Company: MSTR
Filing Date: 2025-10-06
Form Type: 8-K
Source: 0001193125-25-230977
Chunk: 9

Company: Strategy Inc
Filing Date: 2025-10-06
Form: 8-K
Item: Item 8.01
Chunk 9
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0            0              0            0           0              0  
            Total      1,010,000      3,000,000      800,000      2,000,000      603,661      30,462      8,244,123  

Bitcoin Update

The following table presents a summary of the Company’s bitcoin acquisitions during the quarter ended September 30, 2025, and its bitcoin holdings as of September 30, 2025.

  During Period July 1, 2025 to September 30, 2025                                         As of September 30, 2025                                      
  BTC                                                   Aggregate           Average        Aggregate                     Aggregate            Average    
  Acquired                                              Purchase            Purchase       BTC                           Purchase             Purchase   
                                                        Price (1)           Price (1)      Holdings                      Price (1)            Price (1)  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  42,706                                                $ 4.95 billion      $ 115,959      640,031                       $ 47.35 billion      $ 73,983   

  (1)      Aggregate and average purchase prices are inclusive of fees and expenses.  

Although the Company continues to initially record its bitcoin purchases at cost, upon adoption of Accounting Standards UpdateNo. 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): (“ ASU2023-08”)on January 1, 2025, any subsequent increases or decreases in fair value are recognized as incurred in the Consolidated Statements of Operations, and the fair value of the Company’s bitcoin is reflected within the Consolidated Balance Sheets each reporting period-end. Our unrealized gain on digital assets for the quarter ended September, 2025 was $3.89 billion, which will result in a net gain for the quarter ended September 30, 2025, partially offset by a related deferred tax expense of $1.12 billion.

Upon adopting ASU2023-08on January 1, 2025, the Company is no longer required to account for its bitcoin under a cost-less-impairment accounting model and it no longer establishes a deferred tax asset related to bitcoin impairment losses. Instead, the Company establishes a deferred tax liability if the market value of bitcoin at the reporting date is greater than the average cost basis of its bitcoin holdings at such reporting date, and