STRC

• 2025 was an important year with strategic events: adopted fair value accounting, received Treasury and IRS guidance on Bitcoin gains, got first credit rating for Bitcoin treasury company, established $2.25 billion cash reserve in Q4, and MSCI confirmed digital asset treasury companies eligible for inclusion in global market indices. - Software business in 2025 saw cloud transition with revenue going from decline to 3% growth and cloud revenue up 65% year-over-year. - Successfully raised over $25 billion in 2025 for treasury strategy and product ecosystem expansion, with five listed preferred equity securities. - Ended 2025 with 713,502 Bitcoin, digital assets increased, had cash and cash equivalents including $2.25 billion reserve, long-term debt and preferred equity details as mentioned.

• 2025 results were within target guidance based on Bitcoin price at year-end. - Focus remains on systematically increasing Bitcoin per share over time. - Plan to assess strategic liability management opportunities and reduce leverage to enhance credit profile. - In 2026, focus on further optimizing digital credit product Stretch, including improving credit quality, expanding marketing, etc.

For 2025, the company reported an operating loss of $5.4 billion and a net loss of $4.2 billion. In the fourth quarter, operating loss was $17.4 billion and net loss was $12.6 billion. As of the end of 2025, the company held 713,502 Bitcoin, representing approximately 3.4% of all Bitcoin that will ever exist. During 2025, the company added approximately 225,000 Bitcoin. Digital assets increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025. Cash and cash equivalents ended the year at $2.3 billion, with $2.25 billion being the USD cash reserve. Long-term debt was $8.2 billion, and preferred equity increased by $6.9 billion, with total equity reaching $51.1 billion.

• Bitcoin price volatility risk, such as quarter-to-quarter fair value changes affecting financial results. - Quantum computer risk to Bitcoin network, with consensus needed for upgrades and currently not a immediate threat. - Leverage risk related to convertible debt到期, but with conditions where Bitcoin would need to drop significantly over long time to pose issue.

Q: Since the beginning of the year, there have been 3 weeks where Bitcoin acquisitions generated slightly negative Bitcoin yield. What's the strategy and thinking behind those weeks and future prospects?

A: Those weeks were associated with building up the USD reserve to improve creditworthiness. The company would only take such actions when essential to defend credit, and currently, no such magnitude is expected going forward as the $2.25 billion USD reserve was a big move.

Q: In theory, could the $2.25 billion cash reserve be used to redeem the $1 billion of converts putable in September of '27?

A: Yes, the cash reserve can be used for any corporate purpose, including meeting credit obligations.

Q: Regarding quantum vulnerability of Bitcoin wallets and Bitcoin adoption milestones, what's the view?

A: Quantum concern is likely 10 or more years away, and consensus needed for upgrades. Catalysts for Bitcoin price improvement include regulatory support, banking adoption, and financial innovations.

Q: How would strategy's capital allocation framework change if the next Fed Chair is perceived to be less independent and more tolerant of fiscal dominance?

A: The company is reactive to market signals, with option to do nothing and react to capital markets enthusiasm or weakness. It's above the company's pay grade to set financial policy but will react to market conditions.

Q: About the USD reserve and STRC's variable dividend, what's the appropriate minimum reserve relative to dividend coverage and views on leverage on STRC?

A: Target 2 to 3 years of dividend coverage with USD reserve. Regarding leverage on STRC, any levered products are being monitored, but company will see how it plays out over time and doesn't discourage it necessarily but will be thoughtful.

Q: Thoughts on the evolution of the digital asset treasury company industry, shakeout, consolidation, and opportunities for strategy?

A: Different companies will evolve and find niches. Strategy is focused on making Stretch the premier credit instrument, and will be skeptical of dilutive distractions. Other companies may pursue different paths but strategy will stay focused on its core.

Q: Question related to Stretch product's yield boundary and long-term investment view?

A: Company will responsibly manage Stretch's yield, gradually adjusting it while keeping price stable. It's expected to be compelling for capital attraction for a while as traditional finance recognizes Bitcoin collateral.

Q: Conversations with new potential investors since getting a credit rating and what's told to them?

A: Credit rating has opened interest, but it's early. The company pitches digital credit (especially treasury credit) as a first step in Bitcoin journey for traditional investors who believe in digital assets.

Q: De-equitization of convertible notes and refinancing/retiring converts?

A: Convertibles aren't a big overhang currently, and it's not something heavily thought about now as it's far from the put date and unlikely to be an issue soon