Bitcoin 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, with a market value of the company's bitcoin holdings at $59.75 billion[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[26][28]. - BPS represents the ratio of the company's bitcoin holdings to its Assumed Diluted Shares Outstanding, expressed in Satoshis[29]. - BTC Yield measures the percentage change in BPS over a period, providing insight into the effectiveness of the company's bitcoin acquisition strategy[30]. - BTC Gain quantifies the increase in the number of bitcoins held by the company, while BTC $ Gain expresses this change in dollar value based on the market price of bitcoin[27][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 the 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 the KPIs do not suggest any future intention to do so[39]. - Future performance of the company may be influenced by various factors, including fluctuations in bitcoin prices and the availability of favorable financing[40]. - The company emphasizes that these KPIs are supplements to financial statements and should be used by sophisticated investors who understand their limitations[41]. 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[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% year-over-year to $51.8 million[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[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 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, indicating increased losses per share year-over-year[44]. Assets and Liabilities - 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 a rise 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 in 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]. - Research and development expenses for the twelve months ended December 31, 2025, were $93.860 million, down from $118.486 million in 2024, indicating a reduction in R&D spending[44]. - The company’s total stockholders' equity increased to $44.123 billion as of December 31, 2025, compared to $18.230 billion in 2024, reflecting a strong growth in equity position[47]. Digital Asset Transactions - The company purchased $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 $42.40 billion, following an additional purchase 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 value[49]. - Digital asset purchases in Q3 2025 amounted to $4.95 billion, leading to a balance of $47.35 billion by September 30, 2025[49]. - The total digital asset purchases for Q4 2025 were $3.08 billion, resulting in a year-end balance of $50.44 billion as of December 31, 2025[49]. - The cumulative effect of adopting ASU 2023-08 resulted in a balance of $41.79 billion immediately following the adoption[49]. - The company utilized $4.37 billion from its class A common stock offering to purchase bitcoin in Q1 2025[49]. - In Q2 2025, the company raised $5.19 billion from its class A common stock offering for further bitcoin purchases[49]. - The total unrealized loss on digital assets reached $17.44 billion by the end of Q4 2025[49]. Capital Raising Activities - 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[3][4]. - 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[15][16].
MicroStrategy Inc Series A Pfd(STRK) - 2025 Q4 - Annual Results