Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 207

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 207
---
 otherwise generate funds using our bitcoin holdings.

F-30

TABLE OF CONTENTS

Additionally, we periodically engage in advocacy and educational activities regarding the continued acceptance and value of Bitcoin as an open, secure protocol for an internet-native digital capital asset, and we leverage our software development capabilities to explore innovation in Bitcoin applications. Under our Treasury Reserve Policy, our treasury reserve assets consist of:

| • | cash and cash equivalents and short-term investments (“Cash Assets”) held by us that exceed working capital requirements; and |

| • | bitcoin held by us, with bitcoin serving as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets. |

During 2023 and 2024, we used proceeds from various capital raising transactions to purchase bitcoin. As of September 30, 2024, we held an aggregate of approximately 252,220 bitcoins. The following table presents a roll-forward of our bitcoin holdings, including additional information related to our bitcoin purchases, sales, and digital asset impairment losses within the respective periods:

|                                 |     | Source of    
 Capital Used 
 to Purchase  
 Bitcoin      |     |  Digital Asset 
  Original Cost 
          Basis 
 (in thousands) |     |  Digital Asset 
     Impairment 
         Losses 
 (in thousands) |     |  Digital Asset 
 Carrying Value 
 (in thousands) |     |   Approximate 
     Number of 
 Bitcoins Held |     |       Approximate 
  Average Purchase 
 Price Per Bitcoin |
| Balance at December 31, 2022    |     |              |     |     $3,993,190 |     |   $(2,153,162) |     |     $1,840,028 |     |       132,500 |     |           $30,137 |
| Digital asset purchases         |     | -a           |     |        179,275 |     |                |     |        179,275 |     |         7,500 |     |            23,903 |
| Digital asset impairment losses |     |              |     |                |     |        -18,911 |     |        -18,911 |     |               |     |                   |
| Balance at March 31, 2023       |     |              |     |     $4,172,465 |     |   $(2,172,073) |     |     $2,000,392 |     |