Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 18

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 2
Chunk 18
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 Years Ended December 31,

    2024

    2023

    % Change

    Digital asset impairment losses
     
    $
    1,789,862

    $
    115,851

    1,445.0
    %

We did not sell any of our digital assets during 2024 or 2023. As mentioned above, the accounting for our digital assets will change upon our adoption of ASU 2023-08 on January 1, 2025 and we will no longer record digital asset impairment losses. Upon adoption of ASU 2023-08, we are required to report our digital assets at fair value, with resulting gains and losses from changes in fair value  recognized in net income each reporting period. As a result, we expect fluctuations in the price of bitcoin to have a significant impact on our future operating results.  See Note 3, Recent Accounting Standards, to the Consolidated Financial Statements for further information. 

Interest Expense, Net

Interest expense, net, primarily relates to the contractual interest expense and amortization of issuance costs related to our long-term debt arrangements. The following table sets forth interest expense, net (in thousands) for the periods indicated:

    Years Ended December 31,

    2024

    2023

    Interest expense, net:

    2025 Convertible Notes
     
    $
    3,865

    $
    7,918

    2027 Convertible Notes

    4,046

    4,029

    2028 Convertible Notes

    2,939

    0

    2029 Convertible Notes

    787

    0

    2030 Convertible Notes

    7,241

    0

    2031 Convertible Notes

    6,063

    0

    2032 Convertible Notes

    11,067

    0

    2028 Secured Notes

    23,915

    32,271

    2025 Secured Term Loan

    0

    3,812

    Other interest expense, net

    2,018

    930

    Total interest expense, net
     
    $
    61,941

    $
    48,960

Interest expense, net, increased $13.0 million during 2024, as compared to the prior year,