Strategy (MSTR) investor relations material

Strategic priorities and capital allocation

• Focus remains on building a robust digital credit business, particularly stabilizing and growing STRC, as the foundation for long-term equity value.

• Equity buybacks or dividends are deprioritized in favor of reinvesting capital to strengthen credit instruments and increase Bitcoin per share.

• Management views issuing equity above NAV to buy Bitcoin or repurchase STRC at a discount as accretive to shareholders.

• Large cash and BTC reserves are maintained to provide flexibility for opportunistic actions, including buybacks or acquisitions during market downturns.

• The company is not pursuing diversification into cash-flowing businesses, maintaining a laser focus on digital credit and Bitcoin capital markets.

Digital credit market development

• STRC is positioned as a flagship digital credit instrument, with efforts to keep its price tightly around par to maximize liquidity and investor confidence.

• Institutional adoption of STRC is rising, now representing 30% of holders, with retail also growing; institutions are seen as stabilizing forces.

• Lessons from recent STRC volatility include the need for substantial USD liquidity and dynamic reserve management to backstop dividends and stabilize credit.

• The company is committed to buying or selling STRC and BTC as needed to maintain stability and fulfill its credit obligations.

• No plans to move preferreds to daily dividends; focus remains on credit quality and balance sheet strength.

Equity and shareholder considerations

• Equity holders are advised to have a long-term horizon (4–10 years), as MSTR provides amplified exposure to Bitcoin's price movements.

• Paying dividends from equity is seen as undermining long-term value; reinvestment in credit and Bitcoin is prioritized.

• Buybacks of MSTR may occur if shares trade at a significant discount to NAV, but current focus is on credit health.

• All capital allocation decisions are evaluated for their accretive impact on Bitcoin per share and overall shareholder value.