Hello, enveryone, and good evening. I am Shirish Jajodia, Corporate Treasurer and Head of Investor Relations at Strategy. I will be your moderator for Strategy's 2025 Second Quarter Earnings Webinar. Today marks a historic day for Strategy and all our investors. We believe this deserves an exciting brand-new format of our earnings call in line with our mission to digitally transform Investor Relations and be the most transparent company in the world. We will start the call with 60-minute presentation approximately. This time, we have shuffled the order of the presenters. Andrew Kang will begin first, followed by Michael Saylor and then Phong Le. This will be followed by a 30-minute interactive Q&A session with our 4 Wall Street equity analysts and 4 Bitcoin analysts. Before we proceed, I will read the safe harbor statement. Some of the information we provide in this presentation regarding our future expectations, plans, guidance and prospects may constitute forward-looking statements, including, without limitation, our guidance with respect to 2025 operating income, net income, earnings per share, BTC Yield and BTC $ Gain and the hypothetical valuation models contained in this presentation. Actual results may differ materially from these forward-looking statements due to various important factors, including the risk factors discussed in our most recent quarterly report on Form 10-Q filed with the SEC on May 5, 2025, and our current report on Form 8-K filed with the SEC on July 7, 2025. And in the case of our guidance with respect to 2025 operating income, net income, earnings per share, BTC Yield and BTC $ Gain and the hypothetical valuation models contained in this presentation, each of which is based on assumed Bitcoin price at the end of the year, the risk that the price of Bitcoin as of such date may be substantially different than assumed target price. This could cause our actual results to vary substantially from such guidance and the hypothetical values generated by such models. So we assume no obligation to update these forward-looking statements, which speak only as of today. Also in this presentation, we refer to certain non-GAAP financial measures. Reconciliations are available in our earnings release and the appendix of this presentation, which was issued today and available on our website. With that, I will turn the call over to Andrew Kang, CFO of Strategy.

Thank you, Shirish. And I'd like to welcome everyone to today's webinar, and thank you for joining what I think will be one of the most important quarterly earnings calls in the history of our company. I'll start with some key highlights from Q2 and year-to-date. Through July 29, our Bitcoin holdings were 628,791, which now accounts for 3% of all Bitcoin ever to be in existence and positions us as the most dominant player in the Bitcoin Treasury Company space. Our market cap has eclipsed over $112 billion, making Strategy the 96th largest public company in the U.S. And as part of our expanding and innovative capital markets plan this year, so far, we've launched 4 listed preferred equity offerings, STRF, STRK, STRD and STRC, with STRC representing the largest IPO in the U.S. so far this year. And finally, we raised an impressive $18.3 billion in capital year-to-date, which already accounts for 81% of the total capital we raised in all of last year combined. And we accomplished that in just 7 months. So in addition to expanding the depth of Bitcoin-backed credit instruments to the market, we are raising capital more quickly and more efficiently than we have ever before. Now moving on to our EPS results. Q2 '25 stands out as a transformational quarter for Strategy driven by 2 major factors: the substantial appreciation in Bitcoin price between the end of Q1 and Q2 in conjunction with the adoption of FASB's fair value accounting rule at the beginning of this year. We achieved a record $14 billion in GAAP operating income and $10 billion in net income, reflecting a fully diluted EPS of $32.60 per share for the quarter, the highest in the company's history and what may be among the highest of all S&P 500…

Thank you, Andrew. And I want to thank everybody for being with me today. So I thought I'd start with a macro-overview of the Bitcoin universe. And the first thing that I'll note is we have a very supportive White House and that started with the establishment of the Bitcoin strategic reserve, but it continues across the board. Next, as you can see, we have 12 cabinet members in this administration that are all pro Bitcoin. A year ago, we had 1 cabinet member who was neutral and 11 that were indifferent or uninterested and certainly not supportive. So this is a major change in the political landscape. Yesterday, the White House released Crypto Policy Report. It's about 150 pages long. I did a scan. I'm sure some of you have done a scan. The takeaway is that this administration is going to be very enthusiastic and in support of the entire crypto industry and the Bitcoin ecosystem. And in particular, some of the things they're doing include work in the area of taxation to cure unfair tax treatments of digital assets and that includes relief or de minimis digital asset transfers like de minimis Bitcoin payments. And it also includes guidance that digital assets should not be included when calculating CAMT unrealized capital gains taxes or when calculating CAMT minimum taxes. And so we have the support of the administration on this, and that was made very precise in writing just yesterday, and this is an excerpt of it. I think this is just very positive for the entire crypto industry and very positive for Bitcoin. And of course, it's very positive for the hundreds of companies that are starting to put crypto assets on their balance sheet. Wall Street has embraced Bitcoin. We've now got 80 ETFs launched,…

Thank you, Michael. I am excited to talk about 4 things today: one, our capital plan; two, I'll go through our guidance for 2025. Three, I'll talk about comparables to MSTR and using that comparables, four, I'll talk through how you should think about valuing MSTR going forward. I'll start with our capital plan. As Mike mentioned, our goal is to take Bitcoin, to wrap it in Strategy securities and provide it to the largest possible capital base in the world, to folks who are interested in equities, folks who are interested in debt, the largest addressable market and do it with premium returns and premium yields. And so to do so, a few things I'll point out about this slide here. One is our converts represent a fairly small addressable market of $500 billion, compared to our preferreds, which represent markets of $90 trillion, $40 trillion, $2 trillion, $30 trillion. And so if you think about how we should address our capital structure going forward, I want to share what the midterm looks like. Mike talked about what would our BTC ratings in our credit profile, look, if we didn't have convertible bonds in our structure. And that's our plan going forward. in about 3 years, we'll be able to equitize and retire some of our convertible bonds. And what remains at the top of our capital structure, our Strife and Stretch, which we plan to have a BTC rating of 10x plus over time. And that means that there'll be investment-grade equivalents. Strike will have a BTC rating of 6x-plus, which means there's a mezzanine equivalent and Stride, a BTC rating at 3x plus, which means it's a high-yield equivalent. And if you think about it, we'll have a preferred structure, a stack of preferreds starting with 4…

Thank you, Phong. We are now going to proceed to the interactive live Q&A section of our webinar. I would invite all of our analysts to come on video now. And we look forward to hearing your questions. We'll go one at a time. I will call your names and then you can direct your questions to the management team. First, we will begin with Lance Vitanza, our research analyst from TD Bank.

Let me see if I can get 2 and if I can. The first is, at some point, does concentration of Bitcoin holdings at a single corporation impede adoption of Bitcoin as a store of value, let alone other potential monetary functions, such as medium of exchange or unit of account? And if so, when might that point realistically come for Strategy? Is that 5 years out? Is it 10 years out? Is it longer? Is it shorter? Or is it just the wrong question?

I'm sure everybody's got an opinion, but I'll start. I think we're accelerating institutional adoption, but we're also accelerating the adoption of Bitcoin just like BlackRock is accelerating adoption of Bitcoin because we're channeling new forms of capital into the ecosystem. And you couldn't -- there's whole sets of capital that wouldn't come into the ecosystem if they don't have an investment- grade, creditworthy counterparty to trade with. So we don't really think there's any number. It's -- we're up to 3% of the system. I mean it's getting exponentially harder I've said before -- it feels to me like if we get to 5%, Bitcoin is going to be $1 million a coin, and if we get to 7.5%, it's going to be $10 million a coin or some ridiculous amount. If it does get to $10 million a coin, and if we do get to 7.5%, that will mean that 93% of all the Bitcoin is held by somebody else somewhere and that will cause an explosion of innovation in the rest of the world. For all we know, right, the harder we try to acquire it, the more it will decentralize to other places because you're going to see an explosion of other innovation because everybody else that's not BlackRock or not us or not whatever is going to have all this Bitcoin that's valued at millions and millions of dollars of coin.

And then just as a follow-up, and Phong, you touched on this. You've been actively encouraging other public companies to follow in Strategy's footsteps and create their own Bitcoin treasury models. Are you worried that you may have been too successful in making that pitch? And at what point does the plethora of public Bitcoin Treasury Companies or PBTCs as I like to call them, at what point does that become a problem for you either in terms of access to capital or potential for bad actors, et cetera?

I can start. I don't think we get to that point. I think the positive of more Bitcoin Treasury Companies is creating knowledge. As you can see, we're quite understood. And so the more companies there are, the more analysts will cover them, the more retail investors will get involved, the more institutional investors will get involved, the more large banks. And the more there is just knowledge about, for example, how to value a Bitcoin Treasury company. And I think we're pretty far from understanding that. Second piece, if they're all buying Bitcoin, Bitcoin price is going to go up, which causes our Bitcoin net asset value to go up, which caused our equity to go up, which caused our ability to raise more capital. I don't think we're even close to a place where this capital markets and the credit markets for Bitcoin are saturated. I think we're in the first inning of a 9-inning game. And I think more and more access will occur. And I think they're all getting started. Look, a lot of these Bitcoin Treasury Companies are markets that would be very difficult for us to access. Bitcoin Treasury Company in India, Bitcoin Treasury Company in Sweden and Brazil. So I think they're all additive. They're all accretive right now. And I think they all have their own niche strategy and look, they're not really close to us in size, right? The place at which they can issue innovative preferred securities might be 2, 3, 4, 5 years out. So even if they did, it's going to take a while. But I think they're great.

And I would say we're not -- the Bitcoin companies aren't competing with each other. We're competing against 20th century credit instruments for the part. If you think about the fundamentals. You're competing against corporate bonds and preferred stocks, illiquid bonds, illiquid preferred stocks, illiquid credit that is generating normally a 400, 500 basis point yield. And all these BTC companies are in a position to create digital credit that generates 400 basis points more than the risk-free rate in all their own markets. And that's 100 trillion -- hundreds of trillions of dollars. So the real competition is between the credit instruments that come out of the BTC ecosystem versus the credit instruments that are backed by real or yen or euros or rubles or naira or dollars or whatever the other source of credit is. So that's another way of saying we're all very cooperative. It's -- the more of us there are, the more of those capital markets we can provide a digital solution to. And then the other point, coming back to your first question is, if you want to sell $100 billion worth of investment-grade credit to insurance companies or pension funds that are conservative in the United States, you're going to need a big Bitcoin Treasury Company to do it. And if you want to sell an equivalent type of credit in Germany, you're going to need a German operation or a Japanese operation to do it in Tokyo. So what's really happening is the digital transformation of credit-type assets. They were either backed by some currency derivative or some kind of -- what backs a junk bond like the effort of a struggling company is what backs a junk bond. And we're replacing that with something better and different and so companies at all scales are needed. You need a monster Bitcoin Treasury Company in Japan. You need a big one in France, a big one in Germany. But there's always going to be home court advantages and national champions. And the way that we all cooperate is we're all competing for the same 450 Bitcoin a day. And once you bought the 450 Bitcoin, the price of Bitcoin has got to move up, increasing the collateral value of everyone in the ecosystem. And as the collateral value increases -- and the other thing we're doing is we're dampening the volatility. As we increase the collateral value and damp the volatility, the BTC risk numbers plunge the leverage increases. And you can imagine, you can create a lot more of this BTC-backed credit, which is just a very positive feedback loop. And so we're in a virtuous competition or a virtuous cooperative cycle with any company that's capitalized on a Bitcoin standard anywhere in the world.

Thank you, Lance. Next, I will invite Lyn Alden. Lyn Alden So Strategy navigated the 2022 bear market successfully. And so my question is going to relate to stress testing as it relates to these midterm BTC ratings. Given the strategies credit products are backed more by assets and capital access than operating cash flows, are there certain Bitcoin bear market assumptions or thresholds, either such as in terms of drawdown magnitudes or lengths of time where capital markets might become inconducive for new capital issuance that you're planning for as you design these forward leverage ratios and for your overall capital structure?

I think that if we equitize the convertible bonds and we go to all preferreds, you can imagine, for example, you have $100 billion of bitcoin, you have $50 billion of preferred in an extreme -- like the extreme case, a 50% leverage case. And if that $50 billion was a debt liability coming due in 3 years, that would be a lot of risk. And if it was a debt liability coming due in 25 years, it would be less risk, but it would still be something. But if it's actually equity, if it's $50 billion preferred equity, it never comes due, and so now you have a different kind of risk. In that particular case, Bitcoin can draw down 80% and you're fine. It can draw down 90%. So I actually think -- if you look at our structure, as we migrate to preferreds, we end up with this very, very robust antifragile capital structure where the principal never comes due, and then you have to ask the question, well, where is the liability? And the liability is in the dividend. And you noticed when Andrew showed the liabilities. He showed you 3 tranches. He showed you the interest liability, the cumulative liabilities and the noncumulative liabilities. That's because the interest has got to be paid or you're in default. The cumulative doesn't have to be paid. But if you don't -- if you suspend it, it accumulates, so it's still a liability to. And then the noncumulative, you could suspend it, and it isn't a liability. So when you add all that up, you imagine that you've got $50 billion and you have -- even if you had a 10% dividend, that means you're down to $5 billion. So on $100 billion of assets, you've got $5…

I can add. Lyn, we've had the benefit of being a Bitcoin Treasury Company for 5 years. We went through a crypto winter in 2022 with a much more fragile debt structure and capital structure. We had a Silvergate margin loan that was Bitcoin backed. We had a secured note that had onerous causes. And so we learned a lot from that. And at that point in time, our most pristine debt were our convertible amounts. And now I think we're much more prepared for a Bitcoin drawdown because over time, we won't have -- we already don't have secured notes. We don't have a margin loan. Over time, we may not have convertible notes. And to Mike's point, we will be relying on perpetual preferred notes that don't ever come due. So I think we learned a lot during this period of time, and we hope to share that with everybody out there.

And of course, the point is we did survive the 80% drawdown with a much weaker capital structure. So this capital structure is bulletproof compared to that one. So I think we're good to 90%. And if it goes below 90%, then we'll shuffle a few things around. It will be colorful.

Great. Thank you. Next, I'll invite Samson Mow. Samson Mow First, just a quick comment. 0.15 by end of year is very conservative. But I think you have to use what the analysts are providing. But my question is the preferred shares, they have a BTC/credit rating ranging somewhere between 3 to 9 or 5 to 9. How effective are those preferred at generating yield assuming we have periods of crab market? Like it seems after a 1.25x increase in Bitcoin price, you might have to wait time before you buy again? And in what conditions would you increase that or relax it a bit to go above 9 or above 10?

One of the interesting things is, right now, you can see from all of our credit models, the credit is all undervalued. Like the marketplace doesn't appreciate the credit very much. So over the next 36 months, you would think that the drivers of our credit strategy will be education of the market, just getting out and talking to people and educating them on our credit models is a big plus. The more -- every time we do an IPO, you've noticed the first IPO was a little bit smaller than this -- or more difficult than the second. The second was easier. The third was double that. The fourth was more than double that. So every time we go back to the market, we educate more people, we're educating credit rating agencies. And as the world's view of Bitcoin as collateral evolves, that makes it easier. So as a general trend, the direction of travel is the world is getting more comfortable with Bitcoin-backed credit, and that makes our strategy easier. Let's assume the Bitcoin chops sideways. The negative is that the collateral value doesn't go up. But the positive is, if you actually look at the trailing 30-day BTC vol, it's low. It was like 20 the other day. So when the market chops sideways, the volatility of Bitcoin falls. And you can see one of the most important drivers in Black- Scholes and the important driver in our risk models is volatility. So we're kind of winning when Bitcoin is surging up because we've got a lot of collateral and a high BTC rating. But we're also winning. You'll be -- if you go and you play with our model and you crank vol from 40 to 35 to 30 and I just showed you an example,…

Heads you win, tails you win.

I think it's -- the important point is when Bitcoin is highly volatile, it's very good for our equity. And when Bitcoin -- people go, "Aha, what happens when Bitcoin is not volatile." And what they don't realize is if you take that credit model I showed you and you crank in 20 vol and all of a sudden, we fall to 20 or 25 vol, you can go to 90% leverage. Because the credit looks like investment grade at 90% leverage. Bearing in mind, by the way, that banks that are issuing preferred stocks we compete against, they're 20x levered, right? They have $20 of a liability for every dollar of equity and they're paying 5% or 6% yield, and we're offering 9% and we're not. So really, this all comes down to educating the 20th century market about why this Bitcoin-backed credit is better. And that's a fundamental thing that overwhelms, I think the near-term volatility or lack of volatility or price change in BTC itself.

Next, I'll invite Brian Dobson, our research analyst from Clear Street?

So the Trump administration has made some very positive regulatory changes for Bitcoin. If you had your way, taking a big picture view, what would be the next area of improvement for regulators?

Yes. My opinion is it would be beneficial to the market if they nail down the digital assets taxonomy, under what circumstances can you tokenize a security? What's a digital security? If they can clarify a digital commodity, what's an asset without an issuer versus a digital token. If they could clarify token asset class dynamics, what can I create a token? And is it less than a security and different than a commodity. I think there's a lot of murkiness around all that. And they're supposed to be dealing with the Clarity Act in September. I think that will create a very rich framework for the entire crypto industry. And I think absent that, there's going to be a lot of confusion about the difference between tokens and commodities and securities and who can issue what and how long it takes and in the ideal world, 40 million business will be able to issue a token in 4 hours for $40. And in the current world, it takes you a year to issue a public security, minimal, maybe 2 or 3 years and $40 million, and we might end up in a world where we're halfway -- half in the middle, which is, oh, yes, it only takes 6 months, and it only takes $2 million to create a quasi half, not security, on the way to being a crypto commodity, but not really for the next 2 years. And if that's the case, you won't have really achieved the full potential of the industry. And so I think that we've still got a lot of uncertainty around that, that needs to be resolved.

Yes. Great. And then just as a quick follow-up. You've had some very successful offerings this year. Could you share any kind of feedback that you've gotten from the buy side regarding those offerings? And what kind of securities could we see the firm offering in the future in addition to the ones already on offer?

Phong or Andrew or Shirish, you guys want to start?

I would -- I can jump in there. I would say that we launched our first perpetual preferred early this year. And there was a lot of I would say, analysis and price discovery and just trying to get an understanding of that innovative instrument. I think ever since then, we've shown a track record of growing demand on every subsequent IPO. We've seen institutional demand increase deal over deal. We've seen retail demand increase transaction over transaction. We've also seen high net worth individual demand. And so I think what we're doing is we're providing opportunities to different aspects of the market that haven't existed before. And I expect that there will be more interest. STRC just recently got listed on NASDAQ. I think it's the most innovative treasury -- Bitcoin treasury security out there. I think we'll start to see more retail demand, more institutional demand. So I would expect that those existing securities will continue to season and mature and grow. And as for other types of opportunities, other offerings, I think we continue to focus on this preferred equity segment. We have opportunities to take our existing type structures and deploy them internationally. That's something we've talked about in the past, the different markets and different currencies. And then we sort of -- we're building out a bit of a Bitcoin treasury yield curve. And right now, we've got long duration. We've got short duration and as everyone knows, there's maturities everywhere in between. So I think we have a lot of opportunity to grow and potentially explore new areas as well.

Thank you. Next, I'll invite Preston Pysh.

Congrats on the amazing results. I think you guys are at a really monumental point right now, especially considering you guys have been exercising the Strategy since 2020. The performance has been in excess of that of NVIDIA and you've become of a size that it's near impossible for people on Wall Street to really kind of ignore where you're at right now and what you're doing. And if I was just going to try to like capture what that is, it's your arbitraging the difference between Bitcoin's annualized return of, call it, 45% versus the 10% that you're paying out in the preferred market for a 35% delta. Michael, you just mentioned that one of your biggest challenges is the education side with institutional investors. And I think from the outsider's perspective, they're looking at what you're doing and they're looking at all this preferred issuance and they're saying, Oh my God, there's so much perpetual drag that's going to be on this company that's going to bog it down. And if Bitcoin goes down 50%, it's going to have all these types of issues, which, by the math, is just not true. But how are you -- what are the steps that you're taking to kind of overcome this education burden that continues to persist and continues to be a problem in the Bitcoin space, in general? Yes, that's all I got.

Phong, do you want to start on that one?

Yes. I'll start with -- Andrew mentioned, in January of this year, we started working on Strike, and we had to educate every investment banker and every convertible note banker and every preferred banker and it was like a knock-down, drag-out 2-month process, all of our accountants, all of our attorneys. And then we issued Stretch, 6 months later in about 2 weeks, and everybody gets it. And that's the process. That's the process to educate people, and we're going to go out there. Mike is very well known for all the podcast he does, right? I'm becoming more public. All of you are doing an amazing job out there. It's a process. But the more people figure out, the faster it goes. And most -- like we're selling preferreds to lot of people who've never even heard of a preferred right? And we sold almost $600 million of preferreds to retail investors who just see a 9% dividend yield, twice as much as what a money market gives you 10x over -- more than 10x overcollateralized and they're like, oh, it's overnight money. So I'm going to take the money that I was going to use to send my kids to college 6 months from now or whatever it is, I'm going to put it in there, sit it there, get 10% and then use it 6 months from now. I mean, innovative products will start to sell themselves, but I think there's a market out there and it's the stuff that Jeff and True North and everybody is doing. This is how the word gets out, is viral. That's why we're doing this Investor Relations digitally transforming Investor Relations. That's why we have you all here. People will learn. The great thing is good products, great products. It's not much different than the iPhone, right? A great product when someone first looks at, I may not realize how great it is. Two months later, it sells itself by word of mouth. And I think people will get educated and bankers are making fees. We're the largest IPO this year. Guess who makes money off of IPOs? Bankers. Guess what bankers like? Making money. So they figure this out pretty quickly, right? So I do think the market will figure this out. And I think it starts with us, it starts with you. It becomes the banking community, the retail community.

I think if I could add to that, yes, I think the product is important. To Phong's point, it's not just we're selling preferred stocks to people that never heard of a preferred. We're selling a Bitcoin-backed preferred to people that have never heard of Bitcoin, that don't even know what Bitcoin is. And we're even selling it to people that are afraid of Bitcoin. So -- but if you walk down the street and you say, would you like a high-yield bank account that pays double what your bank is currently paying? The answer is going to be 99%. Yes. The only question is, do I trust you, right? Do I like you? The car flies, it's an electro hover car and it flies, do you want one? Well, if my neighbor's got one and it looks safe, then of course, I want one. So what we found is the key is to package the product. And then we've got to build the distribution channel with the banks, and then we've got to build digital education. So you can't knock on doors, you got to actually upload content. So we've taken to -- now we upload video content directly to hundreds of thousands of people which is another thing. And conferences, right? These Bitcoin Treasury Company conferences, one part of education is helping companies become Bitcoin Treasury Companies and figure out what it means to capitalize on Bitcoin and how to issue BTC-backed credit. Another marketing strategy and education strategy, Preston, would be outreach to the credit rating agencies and the creation of credit models. And what I just covered here in my voluminous comments, which took too long was I talked about an equity model, right? I laid out an equity model. What is -- how do you…

You should go on Preston's Pod.

Thank you, Preston. Next, I'll invite Mark Palmer from Benchmark.

One of the really attractive elements of Bitcoin is the fact that it is trustless that you can look at the Bitcoin blockchain and know what transactions had occurred on it. Along those lines, we have seen at least 1 company move toward proof of reserves as part of their Bitcoin treasury strategy. Insofar as you're looking to get incremental trust from investors as you build out your capital strategy, would proof of reserves be an element that would make sense for the company at this point?

Phong, do you want to take that?

No, I think you can take this one, Mike.

Okay. We're studying it, and we're working on responsible ways that we can provide that transparency, and we're considering it in the context of our audits and our own security issues and controls and the scale of our operation. We just had a famous example of a concern, which is 80,000 Bitcoin got transferred to Galaxy, who then sold them and everybody in the world knew that the Bitcoin was moving and they knew where it went to and they knew who was dealing with it and they knew when it happened, and it created a massive dislocation in the market, like $3,000, $4,000 dislocation and people lost their minds. We would like to not be in a situation where a routine custody reshuffling creates the same degree of chaos and dislocation because when you're a large multinational, you do a lot of stuff for a lot of different reasons. And if everybody on Twitter is or an X is obsessing over every time something moves from wallet A to wallet B for any particular reason, it could be, let's say, counterproductive. So as we would always point out, you can't really hold the security unless you trust the auditor, trust the management team, trust the Board of Directors and trust the processes and then the auditor's job is to audit the assets and the liabilities and then make sure that there are no side agreements, no related party transactions and nothing else we would undermine the integrity of that audit. So that's a much higher degree of transparency in the capital markets than simply publishing a single-wallet address. So I think that at some point, if we can find a way to do it in a way that doesn't introduce other operational security issues, we're open to it. It's just -- it's a complicated thing that we need to consider very carefully.

Sorry, I was going to add. I do get the irony of people wanting to access Bitcoin for a decentralized, transparent nature and then buying Bitcoin-backed securities through a U.S. public company. But what we do and what we provide on top of Bitcoin, and we laid out is with MSTR we provide superior performance through intelligent leverage. With our preferreds, we provide the ability to get pretty good dividend yields with a lot of downside protection. And part of the price of that is you're working with a U.S. public company that has Bitcoin behind it. And we have 15 people working on this. Could you imagine if we had to take 2 away to work on proof of reserves, you wouldn't get Stretch. You wouldn't get Stride, you wouldn't get Strike, you wouldn't get all this other product innovation. That's where we're focusing our energy right now. But it's not lost on us that we could find ways to do something to improve the transparency. That's why we do these earnings calls. That's why we do all these conferences, right? We do want to be a transparent company. That's very important to Bitcoin. And maybe we can get to a way we can do -- provide proof of reserves without exerting a ton of energy and without creating a security risk for the company and for ourselves.

I was just going to add, we've been a public company for 27 years. Our internal controls process is robust. We have 2 big audit firms that we interact with. So if you want to think about who other people use, we have 2 of the big 4 that look at our information and our data and our tie outs on a quarterly and annual basis. So while they might not be out there publicly, I think you take into account what Michael and Phong said. We are one of the longest-standing public companies out there, and we rely on our mature internal controls process internally as well as our external big 4 audit firms.

Great. Jeff Walton, you're up next. We saved you for the last. Jeff Walton Great. Everybody could ask all the questions before I went. That's perfect. Thanks for having me. Honored to be here. And my question is very similar to Lyn's, but a little bit different framework. Given that Bitcoin and MSTR volatility is near multiyear lows and Strategy has historically targeted a 20% to 30% leverage ratio during the convertible bond era. How does Strategy team now think about future volatility leverage? And do you anticipate revisiting your leverage framework, reflecting the difference in preferred leverage characteristics and understanding the goal of retiring the convertible bond dated liabilities?

What I would say is 20% to 30% leverage is appropriate if you have a mix of bonds or mostly bonds on your balance sheet. But if you eliminate the bonds, which come due for cash, if they're not in the money, and you replace them with a preferred equity, then clearly, it's reasonable to go beyond 20% to 30% and you could look at 30% to 50%. We don't -- I don't think it's appropriate to say we've changed the target range now because we still have $8.3 billion of convertible bonds. But what I think is, over time, as we go to a preferred credit strategy, then the world opens up, and we can take on more leverage and the amount of leverage we can take on will be a function of the credit instruments. If we go to pure -- for example, if you were a noncumulative credit, you could even take more leverage than cumulative credit, right. So the nature of the credit instrument will determine that. And then the volatility of Bitcoin will also determine that if you're at 50 vol, you have a different view towards what that should be versus a 30 vol. So I think those will be part of our calculus each year for the next 10 years, and we will evolve. I don't know if we'll evolve quarter-by-quarter, but we'll probably evolve year-by-year, and we generally do. And as for the volatility in the stock, I think the volatility is going to come back. We're going to see a lot more performance and volatility in the MSTR stock for a couple of reasons. One, the equity guidance we gave, if we take a more programmatic disciplined view toward using the MSTR ATM, then I think there'll be more volatile in…

Torque adjusted.

Fully torque Bitcoin. Do we have any other questions?

Excellent. So thank you, everyone, for staying with us for more than 2 hours. This was awesome. This concludes the Q&A portion of our webinar. I would like to thank all of our analysts for their questions and the audience for staying with us. We had thousands of people watch it live and join us on different mediums. I would now like to turn the call over to Phong for the final closing remarks.

Thanks, Shirish. Thanks, Mike. Thanks to Andrew. Thanks to all the analysts that joined us. Thanks to Bitcoin Magazine and Bitcoin for Corporations for cohosting this event. Thanks to the tens of thousands of people that watched us and your enthusiasm for Bitcoin and for Strategy and for enterprise software strategy. We wish everybody a good quarter and look forward to seeing you all again in 12 months, if not sooner. Thanks, everyone. Have a good evening.