2.0x 1.6x 1.0x 1.0x Trader: 10% 2.0x 2.8x 2.2x 2.6x Investor: 20% 2.0x 2.8x 3.3x 6.2x Maximalist: 30% 2.0x 2.8x 4.1x
Slide 53: BTC Multiple Comparison for 3x mNAV
BTC Multiple Comparison for 3x mNAV BTC Multiple is BTC $ NAV/BTC $ Equity. Assuming 3x mNAV and 10 years duration MSTR Convertible BTC ARR % STRK STRF (Equity ATM) Notes Skeptic: 0% 3.0x 1.9x 1.1x 1.0x Trader: 10% 3.0x 4.2x 2.5x 2.6x Investor: 20% 3.0x 4.2x 4.1x 6.2x Maximalist: 30% 3.0x 4.2x 5.4x
Slide 54: BTC Yield Curve at different mNAVs
BTC Yield Curve at different mNAVs 0.19% 0.17% 0.16% 0.17% 0.15% 0.16% 0.16% 0.15% 0.14% 0.14% 0.13% 0.11% mNav 0.12% 5x 4x 0.09% 3x 2x 1x 0.05% 0.00% MSTR Converts STRK STRF Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights Reserved. 54
Slide 55: BTC Spread Curve at different mNAVs
BTC Spread Curve at different mNAVs BTC Spread is the % of BTC Capital raised that results in BTC Gain 100% 92% 86% 90% 80% 87% 82% 80% 75% 76% mNav 67% 60% 64% 5x 4x 50% 3x 2x 1x 29% 0% MSTR Converts STRK STRF Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights Res
Slide 56: BTC Hurdle Rate
BTC Hurdle Rate The BTC ARR % required to generate positive BTC $ Income over 10 years 7.2% 6.1% 2.0% 0.0% MSTR Equity Converts STRK STRF Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights Reserved. 56
Slide 57: BTC Breakeven Price & BTC Breakeven Rate
BTC Breakeven Price & BTC Breakeven Rate BTC Breakeven Price is the BTC Price required to generate positive BTC $ Value over 10 years. BTC Breakeven Rate is the BTC ARR % required to generate positive BTC $ Value over 10 years. Assuming current BTC Price of $95,000 MSTR Convertible STRK STRF (Equity
Slide 58: BTC Breakeven Price for MSTR Equity
BTC Breakeven Price for MSTR Equity The BTC Price required to generate positive BTC $ Value over 10 years. $85,000 $85,000 mNav 1x $42,547 2x 3x 4x $28,376 5x $21,285 $17,030 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights Reser
Slide 59: BTC Breakeven Price for Convertible Notes
BTC Breakeven Price for Convertible Notes The BTC Price required to generate positive BTC $ Value over 10 years. $85,000 $85,000 $63,092 $55,994 mNav $52,493 $50,410 1x 2x 3x 4x 5x Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights
Slide 60: BTC Breakeven Price for STRK
BTC Breakeven Price for STRK The BTC Price required to generate positive BTC $ Value over 10 years. $102,045 $85,000 $85,000 $79,355 $76,517 mNav $74,814 1x 2x 3x 4x 5x Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights Reserved. 6
Slide 61: BTC Breakeven Price for STRF
BTC Breakeven Price for STRF The BTC Price required to generate positive BTC $ Value over 10 years. $85,000 $85,000 mNav 1x 2x 3x 4x 5x Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Note: Presented for illustrative purposes only. Copyright © 2025 Strategy. All Rights Reserved. 61
Slide 62: Why does MSTR trade at a multiple to BTC NAV?
Why does MSTR trade at a multiple to BTC NAV? • MSTR has a compliance advantage over BTC and BTC ETFs for many investors. • MSTR has a credit advantage over BTC and BTC ETFs with many lenders. • MSTR has higher volatility than BTC, resulting in a larger, deeper, and richer options market. • MSTR opt
Slide 63: Our Strategy to Maximize Shareholder Value
Our Strategy to Maximize Shareholder Value • Continuously adjust the rate and mix of BTC treasury operations based on market conditions and the shape of the BTC Yield curve. • Balance near-term capture of BTC Yield/Gain with long-term BTC Value creation. • Support mNAV and seek to drive it up over t
Slide 64: BTC Credit Analysis
BTC Credit Analysis Copyright © 2025 Strategy. All Rights Reserved.
Slide 65: BTC Metrics for BTC Credit Analysis
BTC Metrics for BTC Credit Analysis BTC Credit • BTC Rating is BTC NAV divided by the notional value of the liability and all shorter-term / senior liabilities. • BTC Risk is the probability of a liability being undercollateralized by BTC. • BTC Credit is the credit spread necessary to offset the BT
Slide 66: Using BTC Risk for Credit Analysis
Using BTC Risk for Credit Analysis Skeptic (0% BTC ARR) A statistical lens to assess BTC backed fixed income using put option implied probabilities Probability of being undercollateralized during a one-year horizon(1) Volatility BTC Rating LTV 30% 40% 50% 60% 70% 2x 50.0% 1.54% 6.27% 12.79% 19.62% 2
Slide 67: Using BTC Risk for Credit Analysis
Using BTC Risk for Credit Analysis Skeptic (0% BTC ARR) A statistical lens to assess BTC backed fixed income using put option implied probabilities Probability of BTC Rating dropping from a given amount to 1x, at the end of the duration (1) Time 1 Year 5 Years 10 Years BTC Rating LTV Vol 40% 50% 60%
Slide 68: Strategy Liabilities and Capital Structure
Strategy Liabilities and Capital Structure Assuming $95,000 BTC Price, 50% BTC Volatility, and 0% BTC ARR (“Skeptic”) Cum. Market Notional Duration BTC BTC BTC Spread Notional Credit ($M) (Yrs)(1) Rating Risk(2) Credit(3) (4) Premium ($M) Spread Debt: Convertible 2028 $1,010 $1,010 2.4 52.1x 0% 0 bp
Slide 69: Strategy Liabilities and Capital Structure
Strategy Liabilities and Capital Structure Assuming $94,000 BTC Price, 50% BTC Volatility, and 30% BTC ARR (“Maximalist”) Cum. Market Notional Duration BTC BTC BTC Spread Notional Credit ($M) (Yrs)(1) Rating Risk(2) Credit(3) (4) Premium ($M) Spread Debt: Convertible 2028 $1,010 $1,010 2.4 52.1x 0%
Slide 70: BTC Credit Values across Various BTC ARRs
Min. BTC ARR BTC Credit Values across Various BTC ARRs for BTC Credit <100 bps (i.e., inv. grade) Assuming $95,000 BTC Price and 50% BTC Volatility Mkt. Credit BTC Credit Skeptic Trader Investor Maximalist Spread Hurdle BTC ARR -> 0% 10% 20% 30% Debt: Convertible 2028 0 bps 0 bps 0 bps 0 bps 500 bps
Slide 71: BTC Credit Comparison across BTC ARRs
BTC Credit Comparison across BTC ARRs Assuming $95,000 BTC Price and 50% BTC Volatility Convertible 2028 Convertible 2029 Convertible 2030 (0.625%) Convertible 2030 (0.000%) Convertible 2031 Convertible 2032 STRF STRK 600 bps 500 bps 400 bps Junk grade threshold (>380 bps) 300 bps 200 bps Investment
Slide 72: BTC Credit Comparison across BTC Volatilities
BTC Credit Comparison across BTC Volatilities Assuming $95,000 BTC Price and 30% BTC ARR (“Maximalist”) Convertible 2028 Convertible 2029 Convertible 2030 (0.625%) Convertible 2030 (0.000%) Convertible 2031 Convertible 2032 STRF STRK 400 bps Junk grade threshold (>380 bps) 350 bps 300 bps 250 bps 20
Slide 73: BTC Credit Comparison across BTC Volatilities
BTC Credit Comparison across BTC Volatilities Assuming $95,000 BTC Price and 0% BTC ARR (“Skeptic”) Convertible 2028 Convertible 2029 Convertible 2030 (0.625%) Convertible 2030 (0.000%) Convertible 2031 Convertible 2032 STRF STRK 1400 bps 1200 bps 1000 bps 800 bps 600 bps 400 bps Junk grade threshol
Slide 74: Credit Spread of Traditional Bonds
Credit Spread of Traditional Bonds Current Market Credit Spreads for Associated Credit Ratings (bps)(1) 550+ 275 – 500 175 – 300 100 – 200 50 – 100 75 – 125 30 – 75 AAA AA A BBB BB B CCC and lower Source: Federal Reserve Bank of St. Louis (FRED). (1) Represents the approximate historical range of op
Slide 75: Over-Collateralization and Credit Spreads of Traditional Bonds
Over-Collateralization and Credit Spreads of Traditional Bonds Over-Collateralization = Ratio of Tangible Liquid Assets to Total Liabilities MSTR Fixed Income Securities Traditional Corporate Bonds Over- BTC Credit Market Credit Market-implied Security Credit Rating Collateralization 30% BTC ARR, 50
Slide 76: Illustrative Convertible Risk–Return Matrix
Illustrative Convertible Risk–Return Matrix 2028 100% Bubble size represents market value 2030 A 2031 80% 2029 Upside Participation(1) 2032 60% 2030 B 40% (2) STRK 20% 0% -20% 0% 20% 40% 60% 80% 100% Downside Protection Information presented on this slide is provided for illustrative purposes only.
Slide 77: Key Takeaways – Fixed Income
Key Takeaways – Fixed Income • Credit markets are grounded in traditional financial practices and metrics. They have not yet embraced BTC as collateral or adopted real-time BTC risk management practices. • Most MSTR convert investors are arbitrageurs, not Bitcoin, equity, or bond investors. • The OT
Slide 78: Call to Action
Call to Action • Investors should contact Moody’s, S&P, & Fitch, and other credit rating agencies to request that they begin to cover and rate MSTR credit instruments. Everyone would benefit from BTC-backed credit ratings. • Equity investors should consider MSTR Converts and STRK, as these are under
Slide 79: Our BTC Principles
Our BTC Principles 5 Acquire BTC continually while achieving positive BTC Yield. 1 Buy and Hold BTC indefinitely, exclusively, securely. 6 Grow rapidly & responsibly subject to market dynamics. 2 Prioritize MSTR common stock long-term value creation. 7 Issue innovative fixed income securities backed
Slide 80: Appendix
Appendix Copyright © 2025 Strategy. All Rights Reserved.
Slide 81: Basic and Assumed Diluted Shares Outstanding Calculation
Basic and Assumed Diluted Shares Outstanding Calculation 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 3/31/2025 4/27/2025 Total Bitcoin Holdings 70,470 124,391 132,500 189,150 447,470 528,185 553,555 Shares Outstanding (in '000s) (1) Class A 76,230 93,220 95,850 149,041 226,138 246,537 253
Slide 82: Non-GAAP Reconciliations ($ in Millions)
Non-GAAP Reconciliations ($ in Millions) Q1 2025 Reconciliation of GAAP to non-GAAP income (loss) from operations Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Revenues $121.9 $120.4 $129.5 $124.5 $115.2 $111.4 $116.1 $120.7 $111.1 Cost of Revenues $27.9 $27.1 $26.7 $28.2 $30.0 $30.9 $34.3 $
Slide 83: Non-GAAP Reconciliations ($ in Millions)
Non-GAAP Reconciliations ($ in Millions) Q1 2025 Reconciliation of non-GAAP operating expenses Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 GAAP Operating Expenses $114.3 $120.0 $128.0 $139.0 $288.9 $280.8 $514.3 $1,102.9 $92.5 Share-Based Compensation (1) $16.5 $14.4 $15.6 $18.5 $16.4 $18.
Slide 84: Non-GAAP Reconciliations ($ in Millions)
Non-GAAP Reconciliations ($ in Millions) Q1 2025 Reconciliation of total non-GAAP expenses Q1 24 Q1 25 GAAP Expenses Cost of Revenues $30.0 $34.0 Sales & Marketing $33.5 $27.5 Research & Development $29.2 $24.4 General & Administrative $34.7 $40.5 Digital Asset Impairment Losses, Net of Gains on Sal
Slide 85: BTC Key Performance Indicators (KPIs) Calculation
BTC Key Performance Indicators (KPIs) Calculation • BTC Yield is the % change, during a period, of the ratio between Bitcoin Holdings and Assumed Diluted Shares Outstanding. • BTC Gain is the number of bitcoins held by the Company at the beginning of a period multiplied by the BTC Yield for such per
Slide 86: Important Information about KPIs used in this Presentation
Important Information about KPIs used in this Presentation BTC Yield is a key performance indicator (“KPI”) that represents the percentage change, during a period, of the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding, where: • “Assumed Diluted Shares Outstan
Slide 87: Important Information about KPIs used in this Presentation (Cont'd)
Important Information about KPIs used in this Presentation (Cont’d) When the Company uses these KPIs, management takes into account the various limitations of these metrics, including that they: • do not take into account debt, preferred stock and other liabilities and claims on company assets that
Slide 88: Important Information about KPIs used in this Presentation (Cont'd)
Important Information about KPIs used in this Presentation (Cont’d) The use of the proceeds from such offerings to purchase bitcoin has the effect of increasing the BTC Yield, BTC Gain and BTC $ Gain, while also increasing the Company’s indebtedness and senior claims of holders of instruments other
Slide 89: Important Information about other Terms used in this Presentation
Important Information about other Terms used in this Presentation The following terms used in this presentation provide a conceptual framework for how management views its securities and capital financing decisions in the context of the Company’s bitcoin strategy. These terms are presented for illus
Slide 90: Important Information about other Terms used in this Presentation
Important Information about other Terms used in this Presentation BTC Risk is the annual probability of a liability with a given BTC Rating having a BTC Rating less than 1. This probability is based on a put option-implied probability using a Black-Scholes model to estimate the probability of an ass
Slide 91: Important Information about other Terms used in this Presentation
Important Information about other Terms used in this Presentation BTC Treasury BTC Premium is the embedded premium in market capitalization relative to BTC NAV. BTC Capital is the proceeds used from capital raised for the purpose of acquiring bitcoin. BTC Spread is the BTC Gain with respect to a giv
Slide 92: Additional Information
Additional Information Strategy is not an exchange traded product (“ETP”) or an exchange-traded fund (“ETF”) registered under the Investment Company Act of 1940, as amended, is not subject to the same rules and regulations as an ETP or an ETF, and does not operate as an ETP or ETF. In particular, un