Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 221

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 221
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 Incentive Plans, (ii) a $6.1 million net increase in share-based compensation expense primarily attributable to the grant of additional awards under the Stock Incentive Plans, partially offset by certain awards that became fully vested and the forfeiture of certain awards, (iii) a $5.5 million increase in legal, consulting, and other advisory costs, (iv) a $2.5 million increase in custodial fees incurred on our bitcoin holdings, (v) a $0.9 million increase in severance costs due to headcount reductions, and (vi) a $0.6 million increase in costs related to the maintenance and operations of our corporate aircraft, partially offset by (vii) a $2.3 million decrease in employee salaries primarily attributable to a decrease in average staffing levels, partially offset by wage increases, (viii) a $1.2 million loss recorded in the prior year with respect to the Brazilian matters noted in Note 6, Commitments and Contingencies, to the Consolidated Financial Statements, (ix) a $0.7 million decrease in business insurance costs, and (x) a $0.5 million decrease in variable compensation. Digital asset impairment losses. Digital asset impairment losses are recognized when the carrying value of our digital assets exceeds their lowest fair value at any time since their acquisition. Impaired digital assets are written down to fair value at the time of impairment, and such impairment loss cannot be recovered for any subsequent increases in fair value. Gains (if any) are not recorded until realized upon sale. The following table sets forth digital asset impairment losses (in thousands) and related percentage changes for the periods indicated:

|                                 |     | Three Months Ended 
      September 30, |     |         |     |       % 
  Change |     | Nine Months Ended 
     September 30, |     |         |     | %      
 Change |
|                                 |     |               2024 |     |    2023 |     |    2024 |     |              2023 |     |         |     |        |
| Digital asset impairment losses |     |           $412,084 |     | $33,559 |     | 1127.9% |     |          $783,807 |     | $76,613 |     | 923.1% |

We did not sell any of our digital assets during the nine months ended September 30, 2024 or 2023. We may continue to incur