Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 82

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 82
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 strategy also contemplates that we may (i) periodically sell bitcoin for general corporate purposes, including to generate cash for treasury management (which may include debt repayment), or in connection with strategies that generate tax benefits in accordance with applicable law, (ii) enter into additional capital raising transactions that are collateralized by our bitcoin holdings, and (iii) consider pursuing strategies to create income streams or otherwise generate funds using our bitcoin holdings. Under our Treasury Reserve Policy, our treasury reserve assets consist of:

| • | Cash Assets held by us that exceed working capital requirements; and |

| • | bitcoin held by us, with bitcoin serving as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets. |

During 2022 and 2023, we used proceeds from various capital raising transactions to purchase bitcoin. As of December 31, 2023, we held an aggregate of approximately 189,150 bitcoins, with 16,081 bitcoins held directly by MicroStrategy Incorporated and 173,069 bitcoins held by MacroStrategy. As of December 31, 2023, all of the approximately 16,081 bitcoins held directly by MicroStrategy Incorporated, which had a market value of $683.9 million based on the $42,531.41 market price of one bitcoin on the Coinbase exchange at 4:00 p.m. Eastern Time on December 31, 2023, are held in a separate custodial account from those held by MacroStrategy and serve as part of the collateral securing the 2028 Secured Notes. See below for further disclosure surrounding market value calculations of our bitcoin. The following table presents a roll-forward of our bitcoin holdings, including additional information related to our bitcoin purchases, sales, and digital asset impairment losses within the respective periods:

|                                 |     | Source of    
 Capital Used 
 to Purchase  
 Bitcoin      |     |  Digital Asset 
  Original Cost 
          Basis 
 (in thousands) |     |  Digital Asset 
     Impairment 
         Losses 
 (in thousands) |     |  Digital Asset 
 Carrying Value 
 (in thousands) |     |   Approximate 
     Number of 
 Bitcoins Held 
    (Disposed) |     |       Approximate 
  Average Purchase 
 or Sale Price Per 
           Bitcoin |
| Balance at December 31, 2021    |     |              |     |     $3,751,529 |     |     $(901,319) |     |     $