Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 108

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 2
Chunk 108
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 Stock Incentive Plan or applicable restricted stock unit agreement). In the second quarter of 2024, the Company transitioned from a “net settlement” approach, which it previously used in nearly all jurisdictions in which restricted stock units were granted, to generally using a “sell-to-cover” approach for settling its share-settled restricted stock units.  Under a “net settlement” approach, when settling restricted stock units, the Company withholds shares equal in value to the statutory withholding obligations and pays the tax withholding amount from its own cash reserves. The tax payment under the “net settlement” approach is reflected as a financing activity on the Consolidated Statements of Cash Flows. Under a “sell-to-cover” approach, shares underlying vested awards are issued in full and participants sell shares in the market in amounts necessary to satisfy statutory withholding obligations. The tax withholding obligations are therefore satisfied with proceeds from these sales rather than from the Company’s cash reserves. As of December 31, 2024, there were 1,230,672 share-settled restricted stock units outstanding under the Stock Incentive Plans.  The following table summarizes the Company’s share-settled restricted stock unit activity (in thousands) for the periods indicated: 

        Share-Settled Restricted Stock Units Outstanding

        Aggregate

        Units

        Intrinsic Value

        Balance as of January 1, 2022

        1,051

        Granted

        602

        Vested

        (282
        )
         
        $
        6,604

        Forfeited

        (175
        )

        Balance as of December 31, 2022

        1,196

        Granted

        1,229

        Vested

        (365
        )
         
        $
        14,817

        Forfeited

        (208
        )

        Balance as of December 31, 2023

        1,852

        Granted

        328

        Vested

        (571
        )
         
        $
        112,476

        Forfeited

        (378
        )

        Balance as of December 31, 2024

        1,231

        Expected to vest as of December 31, 2024

        1,231

        $
        356,427

       During the year ended December 31, 2024, 570,980 share-settled restricted