Company: MSTR
Filing Date: 2025-01-03
Form Type: DEF 14A
Source: 0001140361-25-000231
Chunk: 158

Company: Strategy Inc
Filing Date: 2025-01-03
Form: DEF 14A
Chunk 158
---
,231 |
| Right of use asset                              |     |       18,180 |     |   16,027 |
| Total deferred tax liabilities                  |     |       25,846 |     |   24,416 |
| Total net deferred tax asset                    |     |     $757,216 |     | $187,954 |
| Reported as:                                    |     |              |     |          |
| Non-current deferred tax assets, net            |     |      757,573 |     |  188,152 |
| Non-current deferred tax liabilities            |     |         -357 |     |     -198 |
| Total net deferred tax asset                    |     |     $757,216 |     | $187,954 |

The Company had no U.S. NOL carryforwards as of December 31, 2023 and 2022. The Company had $3.0 million and $3.3 million of foreign NOL carryforwards as of December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company also had gross state NOLs of $10.1 million of which $9.1 million will expire by 2042 and the remainder can be carried forward indefinitely. The Company’s valuation allowance of $1.4 million at December 31, 2023 primarily related to the Company’s deferred tax assets related to foreign tax credits in certain jurisdictions that, in the Company’s present estimation, more likely than not will not be realized. The Company’s valuation allowance of $511.4 million at December 31, 2022 primarily related to the Company’s deferred tax asset related to the impairment on its bitcoin holdings, and was based on the market value of bitcoin at December 31, 2022. Valuation allowances have been established where the Company has concluded that it is more likely than not that such deferred tax assets are not realizable. The Company’s ability to realize its net deferred tax assets of $757.6 million as of December 31, 2023 is primarily dependent upon generating sufficient taxable income of the proper character in future years. Management has concluded that there is sufficient positive evidence to support the expected realization of these deferred tax assets primarily due to the fact that the excess of the market value of the Company’s bitcoin over

E-58

TABLE OF CONTENTS

the cost basis of the Company’s bitcoin as of December 31, 2023 results in a significant