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]

Financial Data and Key Metrics Changes - In Q1 2025, total software revenues were approximately $111 million, down 3.6% year over year, reflecting a transition from on-premises to cloud services [24] - The company raised $6.6 billion in net proceeds through its ATM equity offering program and $2 billion through a convertible note offering in Q1 2025 [8][12] - The Bitcoin holdings were valued at approximately $52 billion as of April 28, 2025, with a total of 553,555 Bitcoins [6] Business Line Data and Key Metrics Changes - Subscription services revenues in the cloud segment increased by 62% year over year, now making up approximately 33% of total revenues [24] - Product license revenues and support revenues continued to decline, but growth in cloud services is expected to offset this trend [24] Market Data and Key Metrics Changes - The company remains the largest corporate holder of Bitcoin globally, representing 2.6% of all Bitcoin in existence [6][9] - The price of Bitcoin declined from approximately $93,400 at the end of 2024 to roughly $82,400 at the end of Q1 2025, resulting in a $5.9 billion unrealized fair value loss [27][28] Company Strategy and Development Direction - The company plans to continue its capital markets innovation and Bitcoin operations to strategically accumulate more Bitcoin [10] - A new capital plan, the "42-42 Capital Plan," aims to raise $42 billion in equity and $42 billion in fixed income by the end of 2027 [19][20] - The company is focused on maintaining a disciplined leverage ratio between 20-30% to maximize long-term value [21] 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% [23] - The management highlighted the strong institutional interest in Bitcoin and the favorable regulatory environment as key drivers for future growth [7][14] Other Important Information - The company adopted fair value accounting for its Bitcoin holdings, which has changed how it values its Bitcoin treasury [26] - The company has issued innovative preferred equity offerings, which have shown strong liquidity and investor demand [30][31] Q&A Session Summary Question: What is the outlook for Bitcoin's performance? - Management believes Bitcoin will continue to grow, with a long-term forecast of 29% annual growth rate over the next 21 years [48] Question: How does the company plan to maintain its competitive edge? - The company aims to leverage its unique attributes, transparent investor relations, and innovative offerings to differentiate itself in the market [14] Question: What are the expected returns from the new capital plan? - The new capital plan is expected to generate significant value for shareholders, with a projected return on capital of $6.9 for every dollar raised [68]

Core Viewpoint - Strategy (MSTR, formerly MicroStrategy) reported a first-quarter revenue of $111.1 million, slightly below analyst expectations of $115.8 million [1] - The company experienced a significant net loss of $4.23 billion in the first quarter [1] - Cash and cash equivalents at the end of the first quarter totaled $60.3 million, also falling short of the analyst forecast of $106.2 million [1]

Financial Performance - Total revenues for Q1 2025 were $111.1 million, a 3.6% decrease year-over-year compared to Q1 2024[16] - The Company reported total revenues of $111,066,000 for the three months ended March 31, 2025, compared to $115,246,000 for the same period in 2024, reflecting a decrease of approximately 3.4%[35] - The gross profit for the three months ended March 31, 2025, was $77,095,000, down from $85,231,000 in the prior year, indicating a decline of about 9.6%[35] - Total revenues for the Software Business segment for the three months ended March 31, 2025, were $111,066 thousand, a decrease from $115,246 thousand in the same period of 2024[61] Net Loss and Expenses - Net loss for Q1 2025 was $4.217 billion, or $16.49 per diluted share, compared to a net loss of $53.1 million, or $0.31 per diluted share, in Q1 2024[16] - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $4,228,018,000, significantly higher than the net loss of $53,118,000 for the same period in 2024[35] - The Company incurred an unrealized loss on digital assets amounting to $5,906,005,000 for the three months ended March 31, 2025, compared to no such loss in the same period of 2024[35] - The Company’s total operating expenses for the three months ended March 31, 2025, were $5,998,507,000, compared to $288,933,000 in the prior year, reflecting a substantial increase[35] - For the three months ended March 31, 2025, MicroStrategy reported a loss from operations of $5,921,412 thousand, compared to a loss of $203,702 thousand for the same period in 2024, indicating a significant increase in operational losses[51] Bitcoin Holdings and Performance - The company holds 553,555 bitcoins at a total cost of $37.90 billion, averaging $68,459 per bitcoin[6] - The company achieved a "BTC Yield" of 13.7% year-to-date, surpassing the full year 2025 target of 15%[6] - Year-to-date "BTC $ Gain" reached $5.8 billion, meeting 58% of the annual target of $10 billion[4] - The company increased its 2025 "BTC Yield" target from 15% to 25% and "BTC $ Gain" target from $10 billion to $15 billion[6] - The market value of Bitcoin holdings at the end of March 31, 2025, was approximately $43.55 billion, reflecting a significant increase from $41.79 billion at the end of December 31, 2024[47] - The company held 528,185 Bitcoins as of March 31, 2025, an increase from 447,470 Bitcoins as of December 31, 2024, representing a growth of approximately 18%[47] - The average purchase price per Bitcoin held increased from $62,503 at the end of December 31, 2024, to $67,457 at the end of March 31, 2025[47] Assets and Liabilities - Total current assets decreased from $252.32 million as of December 31, 2024, to $203.61 million as of March 31, 2025, representing a decline of approximately 19.3%[37] - Digital assets increased significantly from $23.91 billion as of December 31, 2024, to $43.55 billion as of March 31, 2025, marking an increase of approximately 82.5%[37] - Total liabilities rose from $7.61 billion as of December 31, 2024, to $10.39 billion as of March 31, 2025, indicating an increase of approximately 36.5%[37] - Stockholders' equity increased from $18.23 billion as of December 31, 2024, to $32.22 billion as of March 31, 2025, reflecting a growth of approximately 76.7%[37] - The Company held total assets of $43,919,760 thousand as of March 31, 2025, compared to $6,351,539 thousand as of March 31, 2024, indicating a significant increase in total assets[61] Cash Flow - Net cash used in operating activities was $(2.39) million for the three months ended March 31, 2025, compared to $28.59 million provided in the same period of 2024[39] - Net cash used in investing activities surged to $(7.67) billion for the three months ended March 31, 2025, compared to $(1.64) billion in the same period of 2024[39] - The company reported a net increase in cash, cash equivalents, and restricted cash of $22.36 million for the three months ended March 31, 2025, down from $35.06 million in the same period of 2024[39] Shareholder Information - The Company’s Assumed Diluted Shares Outstanding increased to 256,473,000 for the three months ended March 31, 2025, from 171,942,000 in the same period of 2024[35] - The diluted loss per common share for the three months ended March 31, 2025, was $16.53, compared to $0.83 for the same period in 2024, showing a dramatic increase in losses per share[53] Strategic Focus - The Company has dedicated certain corporate personnel to its bitcoin strategy, reflecting a strategic focus on enhancing its digital asset management[58] - The Chief Operating Decision Maker (CODM) uses net income (loss) to assess the profitability of the software business, indicating a focus on controllable costs for future budgeting[59]

Core Viewpoint - The earnings season is highlighting three crypto-adjacent companies: Riot Platforms Inc, MicroStrategy Inc, and Block Inc, each with distinct market performances and expectations ahead of their earnings reports [1][6]. Group 1: Riot Platforms Inc - Riot stock has experienced a modest 4.91% increase over the past month but remains down over 24% year-to-date and nearly 20% over the past year [1]. - The stock is trading below its 200-day simple moving average (SMA) and just above its 50-day SMA, indicating a strongly bearish trend, although there are signs of buying pressure suggesting potential interest from bargain-hunters [2]. Group 2: MicroStrategy Inc - MicroStrategy stock has shown remarkable performance, up 285% over the past year and 32% year-to-date [3]. - The stock is trading above all key moving averages, including the 200-day SMA of $265.89, with its current price at $396.60, indicating strong bullish signals and one of the cleanest bullish charts in the bitcoin ecosystem [4]. Group 3: Block Inc - Block stock is down 31.87% year-to-date but has gained 6.66% in the past month, indicating some recovery [4]. - The stock is trading above the eight-day and 20-day SMAs, showing bullish signs, but remains significantly below the 200-day SMA of $72.07, suggesting that while investor sentiment is improving, there is still technical work needed [5]. Group 4: Earnings Expectations - All three companies are set to report earnings after the market close, with varying narratives: MicroStrategy is priced for perfection, Riot is attempting to reverse its bearish trend, and Block is looking to improve its market position [6].

Group 1: Company Strategy - Company Strategy purchased over $1.4 billion of Bitcoin on April 28, signaling confidence in the coin's increasing value [1] - Company Strategy now holds approximately $52 billion of Bitcoin, representing about 2.6% of the total supply, and has been acquiring around 2,087 bitcoins daily, significantly exceeding the daily mining rate of approximately 450 bitcoins [2] - Company Strategy has stated it does not intend to sell its Bitcoin unless absolutely necessary, and its financing strategy relies on issuing convertible debt, which is contingent on Bitcoin's appreciation [3] Group 2: Market Performance - Company Strategy's stock has increased by 190% over the past 12 months, outperforming Bitcoin's gain of 51% and the broader market's gain of 8% [4] - The company's aggressive purchasing strategy could lead to a supply constraint that may drive Bitcoin's price higher, but a significant drop in Bitcoin's price could trigger creditor demands for liquidation, negatively impacting both the stock and Bitcoin prices [4][5] Group 3: Investment Thesis - The investment thesis for Bitcoin remains strong, supported by the limited supply of 21 million coins, with about 19.9 million already in circulation, and increasing competition for existing supply from governments and corporations [6][7] - The concentration of Bitcoin in the wallets of large holders poses a risk of price volatility, but any short-term declines are not expected to affect the long-term value of Bitcoin as a hedge against inflation [8] - Investors are encouraged to consider a dollar-cost averaging (DCA) strategy for gradual exposure to Bitcoin, emphasizing a long-term investment perspective [9]

In four of the past five years, Bitcoin (BTC -0.41%) has been the top-performing asset in the world, and it hasn't even been close. In 2020, 2023, and 2024, Bitcoin delivered triple-digit returns to investors. Over the past five years, Bitcoin is now up a head-spinning 956%.It might seem unfathomable, then, that any stock could possibly surpass Bitcoin's performance over that time interval. So you might be surprised that Strategy (MSTR 3.21%) -- the company formerly known as MicroStrategy -- has done exactl ...