Strategy (MSTR) Status Update summary

Bitcoin Holdings and Updated Guidance

• Increased Bitcoin holdings to 650,000 BTC, equating to a $59 billion net asset value.

• Updated FY2025 guidance assumes a year-end bitcoin price range of $85,000–$110,000, down from $150,000, reflecting recent market volatility.

• BTC yield percentage expected to end the year between 22% and 26%, below the original 30% target.

• BTC dollar gain now projected at $8.4–$12.8 billion, down from the $20 billion target.

• GAAP earnings and income are highly sensitive to year-end Bitcoin price, with positive results above $94,000.

Capital Structure and USD Reserve

• Enterprise value stands at $68 billion, with a BTC reserve of $59 billion and a 1.2x MNAV ratio.

• Convertible debt totals $8.2 billion and preferred equity $7.8 billion, resulting in a conservative 22–23% loan-to-value.

• A $1.44 billion USD reserve has been established to support dividend and interest payments, currently covering 21 months with a goal to reach 24 months.

• The reserve is funded by class A common stock sales and will be adjusted at management's discretion based on market and liquidity needs.

• Recent equity issuance was accretive, selling above 1x MNAV.

Digital Credit Model and Risk Management

• Digital credit model shows BTC rating of 3.7, with credit spreads much lower than market rates.

• USD reserve reduces credit risk and allows dynamic management of dividend obligations.

• Can fund dividends through equity, Bitcoin sales, or derivatives, depending on market conditions.

• Bitcoin appreciation above 10.3% annually makes digital credit instruments profitable for shareholders.

• Even with Bitcoin price declines, robust reserves and flexible funding options provide long-term stability.