Strategy (NasdaqGS:MSTR) Q4 2025 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAndrew Kang - CFODan Hillary - Head of TreasuryLarry Lepard - Managing PartnerLyn Alden - Founder and PrincipalMichael Saylor - Executive ChairmanPete Christiansen - DirectorPhong Le - CEOShirish Jajodia - Corporate Treasurer and Head of Investor RelationsTom Lee - Managing Partner and the Head of ResearchConference Call ParticipantsAndrew Harte - Director and FinTech AnalystLance Vitanza - Research AnalystMark ...

Strategy (NasdaqGS:MSTR) Q4 2025 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAndrew Kang - CFODan Hillary - Head of TreasuryLarry Lepard - Managing PartnerLyn Alden - Founder and PrincipalMichael Saylor - Executive ChairmanPete Christiansen - DirectorPhong Le - CEOShirish Jajodia - Corporate Treasurer and Head of Investor RelationsTom Lee - Managing Partner and the Head of ResearchConference Call ParticipantsAndrew Harte - Director and FinTech AnalystLance Vitanza - Research AnalystMark ...

Strategy (NasdaqGS:MSTR) Q4 2025 Earnings call February 05, 2026 05:00 PM ET Speaker10Jajodia, Corporate Treasurer and Head of Investor Relations at Strategy. I will be your moderator for Strategy's 2025 fourth quarter earnings webinar. We will start the call with a 60-minute presentation, starting with Andrew Kang, followed by Phong Le, and then Michael Saylor. This will be followed by a 30-minute interactive Q&A session with four Wall Street equity analysts and four Bitcoin analysts. Before we proceed, I ...

Q4 2025 Financial Results February 5, 2026 Copyright © 2026 Strategy. All Rights Reserved. Strategy Q4 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 fluctuations in the price of Bitcoin and the risk factors discusse ...

Core Insights - Strategy Inc. has outperformed many Wall Street giants since adopting a Bitcoin-focused strategy, ranking just behind Nvidia in terms of performance [1] - The company has achieved a 1,173% gain since adopting Bitcoin as its primary treasury reserve asset, with an annualized return of 60% [2] - Bitcoin itself has risen 674% during the same period, with an annualized gain of 45% [3] Performance Comparison - Over the past year, Strategy has lost 52% of its value, while competitors like Nvidia, Tesla, Microsoft, and Alphabet have generated positive returns [4] - The performance of Strategy's stock is often viewed as a leveraged proxy for Bitcoin, which can lead to significant losses when Bitcoin's price declines [4] - The company's market valuation is currently at $49.21 billion, with Bitcoin holdings valued at over $62 billion, indicating that the stock is trading at a discount to its net asset value [5] Recent Market Activity - As of the latest trading session, Strategy shares closed at $157.33, reflecting a 5.77% decrease [6] - The stock has shown a weaker price trend across short, medium, and long-term periods [6]

Core Viewpoint - Michael Saylor asserts that Bitcoin is digital gold and envisions a future where global credit is built on it [1] Group 1: Bitcoin Accumulation and Strategy - Strategy is acquiring nearly $500 million to $1 billion worth of Bitcoin weekly and has managed $60 billion in equities over the past 14 months, positioning itself as the fifth largest treasury in the S&P universe [2] - With the current pace of accumulation, Strategy is projected to become the largest treasury in about four to eight years [2] Group 2: Institutional Support and Credit Extension - The entire US cabinet, including President Donald Trump, along with financial and non-financial regulators, supports the idea of Bitcoin as a credit vehicle [3] - Major American banks, including previously skeptical institutions like JPMorgan and Bank of America, are now extending credit on Bitcoin and its derivatives [3] Group 3: Financial Innovations and Dividends - Strategy has created the world's first credit vehicle, generating $800 million in dividends with approximately 10% dividend rates through equity sales, Bitcoin commodities, or derivatives [4] - Saylor believes Bitcoin is a superior long-term investment compared to credit instruments, predicting a 30% annual increase over the next twenty years [5] Group 4: Digital Credit Concept - The concept of digital credit is based on digital capital, with Bitcoin being identified as the necessary commodity for public companies to capitalize on securities [7] - Saylor differentiates between capital and credit, illustrating that while capital requires time to yield returns, credit provides immediate cash flow [8]

Core Viewpoint - The company has established a U.S. dollar reserve of $1.44 billion, positioning itself as the world's largest "Bitcoin Treasury Company" to enhance liquidity amid volatile digital-asset markets [1][2]. Group 1: Financial Strategy and Reserves - The U.S. dollar reserve will support dividend payments on preferred stock and interest obligations, aiming to maintain coverage for at least 12 months, with a goal to extend it to 24 months or more [2]. - The reserve will be managed at the company's discretion and may be adjusted based on market conditions and capital requirements [2]. - The company currently holds 650,000 Bitcoin, which is approximately 3.1% of the total eventual supply, and the USD Reserve covers 21 months of dividends [3]. Group 2: Earnings Guidance and Projections - The company has revised its FY2025 earnings guidance due to recent declines in Bitcoin's trading price, projecting operating income to range from a loss of $7.0 billion to a profit of $9.5 billion, and net income from a loss of $5.5 billion to a gain of $6.3 billion if Bitcoin ends 2025 between $85,000 and $110,000 [4]. - Diluted earnings per share are expected to range from a loss of $17.0 to earnings of $19.0 per share, contingent on successful capital raises to achieve the 2025 Bitcoin Yield Target [5]. Group 3: Bitcoin KPI Targets - The company anticipates its Bitcoin yield for 2025 to fall between 22.0% and 26.0%, with Bitcoin dollar gains projected between $8.4 billion and $12.8 billion [6]. - These targets will be pursued through preferred stock offerings, disciplined equity issuance, and continued accumulation of Bitcoin [6]. Group 4: Market Reaction - The announcement has elicited criticism from market observers, including Peter Schiff, who suggested that the establishment of a USD Reserve signals a negative outlook for the company [7].

Core Viewpoint - MicroStrategy has established a $1.44 billion USD reserve to support dividend payments and service debt obligations, marking a strategic shift in its risk management approach [1][5]. Group 1: Financial Strategy - The newly created "USD Reserve" aims to maintain a balance sufficient to cover at least 12 months of dividends, with plans to extend this coverage to 24 months or more [2]. - The reserve was financed through proceeds from an at-the-market stock offering, indicating a structural change in how the company manages its financial resources [5]. - The company's modified NAV (mNAV) has fallen to 1, meaning its equity value is now trading at the value of its underlying Bitcoin holdings without any market premium [6]. Group 2: Bitcoin Holdings and Market Position - MicroStrategy currently holds 650,000 Bitcoin, which represents approximately 3.1% of the total supply that will ever exist [3][6]. - The establishment of the USD Reserve is intended to insulate the company from short-term Bitcoin volatility while allowing it to continue accumulating Bitcoin [6]. - This move aligns with the long-term vision of becoming the world's leading issuer of "Digital Credit," focusing on stable cash flows rather than solely on Bitcoin appreciation [7]. Group 3: Market Performance - MicroStrategy's stock has declined over 60% from its peak, trading near $177, influenced by weaker Bitcoin prices and changing market sentiment [4]. - The company has revised its fiscal year 2025 guidance, adjusting assumptions for Bitcoin's year-end price due to recent market declines [8].

Core Viewpoint - Michael Saylor, the executive Chairman of Strategy (MSTR), continues to invest in Bitcoin, recently purchasing an additional 130 BTC for $11.7 million, bringing the company's total holdings to 650,000 BTC, despite market volatility and criticism from Bitcoin skeptics [1][2][5]. Group 1: Bitcoin Holdings and Investments - The recent purchase of 130 BTC was made at an average price of approximately $89,960 per BTC, increasing the total Bitcoin holdings to 650,000 BTC [2]. - The company's cumulative investment in Bitcoin is around $48.38 billion, with an average purchase price of $74,436 per BTC [3]. - Despite a recent price correction, Saylor remains optimistic about Bitcoin, stating the company is prepared for a price drop to $25,000 [3]. Group 2: Market Conditions and Stock Performance - On December 1, Bitcoin experienced a flash crash, dropping to $86,000, which resulted in over $600 million in liquidations [4]. - Following the recent Bitcoin purchase, MSTR stock fell by 4.6% in pre-market trading, slipping below the $170 level amid broader market declines [4]. Group 3: USD Reserve for Dividend Payments - The company has established a $1.44 billion USD reserve to fund preferred stock dividend payments and meet debt obligations, as disclosed in a filing with the SEC [5]. - This USD reserve was funded through proceeds from an at-the-market equity offering, with plans to maintain a balance sufficient for at least 12 months of dividend payments, aiming to extend this to 24 months in the future [6]. - Saylor emphasized that the creation of a USD reserve is a strategic step to better navigate market volatility while pursuing the vision of being a leading issuer of Digital Credit [6].

Bitcoin Outlook & Market Drivers - Michael Saylor is bullish on Bitcoin in 2026, driven by bank acceptance and credit development within the banking network [4] - Half of the large US banks have started extending credit against IBIT in the past six months, with Charles Schwab and City planning to custody Bitcoin and extend credit against it in the first half of 2026 [4] - The impact of the Bitcoin halving is diminishing, with its $20 million impact being a third-order issue compared to the $50 billion daily liquidity [7] - Structural developments, such as banks extending $50 billion in credit and the SEC loosening restrictions on derivatives trading on IBIT (leading to open interest increasing from $10 billion to $50 billion), are the primary drivers of Bitcoin [8] Digital Asset Treasury (DAT) Companies & Digital Credit - Strategy was the first company to purchase Bitcoin as digital capital, with over 21,000 Bitcoin for $250 million in 2020 [9] - The number of companies holding Bitcoin as digital capital has grown significantly, from a handful to over 200 [11] - Strategy has evolved into the largest issuer of digital credit, with only a few other companies like Strive and MetaPlanet also in the digital credit market [12][13] - The rise of DATs is attributed to a supportive administration, fair value accounting, and Bitcoin's 50% annual growth rate [16][17][19] - Digital credit, offering yields of 600-800 basis points (6-8%) above risk-free rates, is seen as a compelling product powered by digital capital [22] Crypto Company IPOs & Regulatory Environment - The current administration's embrace of digital assets has facilitated crypto company IPOs, including Galaxy Digital, Circle, American Bitcoin, and Gemini [24][25] - Constructive legislation, such as the Genius Act legitimizing stablecoins, has opened the way for crypto exchanges to go public [25] - The industry seeks clarity on tokenizing securities and currencies, raising capital with crypto tokens, and engaging in decentralized finance, with expectations for resolution in the Clarity Act [41][42] Bitcoin vs Altcoins & Institutional Adoption - Bitcoin is positioned as digital capital competing with gold, real estate, and public equity, while stablecoins are digital currency competing with traditional credit card networks [34][35] - Institutional adoption of crypto is expected to continue progressively, driven by positive guidance from banking regulators and banks announcing plans to custody and hold Bitcoin [46][47] - Banks moving into offering credit on digital assets, especially Bitcoin, is seen as beneficial for both banks and Bitcoin, acknowledging the $2 trillion of unbanked wealth [45]