Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 99

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 99
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 equivalents. In addition, upon sale of our bitcoin, we may incur additional taxes related to any realized gains or we may incur capital losses as to which the tax deduction may be limited. The following table sets forth a summary of our cash flows (in thousands) and related percentage changes for the periods indicated:

|                                           |     | Years Ended December 31, |     |            |     | % Change |
|                                           |     |                     2023 |     |       2022 |     |          |
| Net cash provided by operating activities |     |                  $12,712 |     |     $3,211 |     | 295.9%   |
| Net cash used in investing activities     |     |             $(1,905,237) |     | $(278,590) |     | 583.9%   |
| Net cash provided by financing activities |     |               $1,889,886 |     |   $265,188 |     | 612.7%   |

Net cash provided by operating activities. The primary source of our cash provided by operating activities is cash collections of our accounts receivable from customers following the sales and renewals of our product licenses, subscription services and product support, as well as consulting and education services. Our primary uses of cash in operating activities are for personnel-related expenditures for software development, personnel-related expenditures for providing consulting, education, and subscription services, and for sales and marketing costs, general and administrative costs, interest expense related to our long-term debt arrangements, and income taxes. In 2023 and 2022, non-cash items to further reconcile net income (loss) to net cash provided by operating activities consist primarily of depreciation and amortization, reduction in the carrying amount of operating lease right-of-use assets, credit losses and sales allowances, deferred taxes, release of liabilities for unrecognized tax benefits, share-based compensation expense, digital asset impairment losses, net of gains on sale, amortization of the issuance costs on our long-term debt, and gain on extinguishment of debt. Net cash provided by operating activities increased $9.5 million during 2023, as compared to the prior year, due to a $1.899 billion increase in net income and a $15.6 million increase from changes in operating assets and liabilities, partially offset by a $1.905 billion decrease in non-cash items (principally related to digital asset impairment losses and deferred taxes and gain on extinguishment of debt). Net cash used in investing activities