MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock Q3 FY2025 earnings call

• Bitcoin treasury: Holds 640,808 Bitcoin, over 3% of all Bitcoin ever, with a market cap of $83 billion and four listed preferred securities. • Capital markets: Raised $19.8 billion year-to-date, reduced convertible debt raises and increased preferreds, with Robinhood listing preferreds and S&P assigning a B- credit rating. • Digital credit: Created preferred equity instruments (Strike, Stride, Strife, Stretch) with different yields, volatilities, and tax treatments, focusing on digital credit as the killer app of digital capital. • IRS guidance: Benefited from IRS interim guidance excluding unrealized gains from Bitcoin holdings from CAMT. • S&P 500 eligibility: Meets criteria for S&P 500 Index but not yet included.

Strategy holds 640,808 Bitcoin, over 3% of all Bitcoin ever. Market cap is $83 billion. In Q3 2025, GAAP operating income was $3.9 billion, net income $2.8 billion, and EPS was $8.43. For the first nine months, GAAP operating income was $12 billion, net income $8.6 billion, and EPS was $27.80. Bitcoin per share was $41,370 as of October 26, up from $39,716 on July 31. Year-to-date, BTC yield was 26% vs full-year target of 30%, BTC gain was 116,555 BTC with a dollar gain of $12.9 billion vs full-year goal of $20 billion. Digital assets grew from ~$7 billion in Q3 2024 to ~$73 billion in Q3 2025.

• BTC yield target: 30% by year-end 2025. • Dollar gain target: $20 billion by year-end 2025. • Earnings guidance: Operating income target $34 billion, net income target $24 billion, EPS target $80. • Stretch dividend: Based on 5-day VWAP, with rate adjustments. • Return of capital (ROC) dividends: Expected to continue for the foreseeable future, likely 10 years or more.

• Bitcoin price fluctuations which can impact financial results. • Credit rating agencies not viewing Bitcoin as capital, affecting credit ratings. • Regulatory hurdles in international markets for capital raising. • Uncertainty around M&A activity and its potential impact.

Q: About funding dividends and mNAV compression.

A: Phong Le stated that current annual dividends and interest on convertible notes total $689 million. Primarily fund through ATM issuances. If mNAV compresses, can sell equity derivatives, Bitcoin derivatives, or high basis Bitcoin while preserving ROC dividends.

Q: Marketing of preferreds.

A: Michael Saylor and Phong Le mentioned experimenting with various marketing channels including digital, road shows, TV, aiming for simple messages like 10.5% tax-deferred dividends.

Q: M&A of Bitcoin treasury companies.

A: Michael Saylor said there are no immediate plans, focus is on selling credit instruments, international expansion, and equitizing convertible bonds.

Q: International capital raising.

A: Michael Saylor stated they will design native instruments in local currencies to address currency risk and access international capital.

Q: Challenges for growth.

A: Michael Saylor mentioned credit rating agency views on Bitcoin, banking acceptance, and educating traditional investors as challenges.

Q: Credit rating and investor conversations.

A: Phong Le said the rating opens doors to institutions, and they are starting to have conversations with them.

Q: BTC yield target and capital raising.

A: Phong Le said they need to raise ~$2 billion and will race to achieve the 30% BTC yield target in the remaining two months.

Q: Strategic priorities and balance sheet.

A: Michael Saylor stated focus on long-term disciplined growth, creating digital credit market, avoiding conventional debt risk to preserve balance sheet and provide long-term value.