Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 85

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 85
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 amounts reported above may not accurately represent fair market value, and the actual fair market value of our 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) we may not be able to sell our bitcoins at the Market Value amounts indicated above, at the market price as reported on the Coinbase exchange (our principal market) on the date of sale, or at all. Our digital asset impairment losses, net of gains on sale, have significantly contributed to our operating expenses. During 2023, digital asset impairment losses of $115.9 million represented 23.1% of our operating expenses, compared to digital asset impairment losses, net of gains on sale, of $1.286 billion during 2022, representing 76.9% of our operating expenses and contributing to our net loss of $1.470 billion for 2022. As of February 14, 2024, we held approximately 190,000 bitcoins that were acquired at an aggregate purchase price of $5.933 billion and an average purchase price of approximately $31,224 per bitcoin, inclusive of fees and expenses. As of February 14, 2024, at 4:00 p.m. Eastern Time, the market price of one bitcoin reported on the Coinbase exchange was $51,744.68.

E-4

TABLE OF CONTENTS

Operating Highlights The following table sets forth certain operating highlights (in thousands) for the years ended December 31, 2023 and 2022:

|                                                      |     | Years Ended December 31, |     |              |
|                                                      |     |                     2023 |     |         2022 |
| Revenues                                             |     |                          |     |              |
| Product licenses                                     |     |                  $75,351 |     |      $86,498 |
| Subscription services                                |     |                   81,179 |     |       60,746 |
| Total product licenses and subscription services     |     |                  156,530 |     |      147,244 |
| Product support                                      |     |                  263,888 |     |