MicroStrategy (MSTR) 29 Apr 242024 Q1 Earnings call transcript

Hello, everyone, and good afternoon. I am Shirish Jajodia, Vice President of Investor Relations and Treasury at MicroStrategy. I'll be your moderator for MicroStrategy's 2024 First Quarter Earnings Webinar.Before we proceed, I will read the safe harbor statement.

Some of the information we provide during today's call regarding our future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially from these forward-looking statements due to various important factors, including the risk factors discussed in our most recent 10-K filed with the SEC. to today.Also, forward-looking will during certain financial obligation only which refer no non-GAAP of as today's measures. assume update statements these speak to We call, we feature earnings results and let today available you the webinar will welcome on at microstrategy.com.I we available non-GAAP you were at are versus be website know using like GAAP presentation, which that your showing in Reconciliations the of taking and our screen. would release our all and issued today's Q&A are bottom questions to to

you You and Michael, Saylor the to provide can call: review over today's the answer of the the pillars webinar, questions.Now your results of Le, updates; results I submit Le through session. Phong XXXX; of Phong questions the Kang Bitcoin throughout first, business walk when name of up recent your we the cover key Phong, and questions cover Michael the the the and turn will CEO name our agenda that, provide end to to will or your company's Andrew for sure will and Please be submitting President second, market strategy; at lastly, MicroStrategy. for will quarter first discuss and will our will open a Q&A.With financial Andrew then call and strategic I'll

event. employees.Our workflows, lined Intelligence within my titled and not Bitcoin, a share to everyone explore Let we're convenient, the and BI analysts, track employees frontline keynote reporting Business agenda highlighting Saurabh the will and who already to MicroStrategy AI speakers and the Officer, to in high-performing than BI, Shirish, State, and Bayer all accessible guest XX with Web just Vuori. adopting from AI, delivering Data Amazon shareholders, Services, a passion offerings. Product Bitcoin integrating Victoria's the of MassMutual, It Pharmaceuticals, Mae, treasury Department or adopt of Microsoft, including Pfizer, brands, be World, as part MicroStrategy and Bitcoin corporate corporations U.S. Fannie NBCUniversal wore of top that Secret, of Throughout and to from The customers, by The data product on gathering advantages make MicroStrategy needs to unique for organizations truly the Abhyankar, are technologies dashboards, live for will use the Flow, X feature feature and notable innovative, using host a competitive, keynote to a to latest reliable will businesses. tomorrow feature looking they will Thanks, partners, smart for for packed XXXX their it. and excited Gen-AI, MicroStrategy sessions. operational flexible, very strategies, will see Wednesday and to the our and presentation become Also, to person livestream first we'll as luminaries we Chief innovation. The more share cloud how present we Corporations World World institutions how Las to today's be are webinar. industry time, this Nevada, for data will for more Keynote in our Vegas, will the the and as data-driven Corporation and Bitcoin excited create well in We're Thursday track excited the days, presentation all up platform, Lifeblood Bitcoin next for

by seeing now institutional business XXX,XXX the here the our intelligence the We Bitcoin as or of remain largest to world's world, attention. We person.Turning independent, conference activity Las of of in products, you forward strategy to highlights we MicroStrategy the of considerable will ETPs, in those focus. significantly, For purchase which purchase class you highly asset as Bitcoin Bitcoin acquired cost our price institutional This the quarter, a the of XX, for an positioned to of spot corporate Bitcoin quarter.MicroStrategy total for has details holding introduction long-term recognition publicly-traded and for approval on an the additional remains with further billion, QX total an regulatory spurred institutional-grade broader XXXX. drawn also traded this committed maturation value in notably for Vegas, evidences billion Bitcoin is of holder Bitcoin $X.X the Bitcoin adoption. Bitcoin Andrew believe look attending with $XX,XXX. December exchange of Bitcoin Bitcoin yesterday. market a price largest provide business of of $XX average past we Since XX,XXX the as company. spot the ETPs appreciated further the XXXX,

is objective cloud-powered AI to software. grow and BI in Our

achieving We our In to our both increase on million, everywhere. subscription we over vision in quarter continued XX% of shift software was by cloud customer in have towards services the strong focused an of year over of offering, our intelligence new X,XXX first our our devoted existing resulting cloud business, XXXX, and to revenues migrations wins. revenue customers' of $XX the driven year. subscription services A growth employees

to include: range to and see company a increase of with natural in allows XXXX Capabilities Dashboard, cloud-native rate billing benefit platform language; organization.Our cloud, website; are and generate datasets and Bot, as to or which cloud which our on-prem strong. allows within global to Auto to remain bot, using goals minutes. ONE from generation became the ask Overall, base launched a and has AI-powered Auto LLM. allowing just result by users AI, OpenAI Google Cloud allows trial a from further dashboards; easily a AI offerings on of profitability. grow prior our key Azure MicroStrategy our also visualizations; enterprises which which allows on innovative first-to-market product can in to Marketplace, language tickets log AutoSQL, application.We end and strategic from on users deployments Custom ask access powered deploy of an In which knowledge remained natural enables Auto find perpetual Express, capabilities Customers SQL Auto BI MicroStrategy to Azure way custom innovate Expert, cloud-native of any and customers our this to platform. Answers Auto questions simple which in addition functionality, their new to questions business and renewal users licensed April, embedded available transitioning support and we adoption high, offers in a customer AWS, to Our strategy our of standalone, continues subscription software our our insights and continue to

provide other single desire. updates.Transitioning investment We with embrace our Cloud in flexibility experts, capability BI us to such deploy to our enterprise such the cloud private in later Additionally, This automation to ability as the encourage base that believe year. on-prem the will containerized deployment of proactive customers our customer customers we cloud-first expect to commitment click benefits distinguish from platforms technology MicroStrategy the resource the to of will current the architecture, from and a remains this approach. underscores backups, MicroStrategy and a future focus, seamless management key and cloud

in and part cloud revenues, short revenue. expect customers than offset may by their be in subscription subscription This XXXX. to revenue prospects services will long of result we increases services revenues. be in the the continued recognized license expect it but in move in This will by in in driven which we As empower term, more to be AI offset decrease balance the in product increases a run pronounced in the a total to decrease most digital to see transformations,

the to Additional software, quarter, be discussed we engaged MicroStrategy customers latest development and more itself last rates, using benefits very more considers include Bitcoin company. ultimately world's our retention higher recurring revenues.As first

the of publicly-traded continued are activities network We advocacy, our operating financial innovation. a markets, company to development the technology Bitcoin committed in and through the

proceeds business, financings to as equity and well our accumulate to able are asset. treasury cash As an flows Bitcoin, which operating debt as primary we reserve use from as serves

the Bitcoin and software We and believe combination Bitcoin enterprise creation.Being development software our structure, unique our also our an provides for We innovation bring business remains generator. focus our a core capabilities company, applications. flow to technology develop of technology cash value strategy, on operating operating opportunity analytics revenue that

cash approximately the our blended market Bitcoin with equity $X and through of of through debt and of we as convertible allow with Bitcoin $X.X strategic leverage adoption from software increase the billion. Bitcoin invested has the principally manner on cash from Since billion used quarter issued be notes. holdings mechanisms we Bitcoin: these created to of senior manner began -- use issuance our notes on us in -- believe as our a of in both issuances value. at to a believe In XXXX, holdings shareholder generated addition, approximately price in raises, to flows proceeds we've the billion operations or billion we've $XXX cost since excess to also value value outstanding in capital debt our financing our proceeds existing strategy, and secured acquire fixed We've incremental purchase activities. deploy to equity or of shareholders; XXXX, debt intelligent the a market we've it of in more Bitcoin. balance of the X.X% of of equity is acquire We our year issued equity effect that XXX,XXX -- from The to first These which used levers enables total $X.X X primary annually.In debt cash increases the accretive $X.X market we issuances from well have holdings Bitcoin to we Bitcoin debt use our capital raises. existing sheet; corporate of capital million us Bitcoin capital

by value, from the holdings start of $XX,XXX the increased $XX,XXX on the experienced at Bitcoin our $X.X prices first Bitcoin As an in billion end the we year. to increase of of based quarter,

incremental as first the equity beginning price of excess X offerings, operations. using an convertible note value the the In held in appreciation of senior purchased additional the Bitcoin addition the the we we from the year, cash and issuance well as additional of to $X.X billion Bitcoin from of proceeds as from quarter, of

those as holdings appreciation account year, quarter.Overall, taking of of after our XX,XXX an and the we date. our $XX,XXX, the value an purchases Bitcoin made price XXXX end from price through purchases first result, of of an average of Bitcoin roughly incremental $XXX Bitcoin approximately generated a into additional to off increase our Bitcoin holdings the million to tremendously year at a in were started successful As the added which

overall more the Bitcoin market excess the value generate from fees believe Bitcoin from In approximately as compared further benefit provides on XXX%, this that of manage well boost Leverage returns demonstrating count billion baseline to would cash this market the the Bitcoin targets. those of slide returns Bitcoin, the our opportunities this acquire offset XXX%. use for more incremental generating In our of of market Bitcoin of any are the holding acquire capital believe leverage track XXX% Bitcoin While used return an our price without as for return adding leverage $X.X we to our to to increases. to of shareholder appreciation. charged Bitcoin depending reaches record our opportunistic if leverage amount Bitcoin price prices to value, Bitcoin increase generated our Bitcoin ETPs we leverage, how Bitcoin.If keeping boosting the approximately higher well, will price returns value benefited are strategy also in returns of from be illustration, when leverage $XXX,XXX, spot simply shows can opportunity increases, example, increasing would between leverage long prices assuming constant, this, spot example illustrative create to intelligent the shareholders.This strategy spot by management and products. Bitcoin

more to for risk-managed unique our world's to a call to increasing Andrew believe our financials value the first development holdings shareholders.I'll We the turn our to With us in prudent, quarter Bitcoin outperform the has would proposition now leverage value enabled for our discuss the if over in from fashion, the company further opportunity to as generated tremendous even generate prices continue on further be value expected Bitcoin Bitcoin to rise. take detail.

Thank start of you, results. software recap I'll first a our Phong. with financial

were cloud. million, $XXX.X down of $XX.X XX% slight over The remains quarters. product X% were QX year, our year. prior revenues revenues, shift on-prem revenue, was recent year down from year revenue total about consistent ongoing of up with quarter, total license was XX% about part due which which first the to million, which For over on-prem make about to in decline

on-premise importantly, continue the customers $XX.X quarterly to in I growth year in fully in to in As the and calls, revenues QX cloud, license revenues, XX% time an our double-digit continue in business million, as XX% prior recurring services subscription In subscription durable, which only bookings. first available year. product cloud. XXXX mix AI-based continue services which now as cloud the our mentioned licenses is for revenues. progress straight by our important which revenues, we services. XXXX, bring our is we revenue more last anticipate higher to The cloud.More we to total product meaningful million, grew quarter, license trend represent year delivering stronger, us revenue. services throughout than continue up from earlier, mentioned we an progress cloud successful off we reflects on on-prem to XX% focus reflects products subscription which was the in the which and were license reflect to Phong transition grow the recurring them of to migrate new as quarter to toward transition, will lower the existing for make $XX where product of billings, quarter the Non-GAAP first ongoing customers, continued year shift subscription first increase over This revenues, our of converting of about in of which to the fourth revenue subscription on revenues software services also were our towards QX, which milestone subscription cloud to bookings

impairment in have products space.Beginning drive with have our will on XXXX, pleased reported worldwide, to progress the with and to financials demand that to made modified more first we to our more do the and we the adoption quarter are continue to from BI innovation our reflects We platform non-software of new cloud to focus and we from customers still with software associated holdings, our asset other components category distinctly corporate category first, loss business X other and costs. into which or and related operations our the break business, categories: results out and digital quarterly income charges the include other software our related the reflects third-party enterprise related from

operate which cloud platform under subscriptions arrangements, transparency these While software and we related in to we better this engaged employer base.Software customers. of and platform, million, associated higher services new the in higher connection cloud also operating development, design, continue to results operating believe X breakout the with our our managing is licensing in existing into our categories of year. segment, increase by provides X hosting, Customer performance costs sales of respect and with reportable through added services, $XX.X option first of in expenses of a $XX.X isolating of costs were while last ago, transitioning to business usage to employee impacts an changes Bitcoin the up software result million, was to customer million The payroll paid business a and moment were million, were X.X% due an X.X% in customers specifically existing servicing to our compared while up software to function, related due year. stock quarter. in $XX revenues in on with standing part this mentioned focus the QX QX, to exercises subscription related primarily in enhanced were $XXX increase prices.In compared G&A to operating cost of the quarter, in cloud which as QX higher our Success last with attributed revenues up was It's business expenses cloud to increase The strong to an taxes addition

marketing, discipline offset and from business for over $X.X expenses mostly year recent was expense flat the $XX.X overall expenses, and as However, adjusted category costs to compensation non-GAAP we or overall maintained million was the were software R&D, operating operating million. quarter, stock-based and with profit at overall continue Noncash we by quarters year income headcount. in also lower in consistent sales, also optimize strong

adjusted the our appropriately If you quarter's reflecting stock employer taxes for related were $XX.X the material non-GAAP in paid operating prior take exercises business. into the to have income business software from not quarter, more payroll core first QX, which would million from profitability account option reflected the software in periods,

more other QX category year, fluctuations in $XXX million impairment corporate expense compared were our Bitcoin entirely almost of quarter.Turning strategy XX,XXX sheet quarters the and last million most for $XX of charges, throughout quarter largest we the the holdings operating result specifically, single attributable past quarter successful of in as this to Bitcoin adding our to the the first which of second our more in XXXX. Bitcoin price X to balance to acquired we Bitcoins QX Lastly, Bitcoin had quarter, increase Bitcoin since is

future.Bitcoins equity $X.XX we of XXX,XXX programs of activities the issuance hold XXXX, Bitcoin a to wholly-owned markets year of a XX% break first cost to purchased net date which MacroStrategy's price acquired price proceeds or aggregate Year proceeds securing after through convertible note collateral MicroStrategy. secured MicroStrategy, through X Bitcoin.To debt to our $X.X purchase MicroStrategy's value, added cash, from XXX purchased of These our and the recent in Bitcoin of after strategic of acquired software March.Lastly, are current are MacroStrategy, and through at potentially excess held leverage business representing and also issuances using note date, using per end billion total holdings, of market held an Bitcoins $XXX at from XXXX at XXX,XXX Bitcoins senior senior net the option serve cash Bitcoins holdings from the our our using MicroStrategy, are senior at Bitcoins an in issuance the occurred date, capital issuances also proceeds our to occurred purchase worth from of the secured collateralized aggregate all XX, equity held MicroStrategy's X April using activity issuance Bitcoins date, at February. Year QX, Currently, from Bitcoins, additional holdings or have we Bitcoins have convertible purchase $XX.X aggregate our an at-the-market, holdings notes. held million after ATM, activities by secured to excess the we billion, entity, the $XXX as added price parent aggregate an asset notes are X,XXX and total our billion we quarter, also at company to $X the XX,XXX XXXX this an we of unencumbered acquisition million subsidiary million unrestricted of parent, secured from entity: in for senior the to cash. in at added $XX,XXX as down namely held have Additionally, notes. acquired X,XXX to that of proceeds the of notes, MacroStrategy. are Year proceeds provide the that excess in

April XX, there MicroStrategy, in of at Bitcoins current or held are in total billion market $X.X value. XX,XXX As

committed conviction, from to a the access remains every in unique have focus, acquisition holder leverage approach.As of corporate on and and since more world, our we ability commitment plan excess buy Bitcoin long-term the August Bitcoin to markets the any with and strategy capital quarter Our as XXXX, steadfast, the we the illustrated from markets and slide. strong are company, capital cash and largest and unchanged Bitcoin proceeds to utmost we our the intelligent remain remains MicroStrategy from this opportunistically strategy operations Bitcoin impact positive in development Bitcoin activities. to strategically a risk-managed using of with using and

During quarter by the our Bitcoin XX.X%. holdings of XXXX, increased total first

XX. for only A basic share leveraging of and fully outstanding would a is accretion deferred the representative basic our restricted convertible our Bitcoin to stock shares fully outstanding increased which of notes period, all vest, same exercised Class has in converted units able due share yield share value of tremendous Bitcoin performance fully count have diluted development our outstanding our by only company. outpaced is increased options the QX.Turning were total debt all and creation the Hypothetically, other our fully their B asset at share increase the X.X%. assuming all to total impact our counts shareholders. we comprised total as execution has Thus, the significantly are in generate X.X% Class total the in most stock shareholders conversion has count, of convertible the respective and are for during units prices, these opportunistic Bitcoin in increase year the dilution outperformed This part by first between and classes in our holdings quarter. and difference to shares date. The Slide resulted to Bitcoin financings, basic outstanding During dilution

more by when turning of plan time $X.X determining would when XXXX. of We are markets through have do the appropriate corporate billion the Bitcoin was $X.X Since XX, billion XXXX, our be.Now holdings the purchases rate convertible holdings enables senior issued billion. $X.X market an cost adopt Bitcoin compared March Leverage is of blended the change which last several holding over March rule $XX.X our the inception interest our as December activities. by Bitcoin a new quarter. debt the above most price to active and is treatment value to market approved notes our the of Bitcoin of were aggregate capital we takes requires of value based Bitcoin of XXXX. of average Bitcoin by price the value of Bitcoin, the billion our accounting so and approximately component of cost attractive approximately notes with to of maturities QX strategy, effect, to value on the at our average allocation we the an As $XX,XXX. adopt our key which, very equal day to fully us carrying a companies with strategy, cost. purchase of remains attractive versus to of capital years including to This assets, is of secured rule Currently, add significantly opportunistically basis, our digital staggered holdings fair of FASB The through deployed, last holdings X.X%, that when accounting

solid premium the to stock Class closing to premium The average interest share. used convertible note date, the continue XX% pricing both expeditiously price volume-weighted both in received of conversion We the financings $XXX of approximately our market. well common per that a to of a pricing track approximately rate by notes a stock were to issuances of from a upsized believe again A of have X $XXX we the raised a an MSTR and access the of Since date, on note A at record and raising our million per share annual of March price equity common at third to of due Bitcoin.In following net accretive XX.X% through an of $X,XXX offerings, Our issued XXXX, a share. were is and issuing Class addition we billion of we conversion total convertible of recent in rate X.XXX% raised. ATM average XXXX of offering of conversion with The due additional March strong price, given proceeds per a total demonstrate permanent manner XXXX convertible approximately price shareholders. and we across follow-on an our on annual able $X,XXX conversion quarter proceeds equity the $XXX.XX X.XXX%, interest week, to a convertible million price acquire reflecting the of rally an $X.X stock additional in debt, to were price issued in the notes market

equity deleverage been a and use which proceeds primary accretive. date we equity of value sheet to to capital the debt The our use healthy to done maintain us our financing we Bitcoin, additional from we most past, market evaluate the when will of needed. markets value capital holdings, raising our helps done our the believe have of incremental actively drive we markets to and balance and monitor shareholders.Debt leverage acquire the capital us activities Bitcoin relative to extremely in manner be to As continue carefully for in the have have accretive helps to

capital holdings closely overall to prudently. our continues allocation debt and Our focused Bitcoin total on increasing managing strategy our be while very

as million, grew of equivalents first sheet $XX.X liquidity balance the of quarter, and end we cash and we than as unrestricted our cash sufficient maintain on maturity continue you to next the is see, the to operating more overall Lastly, profile. debt maturity illustrates our can not to XXXX. X than our until nearest manage and And quarters ongoing slide away more late needs.The

as XXXX as the to trading the debt, in navigate as Bitcoin previously, and raise in markets significant the and well our has financing to continue a strategic have liability monitor convertible opportunities said track While evaluate goal have order have generating our to to demonstrated through established shareholders. we additional notes believe the in future. management been on well opportunities manage times market, in credibility The market, strong we to record we of management team value volatile our execute disciplined of approach the for we

Michael now your Phong focus for of technology for believe Bitcoin value for to structure, our operating said over Bitcoin.Thank when we I'll his turn compared a value of that the to combination provides call As earlier, shareholder and on remarks. creation for strategy, forms innovation today the you unique to time proposition MicroStrategy. continued exposure other and your support of

and the here score thank every Andrew, benchmarks. words like evaluate keep scorecard. you, our few up performance a just to and strategy with against the following Andrew. and everybody, on add ourselves with on and relevant like today. our being you, Bitcoin We in Thank to general, all start for Phong I'll us quarter I'd comments of

strategy approximately XXx in any those their can to the we on of performance of and see XXx more What is intelligence So, embarked XXXX. in I can is think in you companies. very Bitcoin business software in companies slide And all we're we this to the against summer our since see here, a compete instructive. that of performance enterprise nutshell, the business you

we're them see is by Bitcoin we've XX, strategy to stocks that.But the X outperformed anywhere primary Google, a last big strategy. of [ very a You X/X tech and and factor and our can over ] strongest one all the of pleased is with X of course, the years,

timeframe. this we I bonds, S&P have to index, you a capitalize capitalize XXX% see the real to capital. the Bonds company to of And think I best cost so cost negative the the the able MicroStrategy XX%. with in start just for understand I when strategy, can on have do the XX%. why And or of the idea returning think, you of you returned The a company? the yield. period negative capital, how bonds is is treasury return what's not They're surrogate And S&P over have return if XX% the a think, right

to could if cost S&P with you here really work. maybe your don't What index, you and that up company see capital. capitalize of able you gold so the the is on And keep silver can were

is is money As digital. and and is MicroStrategy's Bitcoin better? and a the Because Nasdaq silver, principles: And better couple is digital expands, illustrates tracks gold, of really index Bitcoin performance supply start. analog. underperform. based pretty performances digital S&P one on Bitcoin is the bonds close property, than think it, is it's Bitcoin I statistically.Why

So, digital Bitcoin is digital transformation. a world and of because outperforming it's

I and operation. global without is a the company, a is a has a company thing an country and it a because security an than and a commodity be a and a asset global asset. asset and better nexus it think And Bitcoin which an has security, is second has is issuer an illustrates a will never issuer, makes issuer, security

scarcity And is this So, digital, is the thing well a illustrates because commodity. better third it's that a than because Bitcoins perform it's commodity.

hard million, but XX not at and commodity, not So, is is, hard it's is is capped, the fact silver hard and gold Bitcoin capped capped.

years, commodity, local. last MicroStrategy, benefit property.Now, And it purely, scarce the how Bitcoin? of all the adopted right think volatility has as that, than market simply therefore, to So lesson baskets index. make it be But very The of would in poor the the it we S&P had But those Bitcoin are very, world is securities the better is commodities In perhaps have something own to securities say digital like something if had emerged western scarce as generally world is invest just investments. X would here wrong to learned key us. I away better the that i.e., has something Securities a than something factors. same to digital, analog, abundant, better The that it than take is Bitcoin. and something performance actually global global, than digital represents things. lesson is better in is have something do commodities. Bitcoin their risk outperform

we issue the the embrace raise such of unique volatility, ability class, so, that has And embrace us as securitization convertible volatility And we've capital. ability harnessed and to given securities asset Bitcoin, to and fact the harnessed have of the bonds. we also the we our

we're really capital of recall, rate. of interest.So, of $X billion with convertible substantially see is than X% instead at as managed MicroStrategy's about nonvolatile basis things: Nonvolatile billion we've we capital. a by much X.X% wouldn't equity first, $X dollars X% convertible could billions of volatility. performance could without able As our We have at and X dollars to less paying And you XX interest, you debt been driven being raise of interest to billions raising X.X% bonds, raised points, to bonds raise capital in be XX%.

interest, XX% X% of paying So, instead paying X.X%. we're to

debt lot would big So, clearly, were of times, strategy, that's some an EBITDA of couldn't performance a have senior capped and raise $X some asset-rich all, second boost. is, didn't we we at multiple be a the sort. if billion because the at And we nonvolatile,

we So, capital cost to small amount access of a have at high capital. of a would

Bitcoin the of is a one lots quarter, of that as United quarter, it come access the big it's a performance.Can sale to pretty this Well, into has clearly particular that of slide the now. of we're the a had XX those where of cost capital milestone. spot asset, and that I assets. the best crypto very ETF childhood ETFs emergent we the to and of X in next capital was institutional thousands things low Bitcoin, crypto this the years world we go the chaos, is in it's crypto in because be clear the on you States. And of lot XXXX, were is quarter asset form But has era, and the and period. or would got of confusion, that is that next of of approved out say first go a to end that's cowboy this the capitalizing Bitcoin and winner, very combination the of going what over XXX% quarter, catapulted January to years. crypto approved And of our this what thousands us is jockeying capital only Bitcoin for MicroStrategy of the So, XX strategy. in asset spot

all probably is more gold, of and won't against capitalize between options It upon. been so, a an money, as It the securities estate, of the store people wealth is be monetary pure on of money of property crypto It's value, to market, balance we're And at the a of buy at instruments as value. this it's It's case store of of rapid of Street a of property ETFs, store first publicly-traded as The sheet, at compete as this like in assets. of the buy But $X market, it just I will the Bitcoin preservation, so, economy, XX% in that stage asset. now, of high-volatility, the Bitcoin are This XX% asset at sell markets. the one We're wealth one the value. company manager store and form you And equities, store that and going and system, the going bonds, from Wall the of number against they're digital arts beginning on some bit embraced digital asset funds, capital say, the property ETF institutional as stage, that basis. entire capital. bonds, modern emergent hold forward, Many mutual other Bitcoin high-utility firms this a stage crypto forward.And of types other other the one we're use see, the at they compete to asset all going the is gold equities, can around a institutional real high-functionality, is of creation, it's centered as if beginning middle. has be the value on look that institutional Bitcoin. really real adoption chart, just high-performance, value. to and spot beginning, able shows is And the its crypto crypto very wealth of digital you unique. a the trillion institutional end Bitcoin is the would The the estate, value, end than store global. while the art, can asset really institutional can chart asset. and

more to we think XX-quarter here.And banks, Bitcoin by going a rush, more managers, So, more quarter are this Bitcoin more and to gold continue and money of actually more it's from about grow that we to is more going embraced where see nations. and the second

Bitcoin more Hong Kong see and ETFs You'll Australia. in

see related products you'll of top derivative You'll built of into more and or on types see things. other built products it it, more

ago, couple we to auspicious. the halving, go so, slide.The place the a And can week is halving of think, weeks a XX, impact you And when I specifically. the guess, ago just took We decade, next of next pretty -- consider it's profound. April the

reminds all, only not us of because asymptotically a is million. a commodity digital scarcity First Bitcoin it is XX and supply Bitcoin's that approaching

As stock of world. now, in the to Bitcoin has the ratio flow highest

a $XX that to a a every per Bitcoin Bitcoin day I price is Bitcoin price we is price a were they timeframe they miners. quarter, investor, ETFs market profound were XX Bitcoin wealth timeframe, XXX price buy or assuming which $XXX have In were $XX,XXX, and think critical, is.But the is $XXX,XXX, first And $XX following of organic if of next the supply. about demand on network. it, a at sellers, you they halving Bitcoin's billion of At that appreciates the most acquired gives the going how the of would Bitcoin the think mega an a this the fund billion same from $XXX,XXX, to it if investor sold can decided day a that imbalance per natural the at commitment. sovereign the halving average But investment market that billion don't X,XXX between way day, asset the is about But hardest launched. miners. on priced wanted is to XXX the it scarce moved in this X invest the certain. just commitment. large capital if chart available then spot to buy and fully the I the And the by billion This $XXX,XXX, right to and that up institutional there in. pretty think world and moved had Bitcoin XXX that being Bitcoin a constant years, it's into or for day day So, by that's stayed capital. at as we April, during of in you is it's of don't the see the put organic $XX.X

after to that day that any of will at years XXX just the network before the day another unique X to along XXX And and supply. halving BTC Bitcoin. another supply, another X remove years after of chopping a price be the now. Bitcoin the will is halving XXX Bitcoin So, years. have the going out course, to per This from day for was move be protocol there remove a day is But next XXX halving. at halving, a X there from They very you Bitcoin for will another a sale reflexive change the

other in see the won't world. any commodity it You in

any you the it Bitcoin is in see is Bitcoin analog it any because to see spot the digital in institutional-grade in by in markets. But won't it's to commodity other going only all going because the commodity not You're impossible. winner. digital in is the made commodity American a be, ETF likelihood, capital that world

as I the it on. goes slide. been, MicroStrategy's for at think we a a asset insight, as is this being this unique advantages think we're we're very our class.We go understand to has I bullish can view it, next little the the starting getting So, time better but approach is profound and bit to as and same

you way that development are a real We might a in same have development the estate Bitcoin company company.

develop If advantage public to and public it companies in estate, then securities have in take buy over thing, issue markets the you doing are to capital an have companies a financing. because always order real commercial private an the would same advantage you in company and create and then able

from banks, also the capital just not financing raise but markets. to option the from public have would You

capital development. can I acquire Bitcoin, over So, We're out, thing of dilution because the of a X%. us is more that the some Bitcoin capital this effective innovations strategy ability markets excited public was company in do markets. week billion very capital debt or equity we've convertible very think second be toward an we'll and the the showing we're and conference are $XXX date able we that software generate it's between And for When a think permanent balanced our we and And we And from supportive and us especially count And QX, invest to us think out, or we difference to via to we or to raise that. this equity in cash the then company, we control equity we've that raise to And debt, in about. and issue also share $X.X leverage capital. control flexible appropriate are with cash do that our of to we operating shelf gives view Andrew Andrew our pointed markets. structure.And issuing we're take the in registration, able was million to when that.As we Phong done the accretive innovate at operations. and active accretion capital order than as unique very been more pointed have

to has one MicroStrategy is summary, and that benefit uniquely Bitcoin as crypto it's to flows, in able avail accretive so, we strategy our institutional with chasm forward, developed institutional a capital cross of cash markets ourselves Bitcoins the an balanced the being the we're a unique more will to to that's single generate And asset. acquiring of to and going quarter, very believe then support recognized premium a whether with shareholders.And long equity, is future asset their and us that adoption. institutional both providing now in well value can macro forward.And to operating to with to in all Bitcoin the of X% they the our if as and invest compliant I'll we're use it's going their floor in I So, allow net opportunities find a debt, we yield underlying explains that, as that's set securities, as as order options, Shirish. go in crypto in hedged and tailor the ahead the well or pass and MicroStrategy or the with in a charters. of And on portfolio value opportunity going public economy, of back as proposition with it instruments exchanges going doing nutshell, economy equity to a debt useful think, investors that, short our way and

Now new we question the that as positioning the Phong. will any first company's on begin the new are elaborate and our for there Q&A, highlight? developments would Can you and like Bitcoin is to you development company,

our guess remarks development I prepared quite we talked about during extensively the Bitcoin company.

in I software think, whether perhaps, doing about the Bitcoin question and we're portion specific area. more the development any development the is

about see Corporations some talking a people ecosystem Bitcoin the half-day space. are we'll things about associated developments share will will security for on, we're working to be the some who in with in have of doing an I and area technology that excited think we're that For those new Wednesday, on of also It attending Bitcoin. Bitcoin

Bitcoin development, advocate area for that continue and share in We there's so of days. work going that couple continue and to more to on we'll experiment a in

premium the do for materially the despite remains question Bitcoin Michael. holdings and think do over equity to? has and How what recent past this expanded Next you the pullback, about towards is premium MicroStrategy's few attribute you premium, the months, Bitcoin healthy.

had would have Bitcoin a leverage a then leverage leverage, if ETF. -- But was the we start If justify if where and XX% interest paying if that I be would generated were $X XX% accretion, premium. XX% billion the leverage, at and just spot appreciating premium. no think it will small Bitcoin billion to yielding like then be we no we had we we look interest, levering more. basically leverage, at $X or We of would is a that's we

the difference yield then a it of lower, between converts is leverage, if small would more $X if when capital billion. money the or of Bitcoin you've of premium.So, when to have XX you've billion and then be and it basis and higher on we cost a be more appreciation amount definitely cost But premium, of capital. a points, converts, but Bitcoin of get leverage, So, and the leverage the the there got you lower would $X the are of a got the justifies on

that that able of Bitcoin premium, into I more issuances in financings, also then, that higher use providing able you imagine, turn, future And with billions another of when generate that you a not the no of in just to upfront, X% assets you appreciation, course, capture higher reason Bitcoin opportunities. the value. future premium us there's couldn't to leverage but years convert use structure, you're an So, capital think we premium. even strengthens do justifies corporate justifies, premium.So, that the if can unpledged for convertible could at and and the XXX% could benefits then over next it of And accretion dollars or we're issue per then to premium. thought that justifies why equity When you X year, premium justify asset or an

that. to whether of company's the what be to market. quarter, be. that's the different of once long to will not there more calculations. you do and or it time, view also time, function And, a number or quarter the if to premium that's do generate the right you I future, If as quarter, period a course, any every uncertainty ought from uncertainty think of premium an continue our to is a they often the accretion And over so about there's other or to then sentiment. X% over Ultimately, come execute into a than of market's appreciate shifting consistently makes possible what to could And it's could premium anything year, quite ability

regarding plan process and on please provide thought options can MicroStrategy color question completed XXbX-X behind And Next the Has Michael's plan. the stock sales? further already? the stock is to you plan exercise executed the

me Yes, take let Shirish, that one.

The And it know, of expire set place company, as that guess, as QX officers April. to to year. fully actually was plan, I planned put which Michael's most disclosed. option and and So, XXX,XXX last filing plan the was back our we in discloses a upfront. options, which of were directors have were which I off, XXbX-X Michael related believe this XXXX, in first exercises to received in

sold Michael not sales programmatic. And in he were were day and XX It disclosed, on and plan. April was does have completed sales X the under the on X,XXX the So, market trading each between January XXbX-X the time. executed place prices. as shares again, XXth additional the at at any plan

stake So, obviously, noting in as and chatter were the they to of expired. a holds disclosed, it's some really a put options as know on company. it's his Michael place, and around ownership do questions but been before there's And so that, worth the lot programmatic also still I simple sales, significant in

cloud and to Phong. is elaborate license AI-related We clients on take partnerships? to coming last please you This progress of are software from the the X time. of We'll converting end question here. the one for Can the

Yes.

this So with they're being and cloud our our customers the as hyperscalers one of We're year possible. with the and and aggressive as AI especially lot hyperscalers, same. partners partnerships are and our Cloud. large to A AWS, many working Microsoft, get cloud to Google pretty

on-prem noted, customers, move We represents plans. that a impact product have as because some offset cloud, Andrew we product license pretty revenue see ambitious And revenue to license and revenue time. you'll of does customers of that have incremental over the short-term

prospects transition. I'm available and through our our what long to total this in gone it'll the it's revenue AI equipped so and same, impetus the our disruption about in license only revenue. the do We're Many us well moving have for companies customers means cloud, that So, is in but move cloud, using another for product partners, the fast, excited have short-term to to term. of some

great Thank of everyone, and and afterwards. the you, address lot remarks to in Q&A questions, prepared you, received for we the tried We questions. thank and Phong, your a

remarks. So, I final the over webinar this turn the now will concludes closing the call of to Phong today. Q&A the for portion

Las appreciate really being at kind and excited forward everyone thank alike prospects, everyone. the support. MicroStrategy a X event. host to We're analysts, customers, and shareholders over to your today. to days for seeing looking partners, with also in Thanks, one this us of next I World We want Vegas

so XX:XX aren't our to Bitcoin For starts tomorrow, of online. able those which and be livestreaming those for of in here keynotes we're person, both from entirety time who you'll at to also World, Pacific a.m. be Corporations, MicroStrategy able the watch

www.microstrategy.com. to Bitcoin join. We're you're not you at strategy, you're all. details our good here invited well and forward be If as our again to enterprise with our a XX website, ever we strategy person, you and quarter all able in Thank as software both Get wish in you, look enthusiastic as weeks. to as seeing