MicroStrategy(US:MSTR)2026-02-05 21:14Bitcoin Holdings and Performance - The company holds 713,502 bitcoins with a total cost of $54.26 billion, averaging $76,052 per bitcoin, and achieved a BTC yield of 22.8% for FY2025[1][9]. - The average market price per bitcoin was approximately $83,740 as of January 30, 2026, reflecting a market value of $59.75 billion for the company's bitcoin holdings[1][10]. - The company utilizes key performance indicators (KPIs) such as Bitcoin Per Share (BPS), BTC Yield, BTC Gain, and BTC $ Gain to assess its bitcoin acquisition strategy[28]. - BPS represents the ratio of the company's bitcoin holdings to its Assumed Diluted Shares Outstanding, providing a baseline for assessing bitcoin acquisition performance[30]. - BTC Yield measures the percentage change in BPS over a period, helping investors understand the effectiveness of the company's bitcoin acquisition strategy[30]. - The company has adopted Accounting Standards Update No. 2023-08, requiring it to measure bitcoin at fair value, which may lead to unrealized gains or losses not reflected in its KPIs[32]. - The trading price of the company's class A common stock can deviate significantly from the market value of its bitcoin holdings, indicating that KPIs may not predict stock performance[31]. - The company has historically not paid dividends on its class A common stock, and presenting KPIs does not imply future dividend intentions[39]. Financial Performance - The company reported a net loss of $12.4 billion for Q4 2025, or $42.93 per diluted share, compared to a net loss of $670.8 million, or $3.03 per diluted share, for Q4 2024[1][11]. - Total revenues for Q4 2025 were $123.0 million, a 1.9% increase year-over-year, with subscription services revenues increasing by 62.1% to $51.8 million[1][11]. - The gross profit for Q4 2025 was $81.3 million, representing a gross margin of 66.1%, down from 71.7% in Q4 2024[1][11]. - Total revenues for the three months ended December 31, 2025, were $122.989 million, a slight increase from $120.697 million in the same period of 2024, while total revenues for the twelve months ended December 31, 2025, reached $477.233 million, compared to $463.456 million in 2024, reflecting a year-over-year growth of approximately 2%[44]. - Subscription services revenue for the three months ended December 31, 2025, was $51.758 million, up 62% from $31.931 million in the same period of 2024, and for the twelve months, it increased to $175.657 million from $106.776 million, representing a growth of 65%[44]. - The net loss for the three months ended December 31, 2025, was $12.437 million, compared to a net loss of $670,811 in the same period of 2024, while the net loss for the twelve months was $3.848 million, compared to $1.167 million in 2024[44]. - Basic loss per share for the three months ended December 31, 2025, was $(42.93), significantly higher than $(3.03) in the same period of 2024, and for the twelve months, it was $(15.23) compared to $(6.06) in 2024[44]. Asset and Liability Management - Total current assets as of December 31, 2025, were $2.564 billion, a substantial increase from $252.324 million as of December 31, 2024, primarily driven by an increase in cash and cash equivalents[47]. - Digital assets held by the company increased to $58.854 billion as of December 31, 2025, compared to $23.909 billion as of December 31, 2024, indicating a significant growth in digital asset holdings[47]. - Total liabilities as of December 31, 2025, were $10.598 billion, up from $7.614 billion in 2024, reflecting an increase in long-term debt and other liabilities[47]. - The company reported total operating expenses of $17.527 billion for the three months ended December 31, 2025, compared to $1.103 billion in the same period of 2024, largely due to unrealized losses on digital assets[44]. - The company’s total stockholders' equity increased to $44.123 billion as of December 31, 2025, from $18.230 billion in 2024, reflecting strong capital growth despite net losses[47]. Digital Asset Transactions - The company purchased a total of $7.66 billion in digital assets in Q1 2025, resulting in a balance of $35.63 billion by March 31, 2025[49]. - By June 30, 2025, the balance of digital assets increased to approximately $42.40 billion, following additional purchases of $6.77 billion in Q2 2025[49]. - The company reported an unrealized gain on digital assets of $14.05 billion by June 30, 2025, indicating significant appreciation in asset value[49]. - Digital asset purchases in Q3 2025 amounted to $4.95 billion, leading to a balance of approximately $47.35 billion by September 30, 2025[49]. - The company experienced an unrealized gain of $3.89 billion on digital assets in Q3 2025, contributing to overall asset growth[49]. - By December 31, 2025, the total carrying value of digital assets reached approximately $50.44 billion, with a total unrealized gain of $58.85 billion[49]. - In Q4 2025, the company purchased $3.08 billion in digital assets, funded by various public offerings and stock sales[49]. - The company utilized $4.37 billion from its class A common stock offering to purchase bitcoin in Q1 2025, demonstrating strong capital mobilization[49]. - Cumulative effect upon adoption of ASU 2023-08 resulted in a significant adjustment to the carrying value of digital assets, increasing it to $41.79 billion[49]. Capital Raising and Financial Strategy - In FY2025, the company raised $25.3 billion, making it the largest equity issuer in the U.S., representing approximately 8% of total U.S. equity issuance[1][3]. - The company executed five preferred equity IPOs in FY2025, raising $5.5 billion in gross proceeds[1][4]. - The company established a $2.25 billion USD Reserve, providing approximately 2.5 years of coverage for dividends and interest obligations[2][15]. - The flagship Digital Credit instrument, STRC, has scaled to $3.4 billion with a current dividend rate of 11.25%[2][3]. - The company expects ROC distributions to continue for the foreseeable future, estimated at ten years or more[2][21]. Future Outlook and Risks - Future performance may be influenced by various factors, including fluctuations in bitcoin prices and the availability of favorable financing[40]. - The company may experience increases in Assumed Diluted Shares Outstanding without corresponding increases in bitcoin holdings due to dividend payments on preferred stock[36]. - Forward-looking statements include risks such as market price fluctuations of bitcoin and changes in accounting treatment, which could materially affect actual results[42]. - Strategy Inc is the world's first and largest Bitcoin Treasury Company, focusing on financial innovation strategies to generate value from bitcoin holdings[24].