Company: MSTR
Filing Date: 2025-01-06
Form Type: 8-K
Source: 0001193125-25-001854
Chunk: 12

Company: Strategy Inc
Filing Date: 2025-01-06
Form: 8-K
Item: Item 8.01
Chunk 12
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 (d)      The “ Market Value of Bitcoin Held at End of Quarter Using Highest Market Price” represents a mathematical calculation consisting of the highest market price for one bitcoin reported on the Coi...  
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  (e)      The “ Market Price Per Bitcoin at End of Quarter” represents the market price of one bitcoin on the Coinbase exchange at 4:00 p.m. Eastern Time on the last day of the quarter.  
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  (f)      The “ Market Value of Bitcoin Held at End of Quarter Using Ending Market Price” represents a mathematical calculation consisting of the market price of one bitcoin on the Coinbase exchange at 4...  
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Bitcoin and bitcoin markets may be subject to manipulation and the spot price of bitcoin may be subject to fraud and manipulation. Accordingly, the Market Value amounts reported above may not accurately represent fair market value, and the actual fair market value of the Company’s bitcoin may be different from such amounts and such deviation may be material. Moreover, (i) the bitcoin market historically has been characterized by significant volatility in price, limited liquidity and trading volumes compared to sovereign currencies markets, relative anonymity, a developing regulatory landscape, potential

susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and various other risks that are, or may be, inherent in its entirely electronic, virtual form and decentralized network and (ii) the Company may not be able to sell its bitcoins at the Market Value amounts indicated above, at the market price as reported on the Coinbase exchange (the Company’s principal market for bitcoin) on the date of sale, or at all.

During the three months ended December 31, 2024 and for the year ended December 31, 2024, the Company incurred digital asset impairment losses of $1.01 billion and $1.79 billion, respectively.

Recent Accounting Standards

In December 2023, the Financial Accounting Standards Board (“ FASB”) issued Accounting Standards UpdateNo. 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): (“ ASU2023-08”).