Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 157

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 157
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 444.6% |     |  -11.1% |     |  34.0% |

| (1) | Included in the “Other permanent differences” category in the table above are other permanent items, each below the threshold required for separate presentation in the table. |

The Company’s U.S. and foreign effective tax rates for loss before income taxes were as follows for the periods indicated:

|          |     | Years Ended December 31, |     |         |     |       |
|          |     |                     2023 |     |    2022 |     |  2021 |
| U.S.     |     |                   356.8% |     | (10.2)% |     | 33.0% |
| Foreign  |     |                    28.2% |     |   21.6% |     | 14.1% |
| Combined |     |                   444.6% |     | (11.1)% |     | 34.0% |

The change in the Company’s effective tax rate in 2023, as compared to 2022, was primarily due to (i) the release of the valuation allowance during 2023 on the Company’s deferred tax asset related to the impairment on its bitcoin holdings, attributable to the increase in the market value of bitcoin as of December 31, 2023 compared to December 31, 2022, compared to (ii) the establishment of a valuation allowance during 2022 on the Company’s deferred tax asset related to the impairment on its bitcoin holdings, attributable to the decrease in market value of bitcoin as of December 31, 2022 compared to December 31, 2021. As of December 31, 2023 and 2022, the amount of cash and cash equivalents held by the Company’s U.S. entities was $10.5 million and $14.8 million, respectively, and by the Company’s non-U.S. entities was $36.3 million and $29.0 million, respectively. The Company earns a significant amount of its revenues outside the United States. The Company repatriated foreign earnings and profits of $20.3 million during 2023 and $44.7 million during 2022. As of December 31, 2023, the Company has not indefinitely reinvested any of its undistributed foreign earnings and has recorded a deferred tax liability of $2.9 million on