Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 229

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 229
---
ed. We do not believe we will need to sell or engage in other transactions with respect to any of our bitcoins within the next twelve months to meet our working capital requirements, although we may from time to time sell or engage in other transactions with respect to our bitcoins as part of treasury management operations, as noted above. The bitcoin market historically has been characterized by significant volatility in its price, limited liquidity and trading volumes compared to sovereign currencies markets, relative anonymity, a developing regulatory landscape, susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and various other risks inherent in its entirely electronic, virtual form and decentralized network. During times of instability in the bitcoin market, we may not be able to sell our bitcoins at reasonable prices or at all. As a result, our bitcoins are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash 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:

|                                                     |     | Nine Months Ended September 30, |     |            |     | %      
 Change |
|                                                     |     |                            2024 |     |       2023 |     |        |
| Net cash (used in) provided by operating activities |     |                       $(35,708) |     |    $11,528 |     | 409.8% |
| Net cash used in investing activities               |     |                    $(4,010,904) |     | $(690,550) |     | 480.8% |
| Net cash provided by financing activities           |     |                      $4,046,067 |     |   $676,025 |     | 498.5% |

Net cash (used in) 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,

F-44

#### TABLE OF CONTENTS
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,