$SMLR Bitcoin Per Share Metrics - Q1 2025 It didn't take long for SMLR to get back to their acquisition strategy as they indicated on their recent podcast with Tim Kotzman (Go check it out, worth the watch). Let's take a look at where the first purchase of 2025 puts them QTD. BTC / Fully Diluted Share: 0.00021615 (+3.37%) Fully Diluted Shares / 1 BTC: 4,626.5 (-3.26%) BTC / Outstanding Share: 0.00024185 (+7.54%) Outstanding Shares / 1 BTC: 4,134.9 (-7.01%) There was a material gap between the 2 categories driven primarily by a noticeable increase in stock options which moved from 699,000 at the last reporting to 1,141,000 which impacted the fully diluted metrics. Good start to the year, looking forward to seeing what evolutions emerge in their strategy for 2025!

$MSTR Bitcoin Per Share Metrics - Q1 2025 The trend of consistent #Bitcoin accumulation continues in 2025. Even with a short sample period so far in 2025, MSTR has increased their core KPI by 0.32% and it already requires 2 less shares to have an allocation to the value of 1 BTC. Immediate improvement, and the fixed income offerings haven't even started rolling yet! BTC / Fully Diluted Share: 0.00159337 (+0.32% QTD) Diluted Shares / 1 BTC: 627.6 (-0.32% QTD) BTC / Outstanding Share: 0.00182564 (+0.28% QTD) Outstanding Shares / 1 BTC: 547.8 (-0.27% QTD) Lots to look forward to this year. We had a huge improvement in all metrics in 2024, looking forward to seeing what the MSTR team has up their sleeves for 2025!

$MSTR Convertible Notes - Conversion Eligibility Watch 2027 Notes ($1.05B / 7,330,050 Shares) Status: Eligible ✅ The 2027 notes have qualified for early conversion by the bond holders. In addition, these have also qualified for early cash redemption by MSTR. 2028 Notes ($1.01B / 5,513,489 Shares) Status: Eligible ✅ The 2028 notes have qualified for early conversion by the bond holder. For these, it is 100% up to bond holder discretion and MSTR cannot call for cash redemption. 2030 Notes ($800M / 5,341,600 Shares) Status: Eligible ✅ The 2030 notes have qualified for early conversion by the bond holder. For these, it is 100% up to bond holder discretion and MSTR cannot call for cash redemption. 2031 Notes ($603.75M / 2,594,310 Shares) Status: Not Eligible ❌ We have had 16 closes above the $302.54 130% trigger price in the last 16 day. We need 4 more closes above $302.54 over the next 14 trading days. 2032 Notes ($800M / 3,915,200 Shares) Status: Not Eligible ❌ We have had 18 closes above the $265.63 130% trigger price in the last 18 days. We need 2 more closes above $265.63 over the next 12 trading days. Reminder: This is only tracking eligibility. There is no obligation for the bond holders to convert or for MSTR to redeem for cash (2027 are the only notes eligible for cash redemption).

There are many new people entering the $MSTR space which is great to see, but because of this I think it may be helpful to give a simplified example people can use and conceptualize from their personal life to understand at a high level what MSTR has been doing with their strategy. Trigger Warning: It's long, but not as long as yesterday. Income vs. Net Worth These are 2 concepts that most people understand at least at a high level in their personal lives. For this example, we will consider your income to simply be the salary from your job. Net worth is slightly more complex but is essentially what comprises your personal balance sheet (if you've never built one, please do). The formula for your net worth is quite simple, it is Assets - Liabilities = Net Worth. This is essentially saying the value of the items you own less any money you owe on those items (or in general). The main categories that fall into the assets for most people would be things like cash, investments (401K, IRA, Brokerage, #Bitcoin, etc.), real estate, vehicles, high end jewelry and collectibles. There are many other items that are assets, but these are some of the big ones. When talking assets, it's often worthwhile to split out your "financial assets" from your other less liquid assets. This helps you to focus on categories individually when you are strategically deploying them to create more wealth (i.e. increase your net worth). So when you are looking at your options to generate wealth, you are focusing on a combination of your income and your net worth. However, society has essentially told us that your value is tied to your salary and that this should be your sole focus. Every year when review time comes all employees stop what they are doing and look at ways to cleverly try to show their bosses their value in an attempt to get a raise. Often, those raises disappoint so people will shift their focus to opening a job search in hopes of increasing their salary that way. It's exhausting (i've done it too). Who has time for investing? I'll give some unsolicited advice that I don't typically give. For the first decade of your career, hyper focus on your income (salary). This is where your assets will initially be acquired from. However, you have to make sure you don't allow lifestyle creep to take over and eliminate your "net" income (income left after paying your living expenses). This net income is what you can transfer to your balance sheet (through investments, acquiring assets, etc.). The reason I say the first decade is because when you start out in your career, the most valuable asset you have to create wealth for yourself is time. Time is the magic input for compounding, and the more time your assets have to compound in value year over year the more impactful they will be to securing your freedom. So ignore everyone else buying flashy things or spending your time wondering how they could afford them (I can tell you, debt). Hyper focus on funding your retirement accounts, HSA accounts, brokerage accounts, buying Bitcoin, etc. These assets being in place early gives you a superpower that most people will not understand until they have lost the most value periods of time they have to kick starts the compounding engine. After a decade of hyper focus on accumulation of assets, you can essentially let time take the wheel (this doesn't mean quit making money, it means that the value of your assets will start to grow without you needing to do much and hopefully eventually in increments that exceed your total salary). The compounding impact of returns will build wealth for you over time without needing to spend all your time worrying about getting a raise, getting laid off or sitting in a job you hate burning years of your life you can't get back. Your assets will ultimately buy you your freedom and time back, and that needs to be the goal. Life is finite, and the more time you have to focus on passions and not on "surviving" will help make the ride overwhelmingly more enjoyable. Please always remember, it is very easy to look rich. It is very difficult to become rich. Alright, enough of my own personal philosophy rambling let's get back to how this pertains to MSTR. How does this apply to the MSTR Strategy? MSTR has the same setup. The markets have conditioned us to look at companies and assign value based on how quickly they grow their revenue (salary in our personal example) and net income (take home pay). Markets are constantly looking for growth, but because of that most companies don't get to accumulate assets on their balance sheet from these earnings. They need to redeploy them into the company to fund expansion/sales/hiring/facilities/etc. to continue to show growth in the revenue that will indicate to the market that they are on the trajectory to being a "rich" company despite many showing thin margins. MSTR started this way as well. For the better part of 3 decades, they focused on building their software products, deploying sales and implementation teams to get companies onboarded to their BI product, and each year had to hyper focus on squeezing every dollar out of their platforms and contracts that they could get. But once growth slowed, the markets determined there was little of value here due to the forward looking nature of valuations. So Saylor shifted his focus. What he did do during the early periods was create a company that was providing him with steady cash flow that was accumulating on his balance sheet as an asset. They had removed meaningful liabilities, and were actually very strong from a balance sheet perspective (company net worth) and very unencumbered by debt. Now MSTR had a decision to make. Was it a better use of their time to try to foece a 5-10% raise in their salary (revenue) every year even if it meant little in the terms of take home, or was there a different way to generate wealth? They turned to utilizing their assets. They initially deployed there cash in to a harder, stronger asset that had a better anticipated return (infinitely better than the negative return of cash) which could generate increasing asset value on their balance sheet. If your asset growth outpaces your liability growth, your net worth is increasing. So MSTR decided their time was going to be better spent accumulating assets than spending all their time and capital on sales/growth efforts (obviously they are doing this still, but you get what I'm saying). Think of it like this. Let's say that their revenue (salary) was $500M and their net worth after all those years of building the business was $1B (i'm making these up for illustration). Where would their efforts be better served in the long run for generating value through trying to generate a 10% return? Well, if they increase their revenue 10% that means there is another $50M coming in the door for revenue. But there are expenses, so their take home may only be 10% of that amount or $5M. This would mean that they have $5M available to transfer to their balance sheet to put to work. On the other hand, if they focused on more efficient and opportunistic deployment of the $1B they had available on their balance sheet then this same 10% target would yield $100M but they get to keep all of it (ignoring taxes in both scenarios for simplicity). This is where compounding kicks in. If the first scenario, that $5M they took home if it gained another 10% the next year would yield $500K in additional value on the balance sheet (total now $10.5M). However, looking at the $100M generated from utilizing the balance sheet instead would generate an additional $10M the next year (total now $110M). You can start to see the impact here of this happening year after year. But this is misunderstood because the markets have taught us to largely overlook balance sheet strength as a method for valuations. Most often, when balance sheets are evaluated it is to point out that companies have accumulated massive amounts of cash and they can't find ways to deploy it so we start looking for dividends or acquisitions. MSTR is in constant deployment mode. They made the determination that they will ensure their balance sheet is 100%+ deployed into a new asset they believe will allow them the benefit of compounded value over potentially hundreds of years. This approach to time horizon focus is new in the corporate world, and is why so many don't understand the strategy. They take a short term view while ignoring the evolving nature of the world and capital. Summary So in summary, you are witnessing a corporation shift from focusing on income to focusing on net worth. This is a strategy that builds for the long term future. This is an approach everyone should apply to their own lives. Stop thinking short term about the next thing you want to purchase. Set your sights decades out and make the best use of the assets you accumulate early to achieve those goals. We always hear "work smarter, not harder", well for your personal wealth this is what that means. Spend the time working to build your assets, so your assets can get put to work building wealth for you. I acknowledge this is a simplified overview which skips nuances of leverage, MSTR's access to capital markets, etc. But I think it is a core concept people need to really think about and understand as a foundational component for both their personal lives and for how they understand the strategy MSTR is deploying at a basic level. Have a great rest of the weekend everyone!

$MSTR Convertible Notes - Conversion Eligibility Watch 2027 Notes ($1.05B / 7,330,050 Shares) Status: Eligible ✅ The 2027 notes have qualified for early conversion by the bond holders. In addition, these have also qualified for early cash redemption by MSTR. 2028 Notes ($1.01B / 5,513,489 Shares) Status: Not Eligible ❌ We have had 12 closes above the $238.14 130% trigger price in the last 15 days. We need 8 more closes above $238.14 over the next 15 trading days. 2030 Notes ($800M / 5,341,600 Shares) Status: Eligible ✅ The 2030 notes have qualified for early conversion by the bond holder. For these, it is 100% up to bond holder discretion and MSTR cannot call for redemption. 2031 Notes ($603.75M / 2,594,310 Shares) Status: Not Eligible ❌ We have had 5 closes above the $302.54 130% trigger price in the last 5 day. We need 15 more closes above $302.54 over the next 25 trading days. 2032 Notes ($800M / 3,915,200 Shares) Status: Not Eligible ❌ We have had 7 closes above the $265.63 130% trigger price in the last 7 days. We need 13 more closes above $265.63 over the next 23 trading days. Reminder: This is only tracking eligibility. There is no obligation for the bond holders to convert or for MSTR to redeem for cash (2027 only).

$MSTR - The De-Risking Bullish Roadmap for 2025 Trigger Warning - Crazy Long Post Alright, now that I've done an overview of what the unhinged bull case for #MSTR #Bitcoin accumulation looks like I thought it would probably be worth it to spend a little time on what a more measured approach through 2025 might look like keeping risk in mind. We already discussed how $MSTR has ~$65.2M available in cash flow annually to service convertible debt offerings with. At present, they are supporting $4.264B in open convertible offerings which require ~$34.6M in interest payments annually. This puts MSTR at a very reasonable position of utilizing 53.05% of their cash flow for debt servicing. Even if they had taken a traditional $4.264B loan directly from a bank they would be in compliance the typical 1.75x Debt Service Covenants they typically impose. But that's not really relevant, so we'll move on. So what does a reasonable world look like for MSTR? First, they're going to deploy their $890M in remaining ATM. I'd almost count this as a given in Q4. They will want to collect these Bitcoin at lower prices so I will assume they get that completed at ~$65k per Bitcoin giving them ~13,600 #BTC. Now if you are managing risk, you would want to ensure that you allow for fluctuations in your business cash flows as to not alarm the markets by being underwater on what is required to support your debt. I would argue that they could extend up to 75% if advantageous to them to do so, but it isn't required. That would allow for an additional $2.29B at their current rates of 0.625%. But we're staying mildly more responsible in this scenario, so let's just stick with 60% as a max cap with a goal to lower throughout the year. So with 60% as a cap, I would expect $MSTR to do 1 more offering of $725M in Q4 which if executed at ~$70k Bitcoin prices would get them another 10,350 Bitcoin yet this year. So what next? Now we need to start looking forward. If Saylor and his team are as savvy as they seem to be, they are focused on capitalizing this cycle to really cement their advantage, but there is nuance to it. Once they have reached the 60% utilization of their cash flow cap, they will now be looking for conversions. They have 1 convertible note which is well within striking distance for Q4 2024. This would be the 2027 maturity notes at $1.05B. The 130% rule will kick in at $186.22 which is a mere 7.2% gain away from the current price as I write this. That seems very reasonable to qualify for conversion during Q4 2024 and ultimately converting in Q1 of 2025. In our scenario, this conversion is less impactful than most. The reason is that these notes carry 0% interest rates, so it doesn't return any free cash flow from shedding interest expense so this doesn't allow for another convertible offering in Q1 of 2025 as they will still be at the 60% threshold we have established. He may elect for an ATM to not lose momentum, but I'm sticking conservative and will say Q1 is quiet with free cash flow from the quarter for purchases only of $6.5M netting them 69 Bitcoin (I know, not what we're used to). What this conversion does do, is greatly lower the break even price and brings it down from $18,064 in our last scenario to $14,258 due to shedding the liability, so not a total waste since we are looking to control risk. Now Q1 isn't totally meaningless. In my BTC purchase from cash flow above I assume BTC is ~$95,000 at this point in time, and that means that MSTR is likely trading conservatively around $285 per share. So what this means is that during this quarter, it is highly likely that 2 additional notes have become eligible for conversion in Q2 (now we're talking!). The 2028 notes have a 130% trigger of $238.14 and the 2030 notes have a 130% trigger of $194.70. In our scenario is would seem highly likely those would have been achieved. It's also possible the 2032 notes with a trigger at $265.63 would have also been hit, but for the sake of conservatism I'll assume they didn't quite get the full 20 days they needed in a 30 day period. So with the 2028 and 2030 converting in Q2 2025, we now drop $1.81B from our liabilities. I would expect this capital to get redeployed in Q2 2025 as the "last setup" before the bull run "concludes" (we'll see about that). This is a big chunk, so I'd continue to keep it as 2 separate notes and because we now have no maturities in 2028 and no maturities in 2030 I'm going to recycle these into the same structure, but now the conversion price will move up to $370.50 based on the assumption that MSTR is trading around $285 at this time. To de-risk, I'm only redeploying $1.5B this time around in 2 offerings of $750M each. This will lower the cash flow requirements by ~$2M annually and will lower my average maturity per year to ~$725M which seems reasonable. We don't want maturity concentration risk that could result in unnecessary selling of BTC in any one single year. I'm going to assume Bitcoin is now at $100,000 so this nets us 15,000 new Bitcoin to the treasury at the time of purchase. It also lowers our break even price down to $12,460 due to the additional Bitcoin and reduced debt load. Additionally, our cash flow utilization is now down to ~57%. So what else happens in Q2? With Bitcoin at $100,000 MSTR is likely trading in a range around $330. So this allows us the potential for 2 additional notes to convert, the 2031 and the 3032. These notes have 130% trigger prices of $302.54 and $265.63 respectively. With those notes hitting that trigger, they would now convert in Q3 dropping $1,403,750,000 off the liabilities. But now we are nearing the potential tail end of the cycle, and these won't be eligible for the 130% rule until Q1 of 2026 so we are going to get a bit more conservative now. I like round numbers, and MSTR in my scenarios is now at a stones throw distance to 300,000 Bitcoin. So that is going to be our target. I'm going to assume we are trading around $120,000 Bitcoin in Q3 so that means we will need to redeploy ~$1.05B to hit our target. Since these note maturities are still farther out and we now have nothing on the books in 2031 and 2032 we will split this between the two years with $525M each. The 2031 has an interest rate of 0.875% which we will keep, but the maturity has now shortened to the 2032 Notes enough from their initial pricing at 2.25% so I will assume we can now get 1.5% for these (all cash flow improvements matter). With these changes our cash flow utilization plummets to 40.45% and our BTC break even price reduces to $10,917. The risk management is certainly working! The treasury would now hold an even 300,000 BTC. Excellent. But the show goes on so let's bring it home. With Bitcoin prices in Q3 around $120,000, we are probably looking at a MSTR price of ~$370 (likely far higher, but I've been keeping mNAV expansion and mania out of this). So this means that our last note that was put in place in Q4 of 2024 is now eligible for conversion in Q4 of 2025 due to the $327.60 130% trigger price. This is our last hurrah in out quest to de-risk our cash flows exiting the cycle. So now we freed up $725M from the 2029 convertible offering. To de-risk, we are going to replace this note with another 2029 offering of only $525M (to match the last 2 we just did). Let's assume Bitcoin runs up to $140,000 in Q4 so we are able to collect 3,750 Bitcoin with this one. What a year 2025 has been! Let's recap where we close out. Throughout this process MSTR has acquired 51,530 new Bitcoin from start of Q4 2024 to end of year 2025 ending at 303,750 BTC in the treasury. That is a whopping 20.4% increase in holdings. That's an accomplishment in its own right. It also lowers the BTC Break Even Price to $10,123. Exiting the year, MSTR would now have $3.075B in convertible debt offerings on the books. That is a decrease of -$1,188,750,000 or 27.9% from the start of Q4 2024 which is a serious lowering of the risk here. MSTR would now require $25,125,000 annually to service these new notes. That is down -$9,470,313 or 27.4% from start of Q4 2024. This leaves us with cash flow utilization of 38.53% and a debt service coverage ratio of 2.60x. These are significant improvements to the metrics and greatly reduce the risk profile. The beauty is we did all this without taking our foot off the gas (with some cooperation from Bitcoin of course). MSTR would now be in an amazing position to exit 2025, as strong as ever with a huge amount of Bitcoin on the balance sheet. There is still upside in a mania where more debt falls off in Q1 2026, but I have to stop this story somewhere. It's fun to think through regardless. So in summary... Bullish.