Hello, everyone, and good evening. I'm Shirish Jajodia, Corporate Treasurer and Head of Investor Relations at Strategy. I will be your moderator for Strategy's 2025 Third Quarter Earnings Webinar. We will start with the call with a 60-minutes presentation, starting first with Andrew Kang, followed by Phong Le and then Michael Saylor. This will be followed by a 30-minutes interactive Q&A session with four Wall Street equity analysts and four 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 earnings and our KPIs contained in this presentation. 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 discussed in our most recent quarterly report on Form 10-Q filed with the SEC on August 5, 2025, and our current report on Form 8-K filed with the SEC on October 6, 2025. We assume no obligation to update these forward-looking statements, which speak only as of today. With that, I will turn the call over to Andrew Kang, the CFO of Strategy.

Thank you, Shirish. And I'll start with some highlights for the quarter. We now hold 640,808 Bitcoin or over 3% of all Bitcoin ever to exist. This reinforces the scale and the dominance of our corporate Bitcoin treasury company. We have a market cap of $83 billion, which positions us among top publicly listed companies in the U.S. And we have four listed preferred securities in the market, STRF, STRK, STRD and STRC. With STRCs or Stretch being the largest U.S. IPO of 2025 so far, and all which continue to grow in liquidity and investor interest each and every day. We've also raised $19.8 billion in capital year-to-date to acquire more Bitcoin. And our capital markets platform continues to deepen in liquidity and investor interest, and we continue to show positive performance in our Bitcoin metrics, all central to generating long-term shareholder value. Moving on to EPS results. Turning to our Q3 2025 GAAP financial results. We reported $3.9 billion in operating income, $2.8 billion in net income and earnings of $8.43 per share. That's a transformative improvement year-over-year, reflecting a strong performance in Bitcoin, the fair value treatment we now have on our Bitcoin and disciplined capital raising activities. This marks our second consecutive quarter of significant positive GAAP earnings and over $8 billion in positive earnings in the last four quarters. Next slide. Our results for the first nine months of the year showed $12 billion in GAAP operating income, $8.6 billion in net income and earnings of $27.80 per share, continuing our record-breaking year of performance. Moving on to Bitcoin per share. Bitcoin per share, as we introduced last quarter, measures the accretion of Bitcoin on a per share basis by calculating the ratio between the company's Bitcoin holdings and assumed diluted shares outstanding here represented…

Thank you, Andrew. I will go through an update on our capital markets activity, and then I will review the guidance that we provided for 2025. So, first, I want to welcome and invite everybody to join us in four months in Las Vegas at the beautiful Wynn resort for Strategy World 2026 and our fifth annual Bitcoin for corporations. So hopefully, those who are listening or watching this presentation and have been a fan of strategy software or strategy and our Bitcoin strategy can come out and join us. So, next slide, Shirish. So taking a step back, we used to compare ourselves to other companies that have Bitcoin on their balance sheet. And as you know, with over 640,000 Bitcoin and nearly over 3.1% or nearly 3.1% of all the Bitcoin effort to be created in the world, we found it best to compare ourselves to the largest corporate treasuries in the world. You'll see here with $71 billion of Bitcoin on our balance sheet, we're fifth when comparing cash and short-term investments and excluding financial services companies. And our aspiration in the next year is to be #2 and the next 5 to 10 years to be #1. And so how do we do that? Next slide. What we've done in the past in the last two years is raise a significant amount of equity and capital through the capital markets. In 2024, we raised $22.6 million and about 27% of that or $6.2 million was from the convertible debt market. Year-to-date this year, we've raised $19.8 billion. And what you can see here is the way we've raised it has changed significantly. We've reduced our convertible debt raises to about 10%, and we've increased our raises through preferreds to $6 billion or about 30%. And that…

Thank you, Phong, and thanks for joining us today. I'm really excited to talk to you about digital capital and digital credit. So let's go to the first slide. The first point that I want to make is that Bitcoin has emerged as digital capital. What is digital capital? Digital gold. Capital is a long-term store of value, Bitcoin is a store of value. The U.S. government has embraced Bitcoin as a store of value, and that means every major cabinet member, and I'm showing them here. And of course, the decision that America is going to be the Bitcoin superpower is an endorsement along with the President's point that you don't ever sell your Bitcoin. Let's go to the next slide. Wall Street has embraced Bitcoin as digital capital. Now you've got 1.5 million Bitcoin held by the spot ETFs, about $170 billion worth. The most successful ETF in the history of Wall Street is IBIT. And IBIT has explosively grown even in the past few months. The daily liquidity in IBIT is now approaching $4 billion or more a day. Open interest in BE has gone to more than $50 billion in open interest. And so this is wildly successful. Next, public companies have embraced Bitcoin as digital capital. We were the first public holder of Bitcoin, then there were two, then there were four. About a year ago, there were 60. Now there are 200-plus publicly listed companies holding Bitcoin. That's more than 1 million Bitcoin, and it's about $116 billion in value. I've got a few metrics here on this slide that show just the scale of the Bitcoin market. It's a $2.3 trillion market cap. It's $58 billion of daily liquidity, $76 billion in BTC open interest in the derivatives market, and it's backed by…

Thank you, Michael. We are now going to proceed to the interactive live Q&A session of our webinar. I would like to invite all of our Q&A guests to come on video. And we look forward to hearing your questions. We'll go one at a time. I'll call your names and you can direct your question to the management team. For the first question, I would like to invite Andrew Harte, a research analyst from BTIG. Andrew?

Team, thanks for having me on. I appreciate all the details in the presentation as always. So a lot of our investor questions are focused on the company's ability to pay dividends, especially as the preferred equity strategy continues to grow. Can you just shed some additional color and light on plans to fund those dividends? And then if there was a period where the mNAV compressed or was even below 1x, how could that plan potentially change?

Yes, I can cover this one. And Andrew talked about this a little bit earlier. Right now, our dividends and interest on our convertible notes totaled $689 million annually. And our primary strategy when our mNAV is above 1x is to fund that through ATM issuances. And just to remind everybody, in the last 12 months, we've issued about $27 billion of equity, which means that, that's about the $650 million or so is about 2.6% of how much equity we've raised. So we clearly have the ability to raise equity to cover our dividend payments and our interest. The big question is what happens when it becomes dilutive to shareholders to issue equity and when we're below 1x NAV or if we go below 1x NAV, what would we do? And there are other things that we've explored and talked about. We would -- we could sell equity derivatives, we could sell Bitcoin derivatives, and we could sell high basis Bitcoin to cover our dividend needs for our preferreds. What's important when we do those things, and we've talked about it, is we want to preserve the ROC dividends on our preferreds. So we'd have to do them in ways that are avoid positive tax E&P right? We wouldn't do things like sell equity or Bitcoin derivatives that would cause our E&P to be above zero. We are able to sell high basis Bitcoin potentially at a loss and cause negative E&P and offset that with other Bitcoin that would cause positive E&P. We wouldn't sell the software business. I know there are questions about that because that would cause income and positive E&P. And so we want to preserve the ROC dividends, the preferable tax deferred treatment of our preferreds. So those are some of the things that we would do in that scenario. We don't anticipate that scenario, but we do have plans in place.

Thank you. For the next question, I'd like to invite [ Pierre Rochard ].

Thank you for organizing this, and thank you for the invitation. It was mentioned that there would be marketing and advertising around the preferreds. What do you anticipate that expense looking like? And what the return on investment would be for those efforts?

I can cover that. We're just starting to get into this. Actually, you just saw one of our advertisements for those who like money stretch, right? And so we'll start to experiment with paid advertising on platforms like an X or YouTube. I think whatever the expense is, it would be quite minimal compared to the increased inflows that we hope to drive into our preferreds, right? And I think we've gone through in the past, if we're able to raise an incremental $1 billion in a preferred, we immediately turn around buy Bitcoin, and that's immediately accretive to Bitcoin yield and Bitcoin per share. I don't expect we're going to spend a ton of money upfront. We'll experiment and see what are the right channels and what causes people to wake up and understand the Bitcoin credit machine that we have. And then in addition to just digital marketing, we're out meeting with investors, meeting with potential investors quite a bit now. And I think there's just an about a feet on the street between Mike, myself, Andrew, Shirish, CJ and the entire team.

Yes. I would just piggyback on that by saying, I just spent a lot of time in the Schwab studios and recording content to go on the Schwab network. I was in Vegas at Money 20/20. I was in Austin at a credit conference. I'll be in Naples, Palm Beach. I've got a big road show throughout the Middle East for 1.5 weeks coming up. So there's a lot of outreach. We get invited to speak at a lot of conferences. We also get invited to speak on television, right? So some of the better marketing channels is just go on Bloomberg, go on Fox, go on CNBC. And I think that the difference between what we're doing now and what we're doing a year ago is a year ago, people said, well, what is Bitcoin? Is it going away? And can you sell me on Bitcoin? Now we're beyond the Bitcoin going away. Everybody has embraced it as digital gold. Now when we go on Bloomberg or Fox or CNBC, we're saying, stretch, it's 10.5% dividends tax deferred. You might want to check it out. So we have it -- by the way, you know how I used to say it takes like 1,000 hours to understand Bitcoin or 100 hours to figure this out. It doesn't take that many hours to figure out that something that yields 10.5% tax deferred is better than your existing money market or bank account. So we've got simpler messages, and we're taking them to every channel. We will try TradFi. We don't think we can sell the Bitcoin message in 30 seconds to 70-year-old conservative traditional retirees. But we do think that we can sell Stretch in 15 seconds or 30 seconds to military retirees that want to live happy ever after. And we know this anecdotally because it's happening everywhere we go, everybody we talk to. It's the simplest product for us to explain. It's hard to sell convertible bonds. It's hard to sell 30-year crypto bonds. It's hard to sell Bitcoin to the rank and file, but everybody wants a bank account that pays 10% that you don't have to pay tax on. So we're going to work every possible marketing channel in order to get the word out. And the good news there is we're getting an avalanche of request to speak. Everybody wants to talk to us now, right? So just around the time that everybody wants to interview us, everybody wants to talk to us, we have the simplest message. You can put it in 30 seconds. And so it's a very exciting time for marketing.

Thank you, Pierre. For the next question, I'd like to invite Mark Palmer, our research analyst from Benchmark.

We have already seen the beginnings of consolidation within the digital asset treasury space. Is there a circumstance under which Strategy would step into the market as an acquirer of a Bitcoin treasury company that was trading at a materially lower mNAV in a transaction that would be, by definition, accretive as a means of accelerating its acquisition of Bitcoins.

I'll give my opinion, and then Phong can chime in. We've done 84 acquisitions of Bitcoin, and every one of them was homogeneous, transparent, and you could instantly calculate whether it's accretive or dilutive, and they were generally all accretive. And our focus is to do high-speed transparent digital transactions and sell digital credit and buy Bitcoin. And we think that it's a big advantage of the company that the business model is so transparent, predictable, clear. Because the business model is predictable, that makes it easy for the equity analysts to make their decisions. And it also makes it easy for the credit analysts to assess the credit quality. So, generally, we don't have any plans to pursue M&A activity, even if it would look to be potentially accretive. It might be, but there's just a lot of uncertainty, and these things tend to Stretch out six to nine months or a year. And an idea that looks good when you start might not still be a good idea six months later. And it can be very distracting for the management team while you're either integrating or pursuing those things. So our management team is laser-like focused on selling the four credit instruments that we have and then expanding the reach of our digital credit instruments internationally and, of course, improving the quality of our balance sheet, equitizing the convertible bonds. Those are all the things that we're very excited about. as an operating company, the great thing about operating company is, yes, you have the option sometime in the indefinite future to do something. And if you're walking down the street and there's $1 billion and you can bend over and pick it up for a nickel, you have the option to do it. And I don't think we would ever say we would never, never, never ever. But what we would say is the plan, the strategy, the focus is sell digital credit, improve the balance sheet, buy Bitcoin and communicate that to the credit and the equity investors. Phong, do you have anything to add on that?

No, I don't have anything to add. I would generally agree with what you said. We've been a software company for nearly 30 years or over 30 years and software technology M&A is very difficult. There's always something hiding behind what you actually think you purchase. And I think I would say that the same thing is about acquiring Bitcoin treasury companies.

Okay. And just one more question. With regard to your intention to tap international markets from a capital raising perspective, is the idea that you would effectively market the same four perpetual preferred instruments that you currently have, but just to different markets around the world? Or would you be designing new instruments that were specific to those geographies?

It will be the latter. We will design -- if we're going into Canada, we would design an instrument that's denominated in Canadian CAD, and we would offer it to Canadian investors on a Canadian exchange. So it will be a native product because if you're the investor there, you don't want to take currency risk. And if we go into Europe, we would create a euro-denominated instrument. So -- and we would offer something that represents everything we've learned from the first four credit instruments. If we could improve it, we would. But primarily, the Europeans want a euro currency instrument in Europe and every international investor does. What we've discovered is a lot of European investors, they can buy the American instruments. So if they wanted a U.S. dollar-based treasury credit instrument, they would buy stretch. And so they can already get to it. In fact, one of the more pleasant surprises I learned is we accumulated a ton of European and British investors in 2020 because they could buy MSTR and they couldn't buy Bitcoin. So our digital credit instruments are already global. If you want U.S. dollar credit instruments, then you're already buying them globally. We think the big unlock is that we can create a digital credit in any currency. We can take JPY risk or we can take euro. We can solve that problem. And there's people that will buy $1 billion of something if they don't have to take the currency risk and they'll buy nothing if they have to take the currency risk. So our job is to bridge that capital divide. And so when we do it, we'll do it with a native instrument and a native currency on a native exchange that is going to be presumably the most compelling credit instrument in that capital market that anybody has ever seen.

Thank you, Mark. For the next question, I would like to invite [ Natalie Brunell ].

Beyond Bitcoin price action, can you identify two or three very specific challenges that are serving as headwinds for the growth and performance of strategy and even the Bitcoin treasury industry more broadly? And what actions can be taken to overcome those?

I think Phong highlighted some of them in the discussion of S&P credit ratings issues, right? The fact that Bitcoin is not viewed as capital by the traditional credit ratings industry. So I think the view of Bitcoin as -- and the collateral value of Bitcoin and the traditional views under Basel rules under the rules that govern our banking system, our insurance companies and our credit rating agencies. I think that, that's a structural thing. Like when FASB didn't allow you to recognize gains, but they made you recognize losses, and you didn't -- you had indefinite intangible accounting. That was pretty crippling. I think that we fixed that, and I think that fixing capital risk rules will be a big one. I think the second is banking acceptance, custody and credit banks issuing credit on Bitcoin. So -- we're hearing rumors and we've heard that a number of major banks in the U.S. in the first half of 2026 will start to buy Bitcoin, sell Bitcoin, custody Bitcoin and issue credit and margin lines against the native Bitcoin asset. That will be great for them. That will be great for Bitcoin. That will be great for us. That will accelerate adoption. And so I would say neither of these are things that I would ask for government help for, like we don't need a law to fix it. What we do need to do is lobby the banks, lobby the insurance companies. Maybe I should replace that word with educate, educate the banks, educate the insurance companies, educate the credit rating agencies. And then finally, educate the traditional fixed income investor, the retiree and the corporate treasurer, educate them that there actually now is a better option. And so I think that's what we need to do in order to grow the industry right now, and that's going to be our focus over the next few years.

Thanks, Natalie. For the next question, I would like to invite Brian Dobson, research analyst from Clear Street.

Yes. So you received a credit rating, and I agree that, that's a very important first step to opening doors at pension funds and insurance companies. I know it's very early days, but are you already having conversations with those investors? And if so, what's the feedback? And then as a second part to that question, would you have the preferreds and converts rated separately? I mean I think a lot of investors will probably just infer instrument ratings from the general company rating. But what are your thoughts on that?

I can start on that, Brian. We had before we received a rating conversations with large institutions, insurance companies, pension funds that said that they could not easily without significant capital penalties invest in an unrated instrument and that they were quite interested in the structure of what we provided, but just couldn't do it. So that was why we went and pursued a rating with a major rating agency is one of the reasons. So I do think this opens up doors to some of the categories that you just mentioned before. And I think it's not going to be an avalanche like tomorrow, but as we go out and market and Mike has discussions and I and Andrew all go out in the market and we start talking to these folks, I think their thought process will certainly change over time.

Yes. And then I just wanted to follow up on an earlier question about selling into Asia and Europe. Both of those markets represent or have rather unique regulatory hurdles. I guess how far along are you in those markets?

We're pretty far along. You're right, but that's part of the reason why we need to create products that are very specific. What exchange, is it retail focused? Is it institutional focused? Is it regulated? Is it unregulated? What is the tax regime? Look, what we've done since the beginning of the year with preferreds is we went uphill against a market that wasn't familiar with the Bitcoin back perpetual preferred with a return of capital tax structure. And it took us nine months, and we were able to raise $6.5 billion or $6 billion, right? And because we did that, I think we've sort of cornered this market for a good period of time. I think our ability to go understand the regulatory structures, the tax structures, yes, it's harder than in the U.S. But once we've broken through that, that creates a competitive moat for us to be able to offer products that clearly are superior to what's out there. So we welcome the challenge, I guess, is what I'd say.

Thanks, Brian. For the next question, I would like to invite [ Adam Livingston ].

Congrats on the great quarter and the credit rating. The Japanese Bitcoin treasury company, Metaplanet, has recently announced a share buyback program with the intention of being able to strategically deploy buybacks at times that would increase Bitcoin per share for the equity holders. Would Strategy ever consider adopting a similar program as a means to increase Bitcoin exposure for shareholders if MSTR ever trades below a 1x mNAV?

Phong, do you want to start?

Yes, I'll start with that. I don't think there is anything that we wouldn't do that would create incremental Bitcoin yield that increases more Bitcoin per share for our shareholders and preserves our ROC dividends for our preferred holders, right? And so we have an open buyback authorization already. We've done it a long time ago. I think the last buyback we did was 2018 or so. It's not our primary strategy, but it's an option if we were to go down that path. Mike, do you want to add anything?

Yes. I would say we're open-minded toward a variety of options. Right now, our preference is to grow the capital base. But if it was compelling enough, we would look at it.

Thanks, Adam. We have two more questions to go. So for the next one, I will invite Lance Vitanza, our research analyst from TD Cowen?

The 30% BTC yield target for 2025, I'm surprised you maintained it given the recent decel in Bitcoin accumulation. And getting to 30% would seem to require you to raise at least another couple of billion dollars, and we only have 2 months left in the year. You're not going to get there on ATMs alone. Are you currently contemplating a big underwritten transaction perhaps in an overseas market? Is that sort of how you get to the 30%?

Yes. We need to raise roughly $2 billion in a non-dilutive fashion to -- of capital. And you've seen us do that at quick pace in a short period of time. We have two months left to go. And so we'll be racing and we'll see what we can accomplish, right? We're always working, always trying new things, developing new things and this credit factory that Mike talks about, we're very bullish on. Obviously, we can't say exactly what we're going to do when. But it's two good months, 60 days, right before the holidays.

Great. And for the last question, I will invite Ben Werkman from Strive.

Over the last 12 months, strategy has been extremely successful at building the capital base and expanding the balance sheet using primarily equity in the IPOs from the preferred markets. And over that 12 months, you saw MSTR underperform Bitcoin in a fairly significant manner. Do you guys view the strategic priorities moving forward as focusing more on increasing amplification and less on expanding the balance sheet? And how has this past year informed your go-forward strategy and how you might prioritize the prefs over the common equity moving forward?

Yes, that's an open-ended question. So I'll start, and then Phong or Andrew may have something to add. Clearly, with equity, I would say, if you're going to own Bitcoin you a four-year or longer time horizon, if you're going to own amplified Bitcoin, a company that aims to be more volatile than Bitcoin, you can't have a lower time horizon. So you probably need a longer time horizon. So we manage the company such that we think 10 years from now, we're going to create an insane amount of shareholder value. And that doesn't mean we're looking for 10-year payoff. We're generally thinking if it doesn't return what we expected within four years, we'd be very disappointed. But we never do anything where we demand to get the payback in four months. And so we don't have a four-month time horizon or even a year time horizon. And we think that generally, I would say, if your time horizon is 12 weeks, you should own the STRC, right? You really should go to the short end of the risk curve and the short end of the duration curve because that one we're trying to strip volatility away. And if your time horizon is 10 years, and if you are a Bitcoin Maxi, then maybe you like the equity or you like Bitcoin. The credit instruments, I would say, if we wanted to raise the maximum amount of capital then we could do two things that we don't do. One thing we could do is we could just open up the ATM and we could sell stock at any mNAV, any week all the time. And what you've seen is we don't do that. After the red sweep, when there was a massive enthusiasm, we would sell $1 billion or…

Excellent. So this concludes the Q&A portion of the webinar. I would like to thank all of our analysts for their questions and all the attendees for tuning in live. We had over 25,000 people across YouTube, X live stream and the Zoom webinar. So thank you all for joining in. And I will now turn the call over to Phong for the closing remarks.

I also want to thank the analysts for joining us and being on video and asking questions. I want to thank everybody who watched us our earnings call and all of our supporters and all of our shareholders out there. And I invite you all to join us in Las Vegas, February 23 to 26 at the Wynn resort. And for everybody else, have a great holiday season, and we'll see you in three months at our next earnings call. Thank you.