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Strategy 8-K Report, Financial Results (Apr 7, 2025)

Reports
Earnings & Results·Other Events
Filing Date
Filed April 7, 2025
Period End
April 7, 2025
In the record · 2016–202610-K1110-Q338-K265

MSTR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’20Jul ’20
  2. Material agreement8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed April 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Strategy (filed as MicroStrategy Incorporated, d/b/a Strategy) reported in this Form 8-K, filed April 7, 2025, that it held 528,185 bitcoin as of April 6, 2025, acquired at an aggregate purchase price of $35.63 billiona (average $67,458 per bitcoin, inclusive of fees).

No shares of class A common stock or Perpetual Strike Preferred Stock were sold under its at-the-market programs, and no bitcoin was purchased, between March 31 and April 6, 2025. The filing states that financial information was prepared by management and has not been audited or reviewed by KPMG LLP. For the quarter ended March 31, 2025, the company received aggregate net proceeds of $7.69 billionb from capital markets activity, including $711.2 million from a Perpetual Strife preferred offering, $563.3 million from a Perpetual Strike preferred offering, approximately $4.4 billion from its common ATM, and about $1.99 billion from 2030B convertible notes.

It also fully settled or redeemed its $1.05 billionc 2027 convertible notes, largely through conversions into 7,373,528 class A shares. Total indebtedness was $8.22 billion as of March 31, 2025, and the company bought 80,715 bitcoin during the quarter for $7.66 billion. The filing states that the company adopted ASU 2023-08 on January 1, 2025, so bitcoin is now marked to fair value through earnings.

It reports an unrealized loss on digital assets of $5.91 billiond for the quarter, which the company expects will produce a net loss for the quarter, partly offset by a $1.69 billion income tax benefit. The filing also cites a $12.745 billion cumulative-effect increase to opening retained earnings and flags possible future corporate alternative minimum tax exposure.

02—Key points

Key Highlights

  1. Bitcoin holdings were 528,185 as of April 6, 2025, with an aggregate purchase price of $35.63 billion and an average purchase price of $67,458, inclusive of fees and expenses.
  2. No bitcoin was purchased and no ATM shares were sold between March 31 and April 6, 2025.
  3. Q1 2025 aggregate net proceeds were $7.69 billion, including $4.4 billion from the common ATM and $1.99 billion from the 2030B convertible notes.
  4. The unrealized loss on digital assets for Q1 2025 was $5.91 billion under ASU 2023-08, which the company expects will produce a net loss for the quarter, partly offset by a $1.69 billion income tax benefit.
  5. Total indebtedness was $8.22 billion as of March 31, 2025, including $8.21 billion of convertible notes principal.
  6. The $1.05 billion 2027 convertible notes were substantially converted into 7,373,528 class A shares and the remainder redeemed.
  7. The company disclosed that KPMG LLP has not audited or reviewed the financial information in this filing.

03—Questions

Frequently Asked Questions

  1. How much bitcoin did Strategy hold and what did it cost?

    As of April 6, 2025, Strategy held 528,185 bitcoin, acquired at an aggregate purchase price of $35.63 billion, or an average of $67,458 per bitcoin, inclusive of fees and expenses.

  2. How did Strategy fund its bitcoin purchases in Q1 2025?

    The filing states that Q1 2025 bitcoin purchases were funded with $4.37 billion from the common ATM, $1.99 billion from the 2030B convertible notes, $593.7 million from Perpetual Strike Preferred Stock issuances, and $710.0 million from the Perpetual Strife Preferred Stock offering.

  3. What accounting change affected Strategy's Q1 2025 results?

    Strategy adopted ASU 2023-08 on January 1, 2025, which requires bitcoin to be measured at fair value with changes recognized in net income. The company recorded a $12.745 billion cumulative-effect increase to opening retained earnings and an unrealized loss of $5.91 billion for the quarter, and states that results will not be comparable to prior periods.

  4. What debt and preferred stock obligations does Strategy have?

    As of March 31, 2025, total indebtedness was $8.22 billion. The filing also states $1.615 billion of notional value of Perpetual Strike and Perpetual Strife preferred stock, with aggregate annual dividends of $146.2 million.

  5. Has KPMG audited the information in this filing?

    No. The filing states that the financial information was prepared by Strategy management, and that KPMG LLP has not audited or reviewed it and does not express an opinion on it.

04—Continue

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