Bitcoin Holdings and Strategy - As of March 31, 2025, the company held approximately 528,185 bitcoins, with an aggregate purchase price of $35.63 billion and an average purchase price of approximately $67,457 per bitcoin [191][194]. - The company has accumulated a total of approximately 447,470 bitcoins by December 31, 2024, with a carrying value of $23.91 billion [187]. - The company intends to fund further bitcoin acquisitions primarily through issuances of common stock and various fixed-income instruments [181]. - The company’s treasury reserve assets consist of cash and cash equivalents exceeding working capital requirements and bitcoin as the primary reserve asset [184]. - The company’s strategy includes advocacy and educational activities regarding Bitcoin as a digital capital asset [183]. - The company reported unrealized loss on digital assets for the three months ended March 31, 2025, was $5.906 billion, representing 98.5% of the company's operating expenses [193]. - The company incurred additional bitcoin advocacy costs and custodial fees as part of its bitcoin strategy, impacting cash from operations [257]. - The company is exposed to significant market price risk due to its bitcoin holdings, which are highly volatile [279]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $111.1 million, a decrease of 3.8% compared to $115.2 million in the same period of 2024 [200]. - Product licenses revenues decreased by 43.8% to $7.3 million in Q1 2025 from $12.9 million in Q1 2024, primarily due to a decrease in deal volume and size [208]. - Subscription services revenues increased by 61.6% to $37.1 million in Q1 2025, up from $23.0 million in Q1 2024, driven by conversions to cloud-based subscriptions [209]. - Product support revenues decreased by 16.2% to $52.5 million in Q1 2025 from $62.7 million in Q1 2024, attributed to customers transitioning to subscription services [210]. - Other services revenues fell by 15.0% to $14.2 million in Q1 2025, down from $16.7 million in Q1 2024, with consulting revenues decreasing by 13.4% [212]. - Operating expenses for Q1 2025 totaled $5.998 billion, significantly higher than $288.9 million in Q1 2024, primarily due to unrealized losses on digital assets [200]. - The company reported a loss from operations of $5.9 billion for Q1 2025, compared to a loss of $203.7 million in Q1 2024 [200]. - Non-GAAP loss from operations for the three months ended March 31, 2025, was $(5,909,593) thousand, compared to $(185,911) thousand in the same period of 2024 [274]. - Non-GAAP net loss attributable to common stockholders for Q1 2025 was $4.238 billion, compared to a loss of $142 million in Q1 2024 [277]. - Non-GAAP diluted loss per common share for Q1 2025 was $16.53, significantly higher than $0.83 in Q1 2024 [277]. Employee and Compensation Information - As of March 31, 2025, the company had 1,483 employees, a decrease from 1,851 employees a year earlier [203]. - Share-based compensation expense decreased to $11.8 million in Q1 2025 from $17.8 million in Q1 2024, mainly due to forfeitures of stock awards [204]. - Share-based compensation expense for Q1 2025 was $11.819 million, down from $17.791 million in Q1 2024 [277]. Cash Flow and Financing Activities - Net cash used in operating activities was $(2,389) thousand for the three months ended March 31, 2025, compared to $28,587 thousand in the same period of 2024, representing a change of 108.4% [256]. - Net cash used in investing activities increased by $6.030 billion for the three months ended March 31, 2025, primarily due to a $6.022 billion increase in purchases of bitcoins [258]. - Net cash provided by financing activities increased by $6.046 billion for the three months ended March 31, 2025, primarily due to a $4.263 billion increase in net proceeds from the sale of class A common stock [260]. - The company issued 12,624,595 shares of class A common stock under at-the-market equity offerings, generating total net proceeds of $4,399,205 thousand for the three months ended March 31, 2025 [271]. - The company received approximately $563.2 million in net proceeds from the issuance of 7,300,000 shares of Perpetual Strike Preferred Stock on February 5, 2025 [243]. - The company anticipates that cash and cash equivalents as of March 31, 2025, will not be sufficient to meet short-term liquidity needs, and may seek equity or debt financing [250]. - Long-term cash requirements include obligations related to long-term debt and payment of dividends on preferred stock, which are expected to exceed available cash [251]. - The company announced a capital plan to raise $84 billion in the medium-to-long term, including $42 billion of equity capital and $42 billion of fixed-income instruments [255]. Revenue Recognition and Deferred Revenue - As of March 31, 2025, total current and non-current deferred revenue and advance payments amounted to $219.674 million, a decrease of $23.3 million from $242.944 million on December 31, 2024 [234]. - The company expects to recognize approximately $275.8 million of the remaining performance obligation over the next 12 months, which totals $442.8 million as of March 31, 2025 [235]. Market and Currency Risks - The market price of one bitcoin on May 2, 2025, was reported at $96,972, indicating significant market volatility [194]. - A 10% adverse change in foreign currency exchange rates would have decreased reported cash and cash equivalents by 3.3% as of March 31, 2025 [283]. - If average exchange rates had changed unfavorably by 10%, revenues for Q1 2025 would have decreased by 3.8% [283]. - The company attempts to minimize foreign currency risk by converting excess foreign currency to U.S. dollar-denominated cash [282]. Tax and Interest Expenses - The effective tax rate for the three months ended March 31, 2025, was 29.0% on a pretax loss of $5.94 billion, compared to 75.2% on a pretax loss of $213.9 million in the same period of 2024 [229]. - Interest expense, net increased by $5.2 million to $17.11 million for the three months ended March 31, 2025, compared to $11.88 million in the prior year [225]. - Interest payments for the three months ended March 31, 2025, amounted to $8.2 million, compared to no interest payments in the same period of 2024 [263]. - Interest expense from amortization of debt issuance costs increased to $6.048 million in Q1 2025 from $2.557 million in Q1 2024 [277].

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices by Strategy Incorporated, following significant financial losses reported by the company [1][3]. Financial Performance - Strategy disclosed a $5.91 billion unrealized loss on its digital assets for Q1 2025, which is anticipated to lead to a net loss for the quarter [3]. - The company expressed concerns about its ability to regain profitability in future periods, particularly if it continues to incur significant unrealized losses related to its digital assets [3]. Market Reaction - Following the announcement of the financial losses, Strategy's stock price experienced a sharp decline during intraday trading on April 7, 2025 [3].

Group 1 - The article discusses the author's background as a former media research analyst with a focus on crypto, BTC miners, metals, and media equities [1] - The author expresses a personal investment strategy, indicating a beneficial long position in STRF and BTC-USD through various financial instruments [2] - The article emphasizes that the views expressed are personal opinions and not investment advice, highlighting the author's independence from any business relationships with mentioned companies [2][3] Group 2 - The author writes a newsletter called the Heretic Speculator, which is separate from Seeking Alpha [1] - There is a clear disclaimer that past performance does not guarantee future results, and no specific investment recommendations are made [3] - The article notes that the authors on Seeking Alpha include both professional and individual investors, some of whom may not be licensed or certified [3]

Core Viewpoint - The article discusses the transformation of Strategy (formerly MicroStrategy) into a Bitcoin treasury, highlighting the emergence of a new company, Twenty One, which aims to focus exclusively on accumulating Bitcoin for shareholders [1][2][4]. Group 1: Company Transformation - Strategy has shifted from being an enterprise software provider to primarily accumulating Bitcoin, with CEO Michael Saylor likening the stock to a leveraged Bitcoin ETF [1]. - The stock has gained popularity as Bitcoin's value has increased significantly over the past five years [2]. Group 2: Emergence of Twenty One - Twenty One, a new Bitcoin treasury backed by Tether, Bitfinex, and SoftBank, plans to go public via SPAC and aims to eliminate unrelated business activities to focus solely on Bitcoin accumulation [4][5]. - Following the announcement of its merger with Cantor Equity Partners, shares of Cantor tripled in value, reflecting investor excitement [5]. Group 3: Financial Projections - The merger gives Cantor a market value of approximately $400 million, with a $100 million cash pile for a 2.7% stake in Twenty One post-merger [6]. - Twenty One aims to establish a treasury of 42,000 Bitcoins, building on $3 billion worth of Bitcoin supplied by its backers [6]. Group 4: Valuation Insights - Investors are valuing Twenty One's planned Bitcoin holdings at nearly four times their actual value, with 2.7% of 42,000 Bitcoins worth about $108 million [7][8]. - The strategy of increasing Bitcoin per share is expected to provide a yield for investors, which is currently impractical for most Bitcoin holders [9]. Group 5: Comparison with Strategy - Strategy's stock trades at about twice the value of its Bitcoin treasury, allowing it to sell shares and reinvest in Bitcoin, thereby increasing stock value [10]. - The company's board has authorized a significant increase in share count, raising concerns about the risks associated with leveraged exposure to Bitcoin [11]. Group 6: Investor Expectations - Investors in Twenty One are anticipating even greater increases in Bitcoin per share compared to those in Strategy, as articulated by CEO Jack Mallers [12]. - While potential returns are high if Bitcoin appreciates, the volatility of Bitcoin poses significant risks, making the premium above net asset value a questionable investment [13].

Group 1 - The article discusses the author's personal investment strategies in crypto, specifically focusing on Bitcoin miners and related equities [1][2] - The author has a beneficial long position in shares of STRF, BTC-USD, MARA, and CLSK, indicating a positive outlook on these assets [2] - The article emphasizes that the views expressed are personal opinions and not investment advice, highlighting the author's independent analysis [2][3] Group 2 - The author has experience as a media research analyst, which may provide insights into market trends and investment opportunities in the crypto sector [1] - The article mentions the Heretic Speculator newsletter, suggesting a commitment to sharing investment insights and analysis beyond the platform [1] - The author clarifies that there is no business relationship with any mentioned companies, reinforcing the independence of the analysis [2]

Core Viewpoint - Canaccord Genuity analyst Joseph Vafi maintains a Buy rating on MicroStrategy Inc. and raises the price forecast from $409 to $464 despite the company reporting a slight revenue miss in Q1 [1] Financial Performance - MicroStrategy reported first-quarter revenue of $111.07 million, which was slightly below analyst expectations, and posted an adjusted loss of $16.53 per share [1] - The company raised funds through two successful preferred stock IPOs and a $2 billion zero-coupon convertible note, enabling the purchase of an additional 106,000 bitcoins for approximately $9.9 billion year-to-date [4] Bitcoin Holdings and Strategy - MicroStrategy's Bitcoin holdings now total 553,555 BTC, with over 15,000 Bitcoin acquired year-to-date at an average price of $92,737, primarily funded through ongoing stock offerings [2] - The firm has been the top-performing S&P 500 stock in recent years and continues to aggressively pursue its Bitcoin-focused treasury strategy [3] Market Dynamics - Despite a challenging Q1 for risk equities, MicroStrategy's equity premium saw a modest rise, indicating resilience [4] - Bitcoin has started to behave independently from traditional risk assets like growth stocks [4] Regulatory Environment - The regulatory environment for digital assets is becoming more favorable, with potential for clearer U.S. regulation expected by late 2025 and early 2026 [5] - More global companies are adopting MicroStrategy's Bitcoin strategy, which is viewed positively by the firm [5] Stock Performance - MSTR shares are trading higher by 3.09% to $393.02 as of the last check [6]

Core Viewpoint - Defiance ETFs has launched the Defiance Leveraged Long + Income MSTR ETF (MST), which combines leveraged exposure to MicroStrategy with a unique weekly income payout feature, targeting retail investors seeking both growth and income [1][2]. Investment Objective - The Fund aims for long-term capital appreciation while also seeking current income through an Income Generation Strategy that utilizes credit call spreads to manage risk and generate premium income [3]. Unique Features of MST - MST aims to deliver approximately 150% to 200% of MicroStrategy's daily price performance, providing leveraged exposure to its volatility and growth potential [9]. - The ETF generates high income through a credit call spreads strategy, distributing income to investors weekly, thus offering regular cash flow [9]. - By investing in MicroStrategy, known for its significant Bitcoin holdings, MST provides indirect access to Bitcoin market trends without direct cryptocurrency ownership [9]. MicroStrategy's Performance - MicroStrategy has experienced over 4,000% growth since its December 2022 low, driven by its Bitcoin-focused strategy and leadership in data analytics [5]. - Previous MSTR-based ETFs from Defiance have surpassed $1 billion in combined assets, indicating strong market interest and performance [5]. Company Background - Defiance, founded in 2018, is recognized for its innovative ETF offerings, specializing in thematic, income, and leveraged ETFs, allowing investors to take amplified positions in high-growth companies without needing a margin account [6].

Core Viewpoint - Strategy (MSTR.US) reported a significant increase in losses for Q1 2025 due to the adoption of new accounting standards, while continuing to focus on capital market strategies to increase its Bitcoin holdings [1][2]. Financial Performance - Q1 revenue decreased by 3.6% year-over-year to $111.1 million, below market expectations of $116.4 million, and down from $120.7 million in Q4 2024 [1]. - Adjusted earnings per share for Q1 were -$16.53, significantly worse than the analyst consensus of -$0.02, and a substantial increase from -$3.20 in the previous quarter and -$0.83 in the same quarter last year [1]. - The company reported a record loss of $4.2 billion in the previous quarter due to unrealized losses on Bitcoin holdings [2]. Accounting Changes - Strategy adopted a new fair value accounting policy for its Bitcoin holdings, which increased the beginning balance of retained earnings by $12.7 billion [2]. - The company confirmed an unrealized loss in Q1 due to Bitcoin's price at the quarter's end being $82,445, but noted that the current price is approximately $97,300, indicating an unrealized gain of about $8 billion [2]. Operational Costs - Q1 operating expenses surged by 1,976% year-over-year to $6 billion, primarily driven by unrealized losses on Bitcoin assets totaling $5.9 billion [2]. - Digital asset impairment losses for Q1 2024 were calculated at $191.6 million under the cost reduction accounting model applicable before January 1, 2025 [2]. Strategic Plans - The company raised its 2025 Bitcoin yield target from a minimum of 15% to 25% and increased its Bitcoin revenue target from $10 billion to $15 billion [3]. - Since late October, Strategy has consistently announced multi-billion dollar Bitcoin acquisitions, doubling its Bitcoin holdings in less than six months [3]. - Following the earnings report, Strategy's stock price slightly declined by 0.74% in after-hours trading [3].

Q1 2025 Financial Results May 1, 2025 Copyright © 2025 Strategy. All Rights Reserved. Q1 2025 Review Strategy Q1 2025 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS Some of the information we provide in this presentation regarding our future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially from these forward- looking statements due to various important factors, including the risk factors discussed in our most recent Annual Rep ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total software revenues of approximately $111 million, down 3.6% year-over-year, primarily due to lower product license and support revenues [24] - The company adopted fair value accounting for its Bitcoin holdings, resulting in a beginning balance of retained earnings adjustment of $17.9 billion due to the difference between carrying value and fair value [27] - The price of Bitcoin declined from approximately $93,400 at the end of 2024 to roughly $82,400 at the end of Q1 2025, leading to an unrealized fair value loss of $5.9 billion [28] Business Line Data and Key Metrics Changes - Subscription services revenues in the cloud segment increased by 62% year-over-year, now accounting for approximately 33% of total revenues, with subscription billings growing by 38% to $24.5 million [24] - The decline in product license revenues and support revenues was offset by growth in cloud services, indicating a successful transition from on-premise to cloud solutions [24] Market Data and Key Metrics Changes - The company remains the largest corporate holder of Bitcoin globally, holding 553,555 Bitcoins valued at $52 billion as of April 28, 2025 [6] - The company has raised $10 billion year-to-date through various capital market activities, including $6.6 billion in equity and $3.4 billion in fixed income instruments [12] Company Strategy and Development Direction - The company plans to continue its aggressive Bitcoin accumulation strategy, having utilized $37.3 billion of capital to increase its Bitcoin holdings [10] - The introduction of the new $42 billion capital plan aims to raise additional equity and fixed income capital through 2027, allowing for strategic flexibility [19][20] - The company emphasizes its unique position in the market, having outperformed major asset classes and the S&P 500 since adopting its Bitcoin strategy in 2020 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 25% BTC yield target for 2025, up from the previous target of 15%, reflecting strong year-to-date performance [23] - The management highlighted the positive impact of recent government actions on Bitcoin's legitimacy and institutional interest, setting the stage for deeper integration into the U.S. financial system [7] Other Important Information - The company has raised $6.6 billion through its ATM equity offering program and $2 billion through a convertible note offering in Q1 2025 [8] - The company’s capital structure is described as well-fortified, with $109 billion in equity market cap and significant Bitcoin reserves supporting its fixed income liabilities [35] Q&A Session Summary Question: What is the company's strategy for capital raising? - The company introduced the 2121 plan to raise $21 billion in equity and fixed income capital, achieving 65% completion in just six months, reflecting strong market access and investor demand [18] Question: How does the company plan to outperform Bitcoin? - The management discussed various BTC metrics and strategies to create shareholder value, emphasizing the importance of capital markets transactions and their long-term impact on stock performance [42][46]