Strategy's US dollar reserve is for company's short term: CEO

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• Ability to issue equity accretively depends on MNAV not just Bitcoin price - higher MNAV at lower Bitcoin price can be more accretive

  80% confidence

• Strategy is investors not traders in Bitcoin, buying when able to raise capital rather than timing the market

  80% confidence

• Strategy prefers to increase amplification by selling more preferred equity rather than common equity

  80% confidence

• Strategy categorizes Bitcoin buyers as either investors or traders, with Strategy being investors

  80% confidence

• In 2020 there was an aha moment when Michael Saylor asked Phong Le about Bitcoin

  80% confidence

• It will take 18-24 months for the market to understand Strategy's perpetual preferred strategy

  80% confidence

• MNAV is driven by ability to be accretive in adding Bitcoin per share and belief in thoughtful transparent management

  80% confidence

• The $1.44 billion cash reserve was raised from selling equity at a premium to MNAV, which is accretive to shareholders

  80% confidence

• Strategy has built a Bitcoin reserve for long-term business purposes and US dollar reserve for short-term business needs

  80% confidence

• Strategy may have to sell Bitcoin to protect the company and shareholders if necessary

  80% confidence

• Strategy is not an ETF or closed-end fund but an operating company that creates Bitcoin-backed securities

  80% confidence

• The potential for both Strategy and Bitcoin is tremendous

  80% confidence

• Strategy targets 2+ years of US dollar cash reserves to avoid selling Bitcoin

  80% confidence

• If Strategy tried to become Bitcoin traders, they would lose to more sophisticated traders

  80% confidence

• Strategy could grow significant capital through perpetual preferreds in 1-3 years once market understands the instrument

  80% confidence

• Strategy should trade at valuation equal to ability to grow Bitcoin per share and operating income

  80% confidence

• Below 1x MNAV it doesn't make sense for Strategy to issue equity to pay dividends

  80% confidence

• Strategy faced similar questions during 2022-2023 crypto winter about MNAV compression and alternatives like Bitcoin ETFs

  80% confidence

• Phong Le feels he was made for Bitcoin given intersection of technology, finance, capital markets and macroeconomics in his career

  80% confidence

• Perpetual preferred instrument is superior to traditional debt and convertible debt for various reasons

  80% confidence

• Strategy perpetual preferred C (STRC) pays 10.75% dividend

  80% confidence

• Big challenge with perpetual preferreds was how to pay dividends short-term during Bitcoin/MSTR volatility, now addressed by USD reserve

  80% confidence

• After becoming Bitcoin treasury company, Strategy layered debt on top and it took 12-24 months for people to understand that

  80% confidence

• Strategy should be valued on ability to grow underlying Bitcoin assets and income, similar to mag seven tech stocks, not as a closed-end fund

  80% confidence

• Strategy became the first Bitcoin treasury company in 2020

  80% confidence

• Strategy may have to sell Bitcoin only after a sustained 3-year down cycle with MNAV below 1x, potentially around 2029

  80% confidence

• Strategy sees Bitcoin price declines as buying opportunities as long as they feel bullish about the enterprise

  80% confidence

• Phong Le is an engineer and technologist who likes data and software, with MBA and CFO background

  80% confidence

• Many people don't understand Bitcoin and financial markets, which explains confusion about Strategy's valuation

  80% confidence

• It took about a year for people to understand Strategy's Bitcoin treasury company model

  80% confidence