Strategy Inc

Hello, everyone, and good evening. I'm Shareesh Jajodia, Corporate Treasurer and Head of Investor Relations at Strategy. I will be your moderator for Strategy's 2025 First Quarter Earnings Webinar. Before we proceed, I will read the Safe Harbor Statements.

Some of the information we provide during today's call 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 the risk factors discussed in our most recent 10-Q filed with the SEC and our 8-K filed on April 7, 2025. We assume no obligation to update these forward-looking statements which speak only as of today. Also, during today's call, we will refer to certain non-GAAP financial measures. Reconciliations showing GAAP versus non-GAAP results are available in our earnings release and presentation which were issued today and are available on our website at strategy.com. I would now like to welcome you all to today's webinar and let you know that we will be taking questions using the Q&A feature at the bottom of the screen. And you can submit your questions throughout the webinar and Michael, Fong, or Andrew will answer the questions at the end of the session. Please be sure to provide your name and company's name when submitting your questions. I'll now walk you through the agenda for today's call. First, Fong Lee will cover the business highlights for the first quarter of 2025. Second, Andrew Kang will cover the financial results for the first quarter of 2025. And then Michael Saylor will provide an in-depth strategic review of our Bitcoin treasury strategy. And lastly, we will open it up to Q&A. With that, now I'll turn the call over to Fong Lee, President and CEO of Strategy.

Thank you, Sharish. Hello, everyone. I'd like to welcome all of you to today's webinar. With just a few days to go, I'm excited to invite you all to Strategy World 2025, next week, May 5th through 8th in Orlando, Florida. Sharish, you may want to thank you. Come meet our software customers, partners, and employees, explore our innovations in AI and BI, and engage with global corporate and thought leaders shaping the future of Bitcoin for corporations. You can visit our website to register if you haven't already, and I look forward to seeing many of you in Orlando. Moving on to the Bitcoin highlights for Q1 2025. Strategy remains the largest corporate holder of Bitcoin in the world, now holding 553,555 Bitcoins, with a total Bitcoin market value of $52 billion as of April 28th. In the first four months of 2025, we acquired an additional 106,085 Bitcoin for a total purchase cost of $9.9 billion, an average price of approximately $93,600. In Q1 2025, Bitcoin's momentum accelerated meaningfully, driven by a series of landmark government actions. Most notably, the Trump administration announced the establishment of a strategic Bitcoin reserve. This bold move marked the first time a sovereign government publicly recognized Bitcoin as a national reserve asset. In parallel, the administration's broader pro-Bitcoin regulatory stance has further legitimized the asset class and attracted heightened institutional interest, setting the stage for deeper integration of Bitcoin into the US financial system. On the capital markets front, we have also made significant progress. In the first quarter of 2025 and quarters to date in Q2 2025, we raised $6.6 billion net proceeds through our at-the-market or ATM equity offering program and raised $2 billion through the issuance of a convertible note offering. We also raised $1.4 billion through our newly listed preferred stock, Strike and Strife. We expect to continue issuing innovative fixed income securities and seek to enable our common stock to outperform Bitcoin via intelligent leverage. Strategies added to its balance sheet in every single quarter since August 2020 across 60-plus announcements and 100% of our Bitcoin holdings remain fully unencumbered, demonstrating our long-term conviction and unmatched consistency in executing our Bitcoin strategy. This makes us the most committed corporate holder of Bitcoin globally, representing 2.6% of all Bitcoin in existence. As the chart shows, our pace of accumulation accelerated meaningfully over the past two quarters, reflecting both market opportunity and strong treasury operations execution. As the world's first and largest Bitcoin treasury company, we remain hyper-focused on capital markets innovation and our Bitcoin operations to strategically accumulate more Bitcoin. We've now utilized $37.3 billion of capital to increase our Bitcoin holdings and drive shareholder value. That capital was acquired through three primary mechanisms. First, $10.6 billion of debt issuances, of which $8.2 billion in aggregate principal is outstanding. The second, $1.4 billion in perpetual preferred equity through strike and strife, reflecting investor demand for both yield and Bitcoin-linked instruments. Third, $25.9 billion of Class A common stock issuances. And fourth, $836 million of cash flows from software operations. As we reflected in this quarter's capital markets activity, 2025 continues the momentum we built in late 2024, with $10 billion already raised year to date through a diversified mix of securities. This included $6.6 billion in equity and $3.4 billion in fixed income instruments, demonstrating the breadth of our investor support and the strength of our market access. These offerings reflect our ability to tap multiple capital sources efficiently and strategically. Q1 demonstrated that the $18.1 billion raised in Q4 wasn't a one-off. We're operating at a new baseline. Rather, it represents the foundation of our evolving and scalable capital strategy. In terms of the largest treasuries in the world, we've gone from virtually negligible to now the 13th largest in treasury compared to the S&P 500 universe, entirely through our Bitcoin holdings. And we're growing fast. Over the next two to four years, we believe we have the potential to surpass many of the companies ahead of us on this list, continuing to scale our Bitcoin treasury with conviction and discipline. Five years ago, when we embarked on the Bitcoin journey, we were the only corporation with the courage and conviction to do so. Today, there are over 70 publicly listed companies globally holding over 700,000 Bitcoin who are adopting our playbook. There are newer corporate entrants adopting Bitcoin, and some are recurring Bitcoin stackers like us. We welcome all corporates to Bitcoin and are extremely proud to see Bitcoin treasury companies emerging in the US, Japan, India, France, and other countries. We believe our unique attributes and track record of transparent investor relations, conviction in our Bitcoin strategy, innovative offerings, high volatility, combined with the scale of our Bitcoin holdings will continue to differentiate us. Since we adopted our Bitcoin strategy in 2020, MicroStrategy stock has outperformed every major asset class in every S&P 500 company, appreciating 2,870 2,887% to date. To put that in perspective, Bitcoin itself is up 692%. The S&P 500 has risen just 65% over the same period. And while Nvidia has been the top performing S&P 500 stock during this period with an 874% gain, we've outperformed Nvidia by more than 3X. It's not even close. If you look at the last 12 months, we've similarly outperformed all the largest companies, as well as all the key indices. And if you look at the last three months, when the broader macro markets witnessed the most volatility since 2020, we still managed to outperform the magnificent seven and key indices. Our performance metrics speak to the uniqueness and strength of our position in the market. Since launching our Bitcoin strategy, MicroStrategy, MSTR has not only outperformed Bitcoin itself, but every stock in the S&P 500. That kind of return doesn't happen by accident. It's the result of strategic focus, intelligent leverage, and our disciplined execution. We're also one of the most heavily traded and closely watched equities in the market today, both in spot and in options markets. MSTR consistently ranks among the top across open interest, daily trading volume, trading volume as a percentage of market cap. This level of engagement reflects more than just price action. It's a sign of growing institutional interest, retail participation, and the market's recognition of strategy as the capital market center of gravity for Bitcoin. Now I'll turn to our capital plan. In October of last year, we introduced the 2121 plan, a bold but disciplined framework to raise 21 billion in equity and 21 billion in fixed income capital. We designed it to be agile, scalable, and responsive to market dynamics. Since then, we've reported having raised $20.9 billion in equity and $6.4 billion in fixed income capital, meaning we're 65% complete. Notably, 99% of the equity portion has been completed in a mere six months. We believe the accelerated progress is a testament to the strength of our market access and the credibility we've built with all groups of investors who've demonstrated increasing demand for our securities. So what's next? Remember our original inspiration from the Hitchhiker's Guide to the Galaxy, the answer to the ultimate question of life, the universe, and everything. The number was 42 for our $42 billion capital plan. And given our success, we're now going to double down with a new plan, the 42-42 capital plan. That's $42 billion in equity and $42 billion in fixed income targeted through the end of 2027 and inclusive of our original $21-21 billion capital plan. This gives us the scale to pursue our strategy with conviction and the flexibility continue to adapt across market cycles. So to that end, we're pleased to announce that today we've filed for a new $21 billion ATM program. Later in the presentation, Mike will share with you a framework for how we think about our securities and credit risk as it pertains to our Bitcoin strategy, including illustrative examples of how this framework would apply to the different types of securities we've offered, MSTR or convertible bonds, strike and strife. And we're excited about this opportunity to discuss the framework, which we believe is helpful for understanding our capital financing decisions. Under the new 4242 plan, we are 32% complete. That leaves us with around $57 billion of additional capital to be raised through the end of 2027. As we move forward, we'll focus more on the fixed income side of our plan through instruments like strike-strife convertible notes and potentially new structures we may explore over time. At the same time, we'll continue to utilize the equity ATM when conditions are favorable and when it represents an accretive and efficient option for our shareholders. The market has shown strong demand for instruments, and we tend to continue tapping new pools of capital in a thoughtful, value accretive manner while maintaining a discipline leverage ratio between 20 and 30 percent, allowing us to responsibly scale while maximizing long term value. We intend to remain highly efficient with our use of our overall capital. We have $185 million of total fixed annual obligations for interest and dividends, which we can cover using a fraction of our daily trading volume as new stock issuances. To put in perspective, our ATM activity this year alone has raised $6.6 billion, and our obligations represent just 3% of the daily traded volume of our equity and less than 1% of the total equity we've raised in the last 12 months. As a result, we're comfortable raising additional fixed income capital to buy more Bitcoin without being restricted by available cash or cash flow from our software operations to service all of our interest and dividend obligations. Mike will explain later why the strategy is highly accretive to our shareholders. We're tracking well ahead of our KPI targets for 2025. Year to date, we've achieved a 13.7% BTC yield, putting us well on pace to reach our full year target of 15%. BTC yield reflects the Bitcoin gain we've generated through our treasury operations. Our BTC gain is approximately 61,500 BTC year to date. representing a BTC dollar gain of $5.8 billion at the current Bitcoin price. Given our strong year-to-date performance in the favorable market environment, we're raising our KPI targets for 2025. We've raised our BTC yield target from 15% to 25%, reflecting confidence in our ability to create value for our shareholders. And at the same time, we're increasing our BTC dollar gain target from $10 billion to $15 billion. These new targets better reflect the scale of our strategy and the value we believe we can unlock through disciplined Bitcoin acquisitions. We remain disciplined in the use of both the ATM and other capital raising sources, doing so in a way to achieve our BTC yield and BTC dollar gain targets. I'm now going to turn the call over to Andrew, who will discuss our financials for the quarter in further detail.