Slide 1: Q4 2024 Financial Results
Q4 2024 Financial Results February 5, 2025 Copyright © 2025 Strategy. All Rights Reserved.
Slide 2: Safe Harbor Statement
Strategy Q4 2024 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: Business Overview
Business Overview Phong Le, President & Chief Executive Officer Copyright © 2025 Strategy. All Rights Reserved.
Slide 4: MicroStrategy is now Strategy
MicroStrategy is now Strategy TM Copyright © 2025 Strategy. All Rights Reserved. 4
Slide 5: Introducing the New Strategy Merchandise Store
Introducing the New Strategy Merchandise Store store.strategy.com Copyright © 2025 Strategy. All Rights Reserved. 5
Slide 6: Introducing the New Strategy Website
Introducing the New Strategy Website Strategy.com Copyright © 2025 Strategy. All Rights Reserved. 6
Slide 7: Introducing the New Strategy Software Website
Introducing the New Strategy Software Website StrategySoftware.com Copyright © 2025 Strategy. All Rights Reserved. 7
Slide 8: Join us at Strategy World 2025 in Orlando, FL
Join us at Strategy World 2025 in Orlando, FL Copyright © 2025 Strategy. All Rights Reserved. 8
Slide 9: Corporate Highlights
Corporate Highlights Software Cloud Transition Fair Value Accounting Inclusion in Nasdaq 100 Q4 57% YOY increase in Current Adoption of FASB Fair Value Added to index on Dec 23, 2024 Subscription Billings and 48% Accounting starting Q1 2025 YOY increase in Subscription Services Revenues New Board of
Slide 10: Bitcoin Highlights
Bitcoin Highlights Bitcoin Holdings • Acquired 258,320 bitcoin in 2024 for ~$22.1B at average price of $85,447 471,107 • Current market value of bitcoin holdings ~$46B(1) Acquired for a total cost of $30.4 billion, or $64,511 per bitcoin as of February 2, 2025 • Largest corporate holder of bitcoin i
Slide 11: STRK (Strike) Convertible Preferred Stock
STRK (“Strike”) Convertible Preferred Stock MSTR Upside Exposure with Fixed Dividend Description of Strike • Perpetual preferred stock that is convertible into MSTR common stock at a conversion ratio of 10:1 • Provides investors with an embedded perpetual call option on one of the most volatile and
Slide 12: Robust Access to Capital Markets
Robust Access to Capital Markets Raised $21.1B since October 30, 2024 Equity Issued ($B) Fixed Income Issued ($B) $22.6 $18.1 $6.2 $3.0 $15.1 $16.3 $3.0 $3.0 $1.5 $2.1 $0.6 $0.6 $0.8 $1.0 $2.4 $2.4 $1.4 $0.8 $1.1 $0.1 (1) (1) Q1 2024 Q2 2024 Q3 2024 Q4 2024 QTD Q1 2025 2024 YTD 2025 (1) As of Februa
Slide 13: Bitcoin Treasury Company
Bitcoin Treasury Company Strategy’s unique value proposition Bitcoin Treasury Company (1) Fixed Income Equity Cash $8.6B of total debt issued (of which $6.2B aggregate $584M of preferred equity $836M total excess cash $21.7B of equity issued principal amount is issued on balance sheet invested outst
Slide 14: 21/21 Capital Raising Plan Progress
21/21 Capital Raising Plan Progress Capital issued & remaining available ($ billion) under 21/21 Plan 80% Remaining, $21B Equity $16.7 $4.3 17% $42B Fixed Converts, Remaining, $21B Income $3.0 $17.4 Preferred Stock, $0.6 • Our capital markets activities outpaced our original plan as we grew rapidly
Slide 15: Financial Results
Financial Results Andrew Kang, Executive VP & Chief Financial Officer Copyright © 2025 Strategy. All Rights Reserved.
Slide 16: Software Highlights
Software Highlights Q4 2024 ($ in Millions) Total Revenues Subscription Services Revenues Non-GAAP Subscription Billings(1) $120.7M Q4 2024 +48% YOY increase Q4 2024 +57% YOY increase Q4 2024 Total Revenues 3% YoY decrease $31.9 $64.8 $27.8 $463.5M $21.5 $23.0 $24.1 FY 2024 Total Revenues $41.3 7% Y
Slide 17: Growth in Bitcoin Strategic Treasury Reserve
Growth in Bitcoin Strategic Treasury Reserve MSTR has acquired additional bitcoin in every quarter since Q3 2020 Bitcoin Holdings (in ‘000s) 471.1 471,107 bitcoins held on balance sheet, acquired for 447.5 Biggest quarterly bitcoin a total cost of $30.4 billion, or $64,511 per bitcoin(1) addition in
Slide 18: Market Value of Bitcoin Holdings
Market Value of Bitcoin Holdings • Current market value of $46.1 billion with an aggregate cost of $30.4 billion as of February 2, 2025 • Adopted fair value accounting on January 1, 2025 and recognized a cumulative adjustment to the opening balance of our retained earnings of $12.745 billion • Carry
Slide 19: ATM Equity Offering vs. Trading Volume
ATM Equity Offering vs. Trading Volume MSTR issues new shares responsibly subject to market dynamics to achieve positive BTC Yield Avg. Daily ATM Shares Issued ('000,000) Avg. Daily Trading Volume ('000,000) 62.1 2.9% of cumulative trading volume 37.1 36.2 29.7 29.8 22.6 22.8 21.5 22.1 21.1 18.6 16.
Slide 20: Strong Capital Structure
Strong Capital Structure • Issued $3B convertible senior notes due 2029 and issued $15.1B shares of class A common stock under ATM in Q4 2024 • Called the $1.05B convertible senior notes due 2027, electing the conversion to common stock • Low blended cost of interest for all convertible notes Total
Slide 21: STRK Convertible Preferred Stock Summary Terms
STRK (“Strike”): Convertible Preferred Stock Summary Terms Security Series A Perpetual Strike Preferred Stock (STRK) Liquidation Preference $100.00 per share Offering Price $80.00 per share Number of Shares 7,300,000 Aggregate Liq. Preference $730,000,000 Gross Proceeds $584,000,000 Ranking Preferre
Slide 22: Bitcoin Debt Coverage
Bitcoin Debt Coverage Strategy’s bitcoin holdings at $98,700 per bitcoin provide significant coverage of its indebtedness Bitcoin Debt Coverage ($B) $47 $50 $44 $47 $(3) 0.00% Convertible Notes due 2029 $47BN BTC are the only = ~15x Coverage convertible tranche for $3BN Out-of-Money which the Conver
Slide 23: Bitcoin Dividend Coverage
Bitcoin Dividend Coverage Strategy’s bitcoin holdings at $98,700 per bitcoin provide significant coverage of future STRK dividends Bitcoin Dividend Coverage ($B) $47 $50 $44 $47 $(3) ÷ = ~750 years of STRK dividends ~100 years of STRK dividends if BTC declined by 75%(2) $0.06 Adjusted Pro Forma Valu
Slide 24: Strategy's Intelligent Leverage
Strategy’s Intelligent Leverage Strategy prudently levers “up” or “down” for the benefit of common stock shareholders, with a long- term target leverage ratio of 20-30% of Bitcoin holdings value Total Debt ($M) Total Pref ($M) (Debt + Pref) / Market Cap (Debt + Pref) / Bitcoin Value (1) $6,214 $730
Slide 25: BTC Key Performance Indicators (KPIs)
BTC Key Performance Indicators (KPIs) • 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 period. • BTC $
Slide 26: BTC KPI Targets
BTC KPI Targets Reflects the incremental value generated through Strategy treasury operations • Annual BTC Yield Target revised to minimum • Annual BTC $ Gain Target of $10 billion for 2025 15% for 2025 ₿TC Yield % ₿TC $ Gain 140,538 74.3% 12,983 2.9% 2024 QTD Q1 25 2024 QTD Q1 25 BTC Price $93,400
Slide 27: Strategy & Bitcoin
Strategy & Bitcoin Michael Saylor, Executive Chairman Copyright © 2025 Strategy. All Rights Reserved.
Slide 28: BTC Developments in Last Months
BTC Developments in Last 12 Months • Wall Street Adoption of ETFs • FASB Fair Value Accounting • Bitcoin President & Cabinet • End to the War on Crypto • 250+ Pro Crypto in Congress • Repeal of SAB 121 • Bitcoin Strategic Reserve Bill • Bitcoin Standard Companies • Growing Bitcoin Awareness Copyrigh
Slide 29: MicroStrategy is now Strategy
MicroStrategy is now Strategy TM Copyright © 2025 Strategy. All Rights Reserved. 29
Slide 30: Annualized Asset Performance Chart Over Four Years
Annualized Asset Performance Chart Over Four Years 110% 59% 29% 14% 8% 6% -5% MSTR Bitcoin Magnificent 7 S&P 500 Gold Real Estate (1) Bonds (2) Performance since August 10, 2020, when Strategy adopted its bitcoin strategy. Source: FactSet as of February 4, 2025. (1) Real Estate refers to iShares Res
Slide 31: Strategy vs. Top Performing Stocks in the S&P 500
Strategy vs. Top Performing Stocks in the S&P 500 2,718% 963% 878% 777% 708% 697% 601% 579% 522% 488% Strategy NVIDIA Targa Vistra Arista Axon Howmet Broadcom Quanta Builders Resources Networks Aerospace Services FirstSource Performance since August 10, 2020, when Strategy adopted its bitcoin strate
Slide 32: Strategy Performance Since Adoption of Bitcoin Strategy
Strategy Performance Since Adoption of Bitcoin Strategy % of S&P 500 companies outperformed MSTR 2,718% 100% Bitcoin 717% 99% Magnificent 7 269% 94% S&P 500 80% 62% Stock performance since August 10, 2020, when Strategy adopted its bitcoin strategy. Source: FactSet as of February 4, 2025. Copyright
Slide 33: MSTR is More Volatile than any S&P Stock
MSTR is More Volatile than any S&P 500 Stock Implied volatility for an at-the-money options contract with a 30-day expiration 89% 84% 84% 81% 73% 73% 71% 61% 61% 61% Strategy Enphase Moderna Amentum Vistra Monolithic NVIDIA Palantir Dell Arista Energy Networks Source: FactSet as of February 4, 2025.
Slide 34: MSTR Volatility = Liquidity & Options Open Interest
MSTR Volatility = Liquidity & Options Open Interest Top performers: Comparing Strategy to the Top stocks in the S&P 500 Options Open Interest ($B) Options Open Interest as % of Market Cap $290 90% $253 $133 $106 32% $93 $80 $73 22% 22% 21% 20% 20% 19% $48 18% 17% $46 $44 NVIDIA Tesla Meta Apple Micr
Slide 35: Relative Size of Options Market
Relative Size of Options Market Comparing Options Open Interest of Strategy to other Bitcoin-related companies and ETPs ($B) $73 $13 $3 $2 <$1 MSTR IBIT MARA RIOT HUT Source: FactSet as of February 4, 2025. Copyright © 2025 Strategy. All Rights Reserved. 35
Slide 36: MSTR Convertible Bonds Performance Since Issuance
MSTR Convertible Bonds Performance Since Issuance 224% 144% 143% 108% 82% 75% 68% 64% -12% 2025 2027 2028 2029 2030 2031 2032 Blended Bitcoin (1) Convert Convert Convert Convert Convert Convert Convert Convert (1) Source: FactSet as of February 4, 2025. (1) Weighted average appreciation of the bonds
Slide 37: MSTR has outperformed all major assets and S&P stocks
MSTR has outperformed all major assets and S&P 500 stocks 2718% Key Assets and Indices Big Tech Stocks 963% 711% 315% 178% 168% 107% 106% 98% 80% 79% 40% 54% 11% -20% Asset performance since August 10, 2020, when Strategy adopted its bitcoin strategy. Source: FactSet as of 4:00pm Eastern Time on Feb
Slide 38: MSTR Performance Metrics
(1) MSTR Performance Metrics Annualized Return Options Market BSE Return 110% 5.6x 2718% vs 59% for BTC IBIT, #1 amongst Crypto Complex Outperformed 100% S&P 500 stocks Implied Volatility Options Open Interest Options Open Interest as % of Market Cap 89% $72 B 90% More Volatile vs all S&P 500 #7 vs
Slide 39: BTC 2025 Catalysts
BTC 2025 Catalysts • Digital Assets Framework • Bitcoin ETF Enhancements • Bitcoin Banking Support • Bitcoin Corporate Adoption • Bitcoin Institutional Adoption • Bitcoin Global Adoption • Bitcoin Political Support Copyright © 2025 Strategy. All Rights Reserved. 39
Slide 40: Strategy Securities and the Capital Markets
Strategy Securities and the Capital Markets Security Strategies 1.5x Equity Bitcoin, Magnificent 7, Options, Derivatives 0.75x Bitcoin, Equity Index, Arbitrage, Hedge Funds, Convertible Alternatives 0.5x Preferred Stocks, High-Yield, Private Credit, STRK Real Estate, Hedge Funds, Alternatives 0.25x
Slide 41: 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 cushion $101B Common Equity Cushion BTC Cushion STRK Preferred Stock $94B (1) $46B Converts $39B $0.73B $0.73B $6B $6B Bitcoin
Slide 42: 2025 Targets
2025 Targets BTC Yield BTC $ Gain Annual Target 15% Annual Target $10 Billion $10B 15% 2.9% $1.24B (1) (1) YTD 2025 2025 Target YTD 2025 2025 Target (1) As of February 2, 2025. Copyright © 2025 Strategy. All Rights Reserved. 42
Slide 43: Appendix
Appendix Copyright © 2025 Strategy. All Rights Reserved.
Slide 44: Strategy – Bitcoin Treasury Company
Strategy – Bitcoin Treasury Company Unique value proposition versus Spot Bitcoin ETPs Strategy Spot Bitcoin ETPs Operating company Trust company 1 Company Structure Active control over capital structure Limited control over capital structure No management fee Non-zero management fee Ability to innov
Slide 45: Basic and Assumed Diluted Shares Outstanding Calculation
Basic and Assumed Diluted Shares Outstanding Calculation 6/30/2020 12/31/2020 12/31/2021 12/31/2022 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 2/2/2025 Total Bitcoin Holdings - 70,470 124,391 132,500 189,150 214,278 226,331 252,220 447,470 471,107 Shares Outstanding (in '000s) (1) Class A 7
Slide 46: Non-GAAP Reconciliations ($ in Millions)
Non-GAAP Reconciliations ($ in Millions) Q4 2024 Reconciliation of GAAP to non-GAAP income (loss) from operations Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Revenues $132.6 $121.9 $120.4 $129.5 $124.5 $115.2 $111.4 $116.1 $120.7 Cost of Revenues $26.7 $27.9 $27.1 $26.7 $28.2 $30.0 $30.9 $
Slide 47: Non-GAAP Reconciliations ($ in Millions)
Non-GAAP Reconciliations ($ in Millions) Q4 2024 Reconciliation of non-GAAP operating expenses Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 GAAP Operating Expenses $299.5 $114.3 $120.0 $128.0 $139.0 $288.9 $280.8 $514.3 $1,102.9 (1) Share-Based Compensation $15.9 $16.5 $14.4 $15.6 $18.5 $16
Slide 48: Non-GAAP Reconciliations ($ in Millions)
Non-GAAP Reconciliations ($ in Millions) Q4 2024 Reconciliation of total non-GAAP expenses Q4 23 Q4 24 GAAP Expenses Cost of Revenues $28.2 $34.2 Sales & Marketing $40.3 $35.0 Research & Development $30.2 $25.7 General & Administrative $29.4 $36.2 Digital Asset Impairment Losses, Net of Gains on Sal
Slide 49: Important Information About BTC Yield, BTC Gain and BTC $ Gain KPIs
Important Information About BTC Yield, BTC Gain and BTC $ Gain KPIs 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 Share
Slide 50: 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