Strategy Inc current report, Q3 FY2025

Business Context and Reporting Period

Company: MicroStrategy Incorporated (d/b/a Strategy)

Filing Type: Form 8-K (Current Report)

Report Date: August 11, 2025

Reporting Period: Updates cover the period from August 4, 2025, to August 10, 2025, with cumulative data as of August 10, 2025.

The filing primarily addresses updates to the Company's At-The-Market (ATM) equity offering programs and its Bitcoin (BTC) acquisition strategy.

Key Financial Metrics

ATM Offering Activity (Aug 4 - Aug 10, 2025)

Program Shares Sold Notional Value ($M) Net Proceeds ($M) Remaining Capacity ($M)
Common ATM (MSTR) - - - $17,042.7
STRK ATM (8.00% Pref) - - - $20,450.2
STRF ATM (10.00% Pref) 115,169 $11.5 $13.6 $1,867.4
STRD ATM (10.00% Pref) - - - $4,182.0
STRC ATM (Var Rate Pref) - - - $4,200.0
Total 115,169 $11.5 $13.6 $47,742.3

Bitcoin Holdings (As of Aug 10, 2025)

  • BTC Acquired (Period): 155 BTC
  • Aggregate Purchase Price (Period): $18.0 million
  • Average Purchase Price (Period): $116,401 per BTC
  • Total Aggregate Holdings: 628,946 BTC
  • Total Aggregate Purchase Price: $46.10 billion
  • Total Average Purchase Price: $73,288 per BTC

Note: The filing does not provide current market value of holdings, revenue, operating profit, or cash flow statements.

Material Changes

  • Capital Raise: The Company generated $13.6 million in net proceeds from the sale of 115,169 shares of STRF preferred stock during the week of August 4-10, 2025.
  • Asset Acquisition: The Company utilized proceeds from the STRF ATM program and a previously completed IPO of STRC preferred stock to acquire an additional 155 BTC.
  • Cost Basis Increase: The average purchase price for the specific period ($116,401) was significantly higher than the historical average cost basis ($73,288), indicating recent purchases at elevated market prices.

Guidance, Outlook, and Risks

  • Disclosure Channel: The Company directs investors to its website dashboard (www.strategy.com) for real-time updates on market prices, BTC holdings, and KPIs under Regulation FD.
  • Capital Strategy: The Company continues to utilize multiple perpetual preferred stock ATM programs (STRK, STRF, STRD, STRC) to fund Bitcoin acquisitions.
  • Risk Factors: The filing does not explicitly list new risk factors but implies exposure to Bitcoin price volatility given the significant increase in the average purchase price for recent acquisitions.
  • Unusual Items: None reported in this specific filing.

Investor Verification Checklist

  • Verify the current market price of Bitcoin to assess the unrealized gain/loss on the 628,946 BTC holdings.
  • Confirm the dividend obligations associated with the outstanding perpetual preferred stock (STRK, STRF, STRD, STRC) and their impact on future cash flows.
  • Review the "Strategy Dashboard" on the company website for the most recent daily BTC purchase data and updated cost basis.
  • Monitor the remaining capacity of the ATM programs to gauge future capital raising potential.