Strategy Inc · NASDAQ:MSTR

Strategy — MICROSTRATEGY — IPO Roadshow (July 2025)

49 slides from Strategy's IPO roadshow presentation, Jul 21, 2025

  1. Slide 1: Investor Presentation STRC ("Stretch") July 2025

    Investor Presentation STRC (“Stretch”) July 2025 Copyright © 2025 Strategy. All Rights Reserved.

  2. Slide 2: Strategy Perpetual Preferred Offering Disclaimer

    Strategy Perpetual Preferred Offering Disclaimer This presentation is neither an offer to sell nor a solicitation of an offer to buy any securities of the MicroStrategy Incorporated d/b/a Strategy (“Strategy”, the “Company”, “we”, “us” or “our”), and shall not constitute an offer, solicitation, or s

  3. Slide 3: STRC Term Sheet

    STRC Term Sheet Copyright © 2025 Strategy. All Rights Reserved.

  4. Slide 4: STRC ("Stretch") Summary of Terms

    STRC (“Stretch”) Summary of Terms Issuer • Strategy Security • Perpetual Stretch Preferred Stock (STRC) Ranking • Senior to STRD, STRK, and MSTR common stock, junior to debt (including convertible notes) and STRF Stated Amount • $100 per share of STRC Liquidation Preference • Adjusted periodically t

  5. Slide 5: Performance Review

    Performance Review Phong Le, President & Chief Executive Officer Copyright © 2025 Strategy. All

  6. Slide 6: Annualized Asset Performance Chart since Aug 10, 2020

    Rights Reserved. Annualized Asset Performance Chart since Aug 10, 2020 3324% 876% 326% 87% 65% 32% -19% 104% Total performance 59% 27% 14% 11% 6% -4% MSTR Bitcoin Magnificent 7 S&P 500 Gold Real Estate (1) Bonds (2) Source: FactSet as of July 18, 2025. Note: Past performance is not indicative of fut

  7. Slide 7: Asset Performance Chart for Last Months

    Asset Performance Chart for Last 12 Months 172% 85% 36% 23% 14% 4% -1% (1) (2) MSTR Bitcoin Gold Magnificent 7 S&P 500 Real Estate Bonds Source: FactSet as of July 18, 2025. Note: Past performance is not indicative of future results. 896883-001 (1) (2) Real Bonds Estate refers 21Jul25 refers to PIMC

  8. Slide 8: $21 Billion of Digital Assets Value Added in Q2 2025

    $21 Billion of Digital Assets Value Added in Q2 2025 ($ in Billions) $6.8 $0.7 $64.4 $13.4 Unrealized FMV gain $43.5 = ~$14B 3/31/2025 BTC BTC Price BTC Purchased BTC Price 6/30/2025 Holdings Change (Q2/25 Purchases) Change BTC Holdings Market Value (Holdings as of Q1/25) (Q2/25 Purchases) Market Va

  9. Slide 9: $7 Billion of Digital Assets Value Added in QTD Q3 2025

    $7 Billion of Digital Assets Value Added in QTD Q3 2025 ($ in Billions) $5.7 $1.2 $0.0 $71.3 $64.4 Unrealized FMV gain = ~$6B 6/30/2025 BTC BTC Price BTC Purchased BTC Price 7/18/2025 Holdings Change (QTD Q3/25 Change BTC Holdings Market Value (Holdings as of Q2/25) Purchases) (QTD Q3/25 Purchases)

  10. Slide 10: 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 Strategy $71B #9 Cash & Cash Equivalents Exxon Bitcoin Holdings $67B NVIDIA $66B PayPal $56B CVS $48B Note: As of July

  11. Slide 11: 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 25% Annual Target Minimum $15 Billion 25.0% $15.0 BTC Gain 93,090 BTC Price $117,250 20.8% $10.9 Target 2025 YTD

  12. Slide 12: Strong Performance for STRK, STRF, & STRD since Launch

    Strong Performance for STRK, STRF, & STRD since Launch $119.1 STRF +40% +219M ATM Sales $118.2 STRK +48% +$549M ATM Sales $2.00 div/share $2.64 div/share $85.0 launch $93.2 STRD +10% $1.24 + $18M ATM Sales div/share $85.0 launch $80.0 launch 1/30/25 2/28/25 3/31/25 4/30/25 5/31/25 6/30/25 7/18/25 Pa

  13. Slide 13: Our Preferreds have Outperformed since their IPOs

    Our Preferreds have Outperformed since their IPOs Since Jan 31, 2025 48% Since Mar 21, 2025 40% Since Jun 6, 2025 10% 3% 0% -2% STRK PFF(1) STRF PFF (1) STRD PFF (1) ARR%: 104% 123% 87% Source: Yahoo Finance. Market data as of 7/18/2025. Past performance is not indicative of future results. ARR repr

  14. Slide 14: Lower Effective Yields Increase the BTC Torque via ATMs

    Lower Effective Yields Increase the BTC Torque via ATMs 12% 11% STRD 10.7% 10% 9% STRF 8.4% 8% 7% STRK 6.8% 6% 1/31/25 2/28/25 3/31/25 4/30/25 5/31/25 6/30/25 7/18/25 Past 896883 performance -001 is21Jul25 not indicative 00:32 of future Page 15 results . Market data as of July 18, 2025. 14

  15. Slide 15: $786M Raised Cumulatively through Preferred Equity ATMs

    $786M Raised Cumulatively through Preferred Equity ATMs STRK STRF STRD $141M $112M $78M $78M $75M $60M $59M $52M $37M $25M $26M $19M $11M $8M $1M $4M 3/17 3/24 3/31 4/7 4/14 4/21 4/28 5/5 5/12 5/19 5/26 6/2 6/9 6/16 6/23 6/30 7/7 7/14 7/21 Week before

  16. Slide 16: Stretch ("STRC")

    Stretch (“STRC”) Michael Saylor, Executive Chairman 21Jul25 00:32 Copyright © 2025 Strategy. All Rights Reserved.

  17. Slide 17: STRC is a senior, perpetual, preferred security with variable monthly dividend

    STRC (“Stretch”) is a senior, perpetual, preferred security offering a variable monthly dividend, designed to maintain a stable price. 21Jul25 00:32 17

  18. Slide 18: STRC (Stretch) Preferred Stock

    STRC (Stretch) Preferred Stock Variable monthly cash dividend; designed to promote stable price dynamics Investment Highlights • Monthly variable cash dividend with effective yield of 9.5-10.0% at IPO • Designed to enable price stability near $100 via variable dividend and call option, with planned

  19. Slide 19: Benchmarking STRC: Building out the Yield Curve for BTC Credit

    Benchmarking STRC Building out the Yield Curve for BTC Credit 12% 11% STRD 10% STRC 9% STRF ) (% 8% Junk Bonds STRK Yield 7% 6% Leveraged Loans Preferred Stocks 5% Long-term U.S. 4% Agency MBS Treasury Bonds 3% 2% 0 2 4 6 8 10 12 14 16 Effective Duration (years) Sources: Note: Information Data as of

  20. Slide 20: Illustrative Pricing Framework for STRC

    Illustrative Pricing Framework for STRC Benchmarking Credit Spread to STRF Illustrative STRC initial offering pricing STRC offered at: $90 $95 0.5%-1.0% 1.3% 3.4% Spread 3.4% Spread 9.5% 10.0% 9.0% 8.4% 7.7% 5.0% 4.3% 20Y UST 1M UST Yield Yield STRF Effective Yield Equivalent STRC Yield STRC Dividen

  21. Slide 21: STRC is Designed to be Stable in Price

    STRC is Designed to be Stable in Price STRC is designed to maintain a price at or near ~$100 via a monthly variable dividend Time 4% (%) 3% SOFR Rate SOFR Rate 2% SOFR 1% 0% 12% $250 ) (% 11% ) $200 $ Dividend %( STRF 10% $150 Price Dividend 9% Price 8% $100 9% $120 Dividend % ) (% 8% $110 ) $ ( STR

  22. Slide 22: STRC will Pay a Monthly Cash Dividend

    STRC will Pay a Monthly Cash Dividend Strategy will pay dividends and announce the next month’s STRC Rate on the last day of a month 15th day of the month: Last day of the month 1 Record date – holders as of this date 2 STRC dividends paid will receive a STRC dividend 3 STRC Rate for next month anno

  23. Slide 23: Mechanisms to Execute STRC Credit Strategy

    Mechanisms to Execute STRC Credit Strategy $105 Strategy’s toolkit if STRC price at $101 or above $104 1) Decrease STRC Dividend Rate $103 2) Issue STRC via Secondary Offering(1) at or below $101 3) Call STRC @ $101 $102 $101 $100 Target Range – Adjust STRC Dividend Rate and STRC issuance via ATM $9

  24. Slide 24: Sample of Short-Duration Credit Assets

    Sample of Short-Duration Credit Assets Asset Class Size of Market Effective Yield Money Market Funds(1) ~$7.4 trillion ~4.2% Short-Term Treasury Bills(2) ~$5.8 trillion ~4.3% USD Bank Accounts(3) ~$18.3 trillion ~0.1% – 4.0% Stablecoins(4) ~$250 billion 0.0% Corporate Commercial Paper(5) ~$1.4 trill

  25. Slide 25: Sample of Short-Duration Credit Assets

    Sample of Short-Duration Credit Assets $0.5B 10% Size of bubble = Asset Class Market Size Higher Yield 8% ~$5.8T 6% ~$7.4T Yield ~$18.3T ~$1.4T Effective 4% 2% ~$250B 0% STRC Money Market Short-Term USD Bank Stablecoins Corporate Funds Treasury Bills Accounts Commercial Paper Note: STRC Stock is not

  26. Slide 26: Sample of Short-Duration Credit Assets

    Sample of Short-Duration Credit Assets STRC provides an attractive alternative to short-term yield assets Short Term Treasuries $5.8 trillion ~4.3% Yield USD Bank Accounts Money Market Funds $18.3 trillion $7.4 trillion ~0.1 – 4.0% Yield ~4.2% Yield Stablecoins $250 billion 0% Yield Commercial Paper

  27. Slide 27: Overview of Our Senior Preferred Stocks – STRF & STRC

    Overview of Our Senior Preferred Stocks – STRF & STRC STRF STRC (Illustrative) Notional Value $1,051M $500M Outstanding Listing NASDAQ NASDAQ(1) Dividend Type Fixed Variable Dividend Frequency Quarterly Monthly Dividend Accumulation Cumulative Cumulative Effective Yield 8.4% Initially 9.5-10.0%, the

  28. Slide 28: Seniority & Volatility of our Securities

    Seniority & Volatility of our Securities High 10.00 STRF 9.00 10% quarterly fixed dividend, perpetual preferred 8.00 STRC $2.1 billion ATM Variable rate monthly dividend, 7.00 perpetual preferred Intend to launch future ATM ty 6.00 STRK 8% quarterly fixed dividend, 5.00 convertible preferred Seniori

  29. Slide 29: Strategy Capital Structure

    Strategy Capital Structure Strategy’s debt and preferred securities are supported by the value of the Company’s bitcoin reserves and have a substantial equity cushion Equity $132B Bitcoin Surplus STRD Preferred Stock STRK Preferred Stock STRC Preferred Stock (Pro Forma) STRF Preferred Stock Converts

  30. Slide 30: Strategy Liabilities and Capital Structure Today (Skeptic)

    Strategy Liabilities and Capital Structure Today Assuming $117,250 BTC Price, 40% BTC Volatility, and 0% BTC ARR (“Skeptic”) Cum. Market Notional Duration BTC BTC BTC Spread As of July 18, 2025 Notional Credit ($M) (Yrs)(1) Rating Risk(2) Credit(3) Premium ($M) Spread(4) Debt: Convertible 2028 $1,01

  31. Slide 31: Strategy Liabilities and Capital Structure Today (Maximalist)

    Strategy Liabilities and Capital Structure Today Assuming $117,250 BTC Price, 40% BTC Volatility, and 30% BTC ARR (“Maximalist”) Cum. Market Notional Duration BTC BTC BTC Spread As of July 18, 2025 Notional Credit ($M) (Yrs)(1) Rating Risk(2) Credit(3) Premium ($M) Spread(4) Debt: Convertible 2028 $

  32. Slide 32: Timeline to Convertible Equitization

    Timeline to Convertible Equitization Reflects the remaining notional amount of convertible notes outstanding each year, assuming Strategy equitizes each tranche at the earliest allowable call date and all contractual conditions have been satisfied $8.2B $5.2B $1.4B $0.8B 2025 2026 2027 2028 2029 Not

  33. Slide 33: Strategy Pro-Forma Equitized Capital Structure

    Strategy Pro-Forma Equitized Capital Structure The below assumes the conversion of all in-the-money convertible notes $136B Pro Forma Equity Bitcoin Surplus STRD Preferred Stock STRK Preferred Stock STRC Preferred Stock (Pro Forma) STRF Preferred Stock Pro Forma Converts $71B $127B $1.20B $62B $1.20

  34. Slide 34: Pro-Forma Liabilities and Equitized Capital Structure (Skeptic)

    Strategy Pro-Forma Liabilities and Equitized Capital Structure Assuming $117,250 BTC Price, 40% BTC Volatility, 0% BTC ARR (“Skeptic”), and conversion of all in-the-money convertible notes. Cum. Market Notional Duration BTC BTC BTC Spread As of July 18, 2025 Notional Credit ($M) (Yrs)(1) Rating Risk

  35. Slide 35: Pro-Forma Liabilities and Equitized Capital Structure (Maximalist)

    Strategy Pro-Forma Liabilities and Equitized Capital Structure Assuming $117,250 BTC Price, 40% BTC Volatility, 30% BTC ARR (“Maximalist”), and conversion of all in-the-money convertible notes. Cum. Market Notional Duration BTC BTC BTC Spread As of July 18, 2025 Notional Credit ($M) (Yrs)(1) Rating

  36. Slide 36: Long Term Target BTC Capital Structure (~3 Years)

    Long Term Target BTC Capital Structure (~3 Years) $1B BTC Rating 10x+ STRF “Investment Grade Equivalent”(1) $500M BTC Rating 10x+ STRC $1B BTC Rating 6x+ STRK $1B BTC Rating 3x+ “High Yield Equivalent”(1) STRD $71B Unencumbered BTC Bitcoin $120B Equity MSTR Note: Includes current outstanding amounts

  37. Slide 37: Strategy's BTC Capital Plan and Credit Strategy

    Strategy’s BTC Capital Plan and Credit Strategy 1. Long-term target BTC Ratings(1): • STRF: 10x+ • STRC: 10x+ • STRK: 6x+ • STRD: 3x+ 2. We currently intend to reduce the overall senior convertible debt outstanding over time. We will seek to equitize the existing convertibles over time, simplifying

  38. Slide 38: STRC is Low Volatility, Short Duration, and High Yield Credit

    STRC is Low Volatility, Short Duration, and High Yield Credit MSTR Digital Performance $120B market cap $5B daily liquidity BTC ARR: 59% (5Y) $111B options open int. MSTR ARR: 104% (5Y) WKSI, 35-year track record STRC “Stretch” is Strong Credit Treasury Operations Digital Credit MSTR, STRF, STRC, ST

  39. Slide 39: Appendix

    Appendix Copyright © 2025 Strategy. All Rights Reserved.

  40. Slide 40: Bitcoin Debt Coverage

    Bitcoin Debt Coverage Strategy’s bitcoin holdings at $117,250 per bitcoin provide significant coverage of its indebtedness Bitcoin Debt Coverage ($B) $72 $67 $(5) 0% due March 1, 2030 $72B BTC and 0% due 2029 are = ~14x Coverage the only convertible $5B Out-of-Money notes for which the conversion op

  41. Slide 41: Bitcoin Dividend Coverage

    Bitcoin Dividend Coverage Strategy’s bitcoin holdings at $117,250 per bitcoin provide significant coverage of preferred dividends Bitcoin Dividend Coverage ($B) $72 $67 $(5) 0% due March 1, 2030 ÷ = ~180 years of and 0% due 2029 are the only convertible preferred dividends notes for which the conver

  42. Slide 42: Equity ATM Uses Cover Fixed Annual Obligations and Purchase Bitcoin

    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%(1) $35M STRF $1,051M 10.000% $105M $57.1B $5.4B STRC(

  43. Slide 43: 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

  44. Slide 44: 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

  45. Slide 45: 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

  46. Slide 46: 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

  47. Slide 47: Important Information about other Terms used in this Presentation

    Important Information about other Terms used in this Presentation BTC Credit BTC Rating is the ratio of our Bitcoin NAV and the sum of the notional values of the instruments being rated and all instruments that are senior to and, if any liabilities share an equal claim to our assets, such instrument

  48. Slide 48: Important Information about other Terms used in this Presentation

    Important Information about other Terms used in this Presentation BTC Forecast BTC ARR is an assumed annualized rate of return on bitcoin expressed as a percentage. This metric is presented for illustrative purposes only, and no prediction as to the price of bitcoin is being made. BTC Volatility is

  49. Slide 49: Additional Information

    Additional Information Strategy is not a registered money market fund under the Investment Company Act of 1940, as amended, is not subject to the same protections as a registered money market fund, and does not operate as registered money market fund. Among other things, unlike money market funds, w

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