Company: MSTR
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000950170-25-021814
Chunk: 587

Company: Strategy Inc
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 587
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 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, primarily as a result of (i) interest incurred related to the 2032 Convertible Notes (which were issued in June 2024), (ii) interest incurred related to the 2030 Convertible Notes and 2031 Convertible Notes (which were each issued in March 2024), (iii) interest incurred related to the 2028 Convertible Notes (which were issued in September 2024), and (iv) interest incurred related to trade credits with our bitcoin execution partners (which are included 

55

within “Other interest (income) expense, net” in the table above), partially offset by (iv) the 2028 Sec