Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 185

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 185
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        8.7
        %

        3.4
        %

        (0.1
        )%

        Rate changes, including states

        (0.1
        )%

        11.0
        %

        (0.3
        )%

        Other permanent differences (1)

        0.3
        %

        (2.5
        )%

        (0.1
        )%

        Effective income tax rate

        39.7
        %

        444.6
        %

        (11.1
        )%
       
       (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,

        2024

        2023

        2022

        U.S.

        39.3
        %

        356.8
        %

        (10.2
        )%

        Foreign

        16.3
        %

        28.2
        %

        21.6
        %

        Combined

        39.7
        %

        444.6
        %

        (11.1
        )%
       
       The change in the Company’s effective tax rate in 2024, as compared to 2023, was primarily due to (i) increased tax benefits related to share-based compensation (including the income tax effects of exercises of stock options and vesting of share-settled restricted stock units), compared to (ii) 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, and (iii) the effects of changes in state tax rates in 2023.As of December 31, 2024 and 2023, the amount of cash and cash equivalents held by the Company’s U.S. entities was $8.8 million and $10.5 million, respectively, and by the Company’s non-U.S. entities was $29.3 million and $36.3 million, respectively. The Company earns a significant amount of its revenues outside the United States