Microstrategy Inc (MSTR) 2024 Q1 法說會逐字稿

Hello, everyone, and good afternoon. I'm 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. We assume no obligation to update these forward-looking statements, which speak only as of today.

大家好，下午好。我是 Shirish Jajodia，MicroStrategy 投資者關係和財務部副總裁。我將擔任 MicroStrategy 2024 年第一季財報網路研討會的主持人。在我們繼續之前，我將閱讀安全港聲明。我們在今天的電話會議中提供的有關我們未來期望、計劃和前景的一些資訊可能構成前瞻性陳述。由於各種重要因素，包括我們最近向 SEC 提交的 10-K 中討論的風險因素，實際結果可能與這些前瞻性陳述有重大差異。我們不承擔更新這些前瞻性聲明的義務，這些聲明僅代表今天的情況。

Also during today's call, we will refer to certain non-GAAP financial measures. Reconciliations showing GAAP versus non-GAAP results are available in our earnings release and presentation which were issued today and are available on our website at microstrategy.com.

此外，在今天的電話會議中，我們也將提及某些非公認會計準則財務指標。顯示 GAAP 與非 GAAP 結果的調整表可在我們今天發布的收益報告和簡報中找到，並可在我們的網站 microstrategy.com 上找到。

I would like to welcome you all to today's webinar and let you know that we will be taking questions using the Q&A feature at the bottom of your screen. You can submit questions throughout the webinar and Michael, Phong, or Andrew will answer questions at the end of the session.

歡迎大家參加今天的網路研討會，並讓您知道我們將使用螢幕底部的問答功能來回答問題。您可以在整個網路研討會期間提交問題，Michael、Phong 或 Andrew 將在會議結束時回答問題。

Please be sure to provide your name and your company's name when submitting your questions. Now I'll walk you through the agenda for today's call. First, Phong Le will cover the business results and the key pillars of our strategy. Second, Andrew Kang will cover the financial results for the first quarter of 2020. For then, Michael Saylor will provide a strategic review and discuss our recent bitcoin market updates. And lastly, we will open up to Q&A.

提交問題時，請務必提供您的姓名和公司名稱。現在我將向您介紹今天電話會議的議程。首先，Phong Le 將介紹業務成果和我們策略的關鍵支柱。其次，Andrew Kang 將介紹 2020 年第一季的財務表現。最後，我們將開放問答。

With that, I will turn the call over to Phong Le, President and CEO of MicroStrategy.

接下來，我將把電話轉給 MicroStrategy 總裁兼執行長 Phong Le。

Thanks, Shirish.

謝謝，希里什。

Hello, everyone.I'd like to welcome all of you to today's webinar. We're excited to be reporting live from MicroStrategy World 2024 in Las Vegas, Nevada with a packed agenda lined up for the next three days. And we're excited to see our customers, partners, analysts, shareholders and employees all in person to share a passion for BIAI. Bitcoins and Innovation Business Intelligence track tomorrow will feature my keynote presentation titled lead the data life blood flow, and we'll explore how to create more innovative, competitive, high-performing organizations by using AINBI. to make smart data more accessible to the frontline employees.

大家好。我們很高興能夠在內華達州拉斯維加斯舉行的 MicroStrategy World 2024 上進行現場報道，未來三天的議程安排得滿滿噹噹。我們很高興看到我們的客戶、合作夥伴、分析師、股東和員工都親自分享對 BIAI 的熱情。明天的比特幣和創新商業智慧專題將包括我的主題演講，題為“引領數據生命的血液流動”，我們將探討如何使用 AINBI 創建更具創新性、競爭力、高績效的組織。讓第一線員工更容易取得智慧數據。

Our Chief Product Officer, Saurabh Abhyankar, will share the latest MicroStrategy technologies for delivering convenient, flexible and reliable data within operational workflows, not just in dashboards to everyone who needs it. The keynote presentation will feature guest speakers from Microsoft, Amazon Web Services, Bayer Pharmaceuticals, the US Department of State & Glory throughout MicroStrategy World. More than top30 brands, including MassMutual, Pfizer, Fannie Mae, Victoria's Secret and NBC Universal will present how they use the MicroStrategy platform JNI and the cloud to become truly data-driven businesses.

我們的首席產品長 Saurabh Abhyankar 將分享最新的 MicroStrategy 技術，以便在操作工作流程中（而不僅僅是在儀表板中）向需要的每個人提供方便、靈活和可靠的數據。主題演講將邀請來自 Microsoft、Amazon Web Services、Bayer Pharmaceuticals、美國國務院和 Glory 的客座演講者參加 MicroStrategy World。包括 MassMutual、輝瑞、房利美、維多利亞的秘密和 NBC Universal 在內的 30 多個頂級品牌將展示他們如何使用 MicroStrategy 平台 JNI 和雲端來成為真正的數據驅動型企業。

Bitcoin for Corporations track on Wednesday and Thursday will feature notable institutions and industry luminaries, highlighting the advantages of integrating Bitcoin as a part of their corporate treasury and product offerings. It will be a unique gathering of corporations that are already adopting or looking to adopt bitcoin strategies. And we are very excited to host this event. Also, for the first time, we will livestream our world Keynote as well as all the Bitcoin for Corporations session. For those of you attending the conference here in Las Vegas, we look forward to seeing you in person.

週三和週四的企業比特幣專題將邀請著名機構和行業名人參加，強調將比特幣整合為企業財務和產品的一部分的優勢。這將是已經採用或尋求採用比特幣策略的公司的獨特聚會。我們非常高興能夠舉辦這次活動。此外，我們將首次直播我們的世界主題演講以及所有比特幣企業會議。對於那些在拉斯維加斯參加會議的人，我們期待與您見面。

Turning to the business highlights for Q1 2024. Microstrategy remains the largest corporate holder bitcoin in the world, now holding 214,400 bitcoin with a total bitcoin market value of $14 billion as of yesterday. Since December 31, 2023, we acquired an additional 25,250 Bitcoin for a total purchase cost of $1.6 billion, an average price of $65,232.

轉向 2024 年第一季的業務亮點。自 2023 年 12 月 31 日起，我們額外購買了 25,250 個比特幣，總購買成本為 16 億美元，平均價格為 65,232 美元。

This past quarter, the price of bitcoin appreciated significantly spurred notably by the approval of the spot bitcoin exchange traded products or ETPs, which has drawn considerable institutional attention. We believe the introduction of SPOT bitcoin ETPs further evidences the maturation of Bitcoin as an institutional grade asset class with broader regulatory recognition and institutional adoption. We remain highly committed to our Bitcoin strategy with a long-term focus. Andrew will provide further details on our Bitcoin purchase activity for this quarter.

上個季度，比特幣價格大幅上漲，特別是由於比特幣現貨交易所交易產品（ETP）獲得批准，引起了機構的廣泛關注。我們相信，現貨比特幣 ETP 的推出進一步證明了比特幣作為機構級資產類別的成熟，具有更廣泛的監管認可和機構採用。我們仍然高度致力於我們的比特幣策略並著眼於長期。安德魯將提供有關本季比特幣購買活動的更多詳細資訊。

Microstrategy is also positioned as the world's largest independent publicly traded business intelligence company. Our objective to grow in a I Our objective is to grow in AI. and cloud powered by iSOFT. We have over 1,800 employees focused on our software business devoted to achieving our vision of intelligence. In the first quarter of 2024, we continued to shift towards We continued our shift towards our cloud offering, resulting in subscription services revenues of $23 million, an increase of 22% year over year. Strong growth in our subscription services revenue was driven by both existing customers, migrations to the cloud and new customer wins.

Microstrategy 也被定位為全球最大的獨立上市商業情報公司。我們的目標是在 I 領域發展 我們的目標是在 AI 領域發展。以及由 iSOFT 提供支援的雲端。我們有超過 1,800 名員工專注於我們的軟體業務，致力於實現我們的智慧願景。 2024 年第一季度，我們持續轉向雲端產品，訂閱服務收入達到 2,300 萬美元，較去年同期成長 22%。我們的訂閱服務收入的強勁成長是由現有客戶、雲端遷移和新客戶贏得推動的。

Our customer renewal rate continues to remain high, and our subscription billings remain strong. Overall, we continue to see further global adoption of our cloud platform as a result of transitioning our business strategy and product offerings from an on-prem perpetual license software company to a cloud native organization.

我們的客戶續訂率持續保持高位，我們的訂閱帳單仍然強勁。總體而言，由於我們的業務策略和產品供應從本地永久授權軟體公司轉變為雲端原生組織，我們繼續看到我們的雲端平台在全球範圍內進一步採用。

Our key strategic goals in 2024 are to grow cloud, innovate with AI and increase profitability, customers can benefit from a range of innovative first to market, a high-powered functionality powered by the Azure Openet ILL. capabilities include auto sequel, which allows users to generate sequel using natural language on a dashboard which allows natural language generation and new visualizations auto answers, which allows customers to ask questions of their data sets and dashboards, auto expert, which allows users to ask questions of our MicroStrategy knowledge base and log support tickets on our website and our custom auto part, which enables the end users to access BA insights from within a customer bought standalone or embedded in any application.

我們 2024 年的關鍵策略目標是發展雲端、利用 AI 進行創新並提高獲利能力，客戶可以從一系列率先上市的創新、由 Azure Openet ILL 提供支援的高效能功能中受益。功能包括自動續集，允許用戶在儀表板上使用自然語言生成續集，允許自然語言生成和新的可視化自動答案，允許客戶詢問其數據集和儀表板的問題，自動專家，允許用戶提出問題我們的MicroStrategy知識庫並在我們的網站和客製化汽車零件上記錄支援票證，這使最終用戶能夠從獨立購買或嵌入到任何應用程式中的客戶中獲取BA 見解。

We also just launched Auto Express, which offers a simple way to trial our AI capabilities in minutes in April, MicroStrategy first became available on Google Cloud Marketplace in addition to prior deployments on Azure and AWS, allowing enterprises to easily find and deploy this cloud-native platform. Additionally, we expect to provide the ability to deploy MicroStrategy in a private cloud later this year. This will distinguish us from other BI platforms with the flexibility and automation that enterprise customers desire. We believe such investment and capability will encourage current on-premise customers to embrace the benefits of MicroStrategy. It's cloud, such as containerized architecture, proactive cloud management from experts, seamless backups and single click updates. Transitioning our customer base to the technology of the future remains a key focus and our resource deployment underscores our commitment to the cloud-first approach as customers and prospects move to the cloud to empower their AI driven digital transformations. We expect to see a continued decrease in product license revenues, which will in part be offset by increases in subscription services revenue this will be most pronounced in the balance of 2024. This may result in a decrease in total recognized revenue in the short term. But in the long run, we expect it to be more than offset by increases in subscription services revenue. Additional benefits include more engaged customers using our very latest software, higher retention rates and ultimately more recurring reps as we discussed last quarter, MicroStrategy considers itself to be the world's first bitcoin development company. We are a publicly-traded operating company committed to the continued development of the bitcoin network direct our activities in the financial markets, advocacy and technology innovation.

我們也剛推出了Auto Express，它提供了一種簡單的方法，可以在4 月的幾分鐘內試用我們的AI 功能，除了之前在Azure 和AWS 上的部署之外，MicroStrategy 還首先在Google Cloud Marketplace上提供，使企業可以輕鬆找到並部署此雲端 -原生平台。此外，我們預計今年稍後將提供在私有雲中部署 MicroStrategy 的能力。這將使我們與其他 BI 平台區分開來，並提供企業客戶所需的靈活性和自動化。我們相信，此類投資和能力將鼓勵當前的本地客戶享受 MicroStrategy 的優勢。它是雲，例如容器化架構、專家的主動雲管理、無縫備份和點擊更新。將我們的客戶群過渡到未來的技術仍然是一個關鍵焦點，隨著客戶和潛在客戶遷移到雲端以支援他們的人工智慧驅動的數位轉型，我們的資源部署強調了我們對雲端優先方法的承諾。我們預計產品授權收入將持續下降，這將在一定程度上被訂閱服務收入的成長所抵消，這在 2024 年餘下的時間裡最為明顯。但從長遠來看，我們預計訂閱服務收入的成長將足以抵消這一影響。其他好處包括更多的客戶使用我們最新的軟體、更高的保留率以及最終更多的經常性代表，正如我們上季度討論的那樣，MicroStrategy 認為自己是世界上第一家比特幣開發公司。我們是一家上市營運公司，致力於比特幣網路的持續發展，指導我們在金融市場、宣傳和技術創新方面的活動。

As an operating business, we are able to use cash flows as well as proceeds from equity and debt financing has to accumulate Bitcoin, which serves as our primary treasury reserve asset. We also bring our enterprise analytics software development capabilities to develop bitcoin applications. We believe that the combination of our operating structure between strategy and focus on technology innovation provides a unique opportunity for value creation being an operating company.

作為一家營運企業，我們能夠利用現金流以及股權和債務融資收益來累積比特幣，這是我們的主要庫存儲備資產。我們也利用我們的企業分析軟體開發能力來開發比特幣應用程式。我們相信，我們的營運結構將策略與對技術創新的關注相結合，為營運公司創造價值提供了獨特的機會。

Our software technology business remains our core revenue and cash flow generator. In addition, it also enables us to acquire bitcoin through the use of excess cash or proceeds from equity capital raises or corporate debt capital raise. These capital market levers allow us to deploy intelligent leverage to increase our Bitcoin holdings in a manner which we believe has created shareholder value. Since our adoption of our Bitcoin strategy, we've used three primary mechanisms to acquire more Bitcoin: Cash flows from software operations.

我們的軟體技術業務仍然是我們的核心收入和現金流來源。此外，它還使我們能夠透過使用多餘現金或股權資本來籌集或公司債務資本籌集的收益來獲取比特幣。這些資本市場槓桿使我們能夠部署智慧槓桿，以我們認為創造股東價值的方式增加我們的比特幣持有量。自從我們採用比特幣策略以來，我們使用了三種主要機制來獲取更多比特幣： 來自軟體營運的現金流。

Since 2020, we've invested $825 million of total cash on our balance sheet. Equity issuances, we have issued $3.2 billion in equity in a manner that we believe to be accretive to existing shareholders. And debt financing, we've issued $3.6 billion in debt through the issuance of both senior secured notes and convertible notes. We've used the proceeds from these issuances principally to purchase Bitcoin.

自 2020 年以來，我們已在資產負債表上投入了 8.25 億美元的現金。股票發行方面，我們已經發行了 32 億美元的股票，我們相信這種方式可以為現有股東帶來增值。在債務融資方面，我們透過發行優先擔保票據和可轉換票據發行了 36 億美元的債務。我們主要使用這些發行的收益來購買比特幣。

The blended cost of our outstanding debt is fixed at 1.3% annually. In the first quarter of 2024, we generated approximately $7.2 billion of incremental value from the effect of increases in the price of bitcoin on our existing bitcoin holdings as well as our strategic use of equity and debt capital market activities. We began the year with 189,150 bitcoin holdings, with a market value of approximately $8 billion. As bitcoin in prices increased from $42,500 to $71,000 by the end of the first quarter, we experienced an increase of $5.4 billion in value based on our Bitcoin holdings at the start of the year.

我們未償債務的混合成本每年固定為 1.3%。 2024 年第一季度，由於比特幣價格上漲對我們現有比特幣持有量的影響以及我們對股權和債務資本市場活動的戰略利用，我們創造了約 72 億美元的增量價值。今年年初，我們持有 189,150 枚比特幣，市值約 80 億美元。隨著第一季末比特幣價格從 42,500 美元上漲至 71,000 美元，基於年初持有的比特幣，我們的價值增加了 54 億美元。

In addition to the incremental value from the price appreciation of the bitcoin we held as of the beginning of the year, we purchased an additional $1.6 billion of bitcoin in the first quarter using proceeds from the issuance of additional equity and two convertible senior note offerings as well as excess cash from operations. As a result, we added an additional 25,128 bitcoin to our holdings an average price of roughly $65,200, which generate an incremental approximately $145 million of value from an increase in the price of bitcoin after those purchases were made through the end of the first quarter.

除了截至年初我們持有的比特幣價格升值帶來的增量價值外，我們還在第一季使用發行額外股本和兩筆可轉換優先票據發行的收益額外購買了 16 億美元的比特幣。來自營運的多餘現金。結果，我們在持有的比特幣中額外增加了25,128 個比特幣，平均價格約為65,200 美元，在第一季末購買這些比特幣後，比特幣價格上漲，產生了約1.45 億美元的增量價值。

Overall, 2024 started off as a tremendously successful year, taking into account our Bitcoin purchases and appreciation of our Bitcoin holdings year to date. While the overall market benefited from the increase in Bitcoin prices as well, we believe our opportunistic use of leverage and excess cash to acquire Bitcoin as well as our capital market strategy journey. We've generated $1.8 billion of incremental shareholder value, demonstrating our track record of generating value for our shareholders.

總的來說，考慮到我們今年迄今的比特幣購買量和比特幣持有量的升值，2024 年一開始就是非常成功的一年。雖然整體市場也受益於比特幣價格的上漲，但我們相信我們利用槓桿和多餘現金來獲取比特幣的機會主義以及我們的資本市場策略之旅。我們已經創造了 18 億美元的增量股東價值，展示了我們為股東創造價值的記錄。

This slide shows an illustrative example of how intelligent leverage can be used to boost returns when Bitcoin prices are increasing, the baseline returns of any long bitcoin strategy for spot bitcoin price appreciation, Bitcoin ETPs also benefit from this offset by the management fees that are charged for those products.

這張投影片展示了一個說明性範例，說明當比特幣價格上漲時，如何使用智慧槓桿來提高回報，現貨比特幣價格升值的任何多頭比特幣策略的基線回報，比特幣ETP 也受益於所收取的管理費的抵消對於那些產品。

Leverage provides the opportunity to generate higher returns if the price increases. In this illustration, assuming bitcoin price reaches $250,000, keeping bitcoin count constant spot bitcoin without leverage would return approximately 290%. In this example, adding leverage to acquire more Bitcoin, we return to be between approximately 395% to 425%, depending on the amount of leverage, further boosting returns compared to simply holding spot Bitcoins.

如果價格上漲，槓桿提供了產生更高回報的機會。在此圖中，假設比特幣價格達到 250,000 美元，保持比特幣數量不變，不使用槓桿的現貨比特幣將獲得約 290% 的回報。在這個例子中，增加槓桿來獲取更多比特幣，我們的回報率大約在 395% 到 425% 之間，具體取決於槓桿的大小，與簡單持有現貨比特幣相比，進一步提高了回報。

If the market value of our Bitcoin increases, we believe this would create more opportunities to manage our leverage targets. We have the opportunity to take on more leverage in a prudent risk manage fashion. The value generated from our increasing bitcoin holdings would be expected to outperform even further if Bitcoin prices continue to rise, we believe our unique value proposition as the world's first bitcoin development company has enabled us to generate tremendous value for our shareholders.

如果我們的比特幣市場價值增加，我們相信這將為管理我們的槓桿目標創造更多機會。我們有機會以審慎的風險管理方式利用更多槓桿。如果比特幣價格繼續上漲，我們增加的比特幣持有量所產生的價值預計將進一步超越，我們相信，作為世界上第一家比特幣開發公司，我們獨特的價值主張使我們能夠為股東創造巨大的價值。

I'll now turn the call over to Andrew to discuss our financials for the quarter in further detail.

我現在將把電話轉給安德魯，進一步詳細討論我們本季的財務狀況。

Thank you, Phong. I'll start with first a recap of our software financial results. For the first quarter, total revenues were $115.2 million, which was down about 5% year over year, consistent with prior recent quarters. The slight decline remains in part due to our ongoing shift of revenue from on-prem to cloud Q1 on prem product license revenues, which make up about 11% of total revenue were about $12.9 million, which was down 26% year over year as I mentioned in prior calls, we continue to transition our business to the cloud, and we fully anticipate lower product license revenues to continue as we migrate existing customers of on-prem licenses and bring them on to the cloud. More importantly, as Phong mentioned earlier, we continue to grow subscription services revenues, which reflect stronger, more durable recurring software revenue in Q1. Subscription services revenues, which now make up about 20% of total revenues, $23 million, which reflects an increase of 22% year over year.

謝謝你，馮。我首先回顧我們的軟體財務表現。第一季總營收為 1.152 億美元，年減約 5%，與最近幾季的情況一致。略有下降的部分原因是我們的收入持續從本地轉移到雲端 第一季本地產品授權收入約佔總收入的 11%，約為 1290 萬美元，同比下降 26%，因為我在之前的電話會議中提到，我們將繼續將業務轉移到雲，我們完全預計，隨著我們將現有客戶的本地許可證遷移到雲端，產品授權收入將繼續下降。更重要的是，正如 Phong 先前提到的，我們的訂閱服務收入持續成長，這反映出第一季更強勁、更持久的經常性軟體收入。訂閱服務收入目前約佔總收入的 20%，達到 2,300 萬美元，年增 22%。

Non-GAAP subscription billings, which represent new cloud bookings in the quarter also grew by 30% in the first quarter to $17.7 million, which is our fourth straight year of quarterly double-digit growth in cloud bookings. Q4 last year was an important milestone for us and the progress toward cloud transition, where for the first time, our subscription services revenues higher than our product license revenue this successful trend continued in the first quarter of 2024, which reflects the ongoing progress towards converting our revenue to recurring subscription services.

非 GAAP 訂閱帳單（代表本季新的雲端預訂）在第一季也成長了 30%，達到 1,770 萬美元，這是我們雲端預訂季度兩位數成長的連續第四年。去年第四季對我們來說是一個重要的里程碑，也是我們向雲端轉型取得進展的一個重要里程碑，我們的訂閱服務收入首次高於我們的產品授權收入，這一成功趨勢在2024 年第一季度得以延續，這反映了雲端轉型的持續進展我們的收入來自定期訂閱服務。

The mix of revenue will continue to shift from on-premise product license to subscription services throughout 2024 as we focus on delivering meaningful AI based products to our customers, which is only available in the cloud, we are pleased with the progress we have made from the adoption from our customers to our cloud platform worldwide, and we still have more to do and we'll continue to focus on new products and innovation to drive more demand in that.

到 2024 年，收入組合將繼續從本地產品授權轉向訂閱服務，因為我們專注於向客戶提供有意義的基於人工智慧的產品，這些產品只能在雲端中使用，我們對我們所取得的進展感到滿意我們的客戶在全球範圍內採用我們的雲端平台，我們還有更多工作要做，我們將繼續專注於新產品和創新，以推動更多需求。

Yes, beginning with the first quarter of 2024, we modified our reported financials to break out our Q2 quarterly results into two categories. First, the software business category reflects income or loss from operations related distinctly to our enterprise BI software business. And the corporate and other category reflects the other non-software related components associated with our Digital Asset Holdings, which include impairment charges and other related third-party costs.

是的，從 2024 年第一季開始，我們修改了報告的財務數據，將第二季的季度業績分為兩類。首先，軟體業務類別反映了與我們的企業 BI 軟體業務密切相關的業務的收入或損失。公司和其他類別反映了與我們的數位資產控股相關的其他非軟體相關組成部分，其中包括減損費用和其他相關第三方成本。

While we continue to operate under one reportable operating segment, which is engaged in design development and sales of our software platform or platform through licensing arrangements, cloud subscriptions and related services. We believe this breakout of our operating results into these two categories provides better transparency with respect to the performance of our software business, while isolating the impacts related to changes in Bitcoin prices. In Q1, the software business revenues were $115 million as mentioned a moment ago, while the cost of revenues were $30 million, up seven four 7.4% compared to Q1 of last year.

同時，我們繼續在一個可報告營運分部下運營，該分部透過許可安排、雲端訂閱和相關服務從事我們的軟體平台或平台的設計開發和銷售。我們相信，將我們的經營績效分為這兩類可以為我們的軟體業務績效提供更好的透明度，同時隔離與比特幣價格變化相關的影響。剛才提到的第一季度，軟體業務收入為1.15億美元，而收入成本為3,000萬美元，比去年第一季成長了七、四7.4%。

The increase in costs were in part due to higher cloud hosting a result of higher usage by new and existing cloud subscription services. Customers was also attributed to costs associated with standing up an enhanced customer success function with an added focus on transitioning customers to our cloud platform. In addition to servicing and managing our strong existing customer base. Software business, operating expenses were $96.1 million, up 1.7% compared to $94.5 million in Q1 of last year.

成本增加的部分原因是新的和現有的雲端訂閱服務的使用率增加導致雲端託管量增加。客戶還歸因於與建立增強的客戶成功功能相關的成本，並更加重視將客戶轉移到我們的雲端平台。除了服務和管理我們強大的現有客戶群之外。軟體業務營運支出為 9,610 萬美元，較去年第一季的 9,450 萬美元成長 1.7%。

The increase was primarily due to higher G&A expenses this quarter, which was specifically related to an increase in employer paid payroll taxes and content in connection with employee stock option exercises in the first quarter. However, overall operating expenses were also offset by lower costs in sales, marketing and R&D, also consistent with recent quarters as we maintained strong discipline and expenses, and we continue to optimize overall headcount.

這一增長主要是由於本季度的一般管理費用增加，特別是與第一季雇主支付的工資稅和與員工股票選擇權行使相關的內容的增加有關。然而，整體營運費用也被銷售、行銷和研發成本的降低所抵消，這與最近幾季的情況一致，因為我們保持了嚴格的紀律和費用，我們繼續優化整體員工人數。

Non-cash stock-based compensation expense was mostly flat year-over-year at $17.8 million for the quarter. And overall non-GAAP adjusted operating income or profit from the software business category was $6.9 million. If you take into account the employer-paid payroll taxes related to stock option exercises in Q1, which were not material in prior periods, non-GAAP adjusted operating income from the core software business would have reflected $14.3 million for the first quarter, more appropriately reflecting the quarter's profitable profitability from our software business.

本季非現金股票薪酬支出與去年同期基本持平，為 1,780 萬美元。軟體業務類別的非 GAAP 調整後營業收入或利潤總體為 690 萬美元。如果考慮到第一季與股票選擇權行使相關的雇主支付的工資稅（這在之前的會計期間並不重要），那麼核心軟體業務的非公認會計原則調整後的營業收入將反映第一季的1,430萬美元，更合適反映了我們軟體業務本季的獲利能力。

Lastly, the corporate and other operating expense category for the quarter is almost entirely attributable to Bitcoin impairment charges, which were $192 million compared to $20 million in Q1 of last year. The result of bitcoin price fluctuations throughout this past Okay. Turning to our Bitcoin strategy, more specifically, we had one of the most successful quarters of adding more bitcoin to our balance sheet as we acquired 25,128 Bitcoins in the first quarter, our second largest single quarter increase in bitcoin holdings since Q4 2020.

最後，本季的公司和其他營運支出類別幾乎完全歸因於比特幣減損費用，該費用為 1.92 億美元，而去年第一季為 2,000 萬美元。過去一段時間比特幣價格波動的結果好嗎。更具體地說，談到我們的比特幣策略，我們在資產負債表上添加了更多比特幣，這是最成功的季度之一，我們在第一季購買了25,128 個比特幣，這是自2020 年第四季以來我們比特幣持有量第二大單季增幅。

Additionally, after the end of the first quarter, we purchased an additional 122 Bitcoins using $8 million of excess cash. And as of as of April 26, 2024, company held a total of 214,400 Bitcoins acquired for an aggregate cost of $7.54 billion, we're at $35,180.

此外，第一季末後，我們使用 800 萬美元的多餘現金額外購買了 122 個比特幣。截至 2024 年 4 月 26 日，該公司總共持有 214,400 枚比特幣，總成本為 75.4 億美元，目前價格為 35,180 美元。

To break down the big point acquisition activity year to date by entity, Bitcoin acquired the proceeds from equity capital markets activities that occurred after the issuance of our senior secured notes are held at MicroStrategy, a wholly owned subsidiary of MicroStrategy. Year to date, we have added 2,652 Bitcoins to macro strategies holdings at an aggregate purchase price of $137 million using net proceeds from our at-the-market or ATM equity issuance programs in February. Currently, we hold 175,721 unencumbered Bitcoins representing 82% of our total holdings for $11.2 billion in current market value, which are held at macro strategies. These are all unrestricted and provide the option to potentially leverage this strategic asset in the future.

為了按實體細分今年迄今的重大收購活動，比特幣收購了在 MicroStrategy（MicroStrategy 的全資子公司）發行我們的優先擔保票據後發生的股權資本市場活動的收益。今年迄今為止，我們已使用 2 月份市場或 ATM 股票發行計劃的淨收益，以 1.37 億美元的總購買價格向宏觀策略持有了 2,652 枚比特幣。目前，我們持有 175,721 枚未支配的比特幣，占我們總持有量的 82%，當前市值為 112 億美元，這些比特幣是按照宏觀策略持有的。這些都是不受限制的，並提供了未來可能利用這項戰略資產的選擇。

Bitcoins acquired through proceeds from debt activities that occurred after the issuance of our senior secured notes, namely the two recent convertible note issuances in Q1 or held at MicroStrategy, the parent and also serve as collateral securing our 2028 senior secured notes. Year to date, we have added 20,180 Bitcoins to MicroStrategy's Holdings had an aggregate purchase price of $1.4 billion using net proceeds from our two convertible note issuances in March.

比特幣是透過我們的優先擔保票據發行後發生的債務活動所得收益獲得的，即第一季最近發行的兩筆可轉換票據或母公司MicroStrategy 持有的比特幣，也可作為我們2028 年優先擔保票據的抵押品。今年迄今為止，我們已使用 3 月發行的兩次可轉換票據的淨收益向 MicroStrategy's Holdings 添加了 20,180 個比特幣，總購買價為 14 億美元。

Lastly, Bitcoins purchased through excess cash from the software business. It also held at MicroStrategy, the parent entity and also collateralize our 2028 senior secured notes. Year to date, we have added 2,418 Bitcoins to MicroStrategy's holdings at an aggregate purchase price of $136 million using proceeds from excess cash as of April 26. There are in total 38,679 Bitcoins held at MicroStrategy or $2.4 billion in current market value.

最後，透過軟體業務的多餘現金購買比特幣。它還由母公司 MicroStrategy 持有，並為我們的 2028 年優先擔保票據提供抵押。今年迄今，我們已使用截至4 月26 日的超額現金收益，以1.36 億美元的總購買價向MicroStrategy 持有的比特幣增加了2,418 枚比特幣。為24 億美元。

Commitment to our Bitcoin strategy remains unchanged and steadfast and we plan to strategically and opportunistically buy more Bitcoin as we have in every quarter since August of 2020, using excess cash from operations and proceeds from any capital markets activities MicroStrategy remains the largest corporate holder of bitcoin in the world, and we remain committed to our Bitcoin acquisition strategy with the utmost conviction, long-term focus and with a strong risk-managed approach as a Bitcoin development company and the unique ability to access the capital markets and the positive impact from using intelligent leverage are illustrated on this slide.

對我們的比特幣策略的承諾保持不變和堅定，我們計劃利用來自營運的多餘現金和任何資本市場活動的收益，策略性地、機會主義地購買更多比特幣，就像自2020 年8 月以來的每個季度一樣。使用比特幣所帶來的正面影響，致力於我們的比特幣收購策略。

During the first quarter of 2024. Our total bitcoin holdings increased by 13.3% during the same period. Our total basic share count comprised of total basic Class A. shares outstanding and total basic Class B shares outstanding increased by only 4.6%. This is in part due to the deferred dilution impact of leveraging convertible debt and our opportunistic execution of these financings, which has resulted in tremendous value creation for our shareholders.

2024 年第一季。我們的基本股總數（包括已發行的基本 A 類股總數和已發行的基本 B 類股總數）僅增加了 4.6%。這在一定程度上是由於利用可轉換債務的遞延稀釋影響以及我們對這些融資的機會主義執行，這為我們的股東創造了巨大的價值。

The difference between our Bitcoin accretion and the share dilution is representative of the yield we were able to generate for our shareholders as it bitcoin development company. Hypothetically, assuming all outstanding convertible notes are fully converted at their respective conversion prices, all outstanding options are fully exercised and all restricted stock units performance stock units fully vest, the fully-diluted share count would have increased by only 4.8% during the first quarter, plus the increase in our Bitcoin holdings has outpaced the increase in our total share counts in Q1.

我們的比特幣增值和股票稀釋之間的差異代表了我們作為比特幣開發公司能夠為股東創造的收益。假設，假設所有已發行可轉換票據均以各自的轉換價格完全轉換，所有未發行選擇權均已完全行使，所有限制性股票單位績效股票單位均已完全行使，則第一季完全稀釋股份數量僅增加4.8% ，加上我們第一季比特幣持有量的增加超過了我們總股數的增加。

Turning to slide 15, Bitcoin has significantly outperformed most other asset classes year to date. As of March 31, 2024, the aggregate cost of our Bitcoin purchases were $ 7.5 billion versus the carrying value of our Bitcoin holdings of $5.1 billion. This is compared to the market value of our holdings of $15.2 billion based on the bitcoin price as of the last day of the quarter.

轉向幻燈片 15，比特幣今年迄今的表現明顯優於大多數其他資產類別。截至 2024 年 3 月 31 日，我們購買比特幣的總成本為 75 億美元，而我們持有的比特幣帳面價值為 51 億美元。與此相比，根據截至本季最後一天的比特幣價格，我們持有的市值為 152 億美元。

Currently in the market, value of our Bitcoin holdings is significantly above our average cost basis, which is equal to an average purchase price of approximately $35,200. The new accounting rule that was approved by the FASB last December requires companies holding digital assets, including bitcoin to adopt fair value accounting treatment by Q1 of 2025. We fully plan to plan to adopt the change by when the rule takes effect and we are determining when the most appropriate time to do so.

目前在市場上，我們持有的比特幣價值遠高於我們的平均成本基礎，相當於平均購買價格約為 35,200 美元。 FASB 去年12 月批准的新會計規則要求持有包括比特幣在內的數位資產的公司在2025 年第一季之前採用公允價值會計處理。正在確定當最合適的時候這樣做。

Now turning to our capital markets activities. Since the inception of our Bitcoin strategy, we have issued $3.6 billion of corporate debt through senior secured notes and convertible notes with a very attractive blended interest rate of approximately 1.3% with staggered maturities over several years through March 2031. Leverage remains a key component of our active capital allocation strategy, which when opportunistically deployed, enables us to add more bitcoin holdings at an attractive cost. Our two recent convertible note financings were both upsized and well received by the market.

現在轉向我們的資本市場活動。自從我們的比特幣策略啟動以來，我們已透過優先擔保票據和可轉換票據發行了36 億美元的公司債務，混合利率約為1.3%，非常有吸引力，並且在截至2031 年3 月的幾年內分期到期。我們最近的兩次可轉換票據融資規模均有所擴大，並受到市場的好評。

We issued $800 million of convertible notes due March 2030 at an annual interest rate of 0.625% and a conversion premium of 42.5%. The closing price of our Class A. common stock on the pricing day reflecting a conversion price of approximately $1,498 per share. The following week, given the strong rally in MSTR stock price, we were able to access the market again in a follow-on offering and issued an additional $603.75 million of convertible notes due March 2031 at an annual interest rate of 0.875%, a conversion premium of 40% to the volume weighted average price of our Class A. common stock on the pricing day any conversion price of approximately $2,327 per share.

我們發行了 8 億美元的可轉換票據，將於 2030 年 3 月到期，年利率為 0.625%，轉換溢價為 42.5%。我們 A 類普通股在定價日的收盤價反映了每股約 1,498 美元的轉換價格。接下來的一周，鑑於 MSTR 股價的強勁上漲，我們能夠在後續發行中再次進入市場，並額外發行了 2031 年 3 月到期的 6.0375 億美元可轉換票據，年利率為 0.875%，轉換為與我們A 類普通股在定價日的成交量加權平均價格相比溢價40%，轉換價格約為每股2,327 美元。

Net proceeds from both convertible note issuances were used expeditiously to acquire additional Bitcoin. In addition to raising debt. We continue to demonstrate a solid track record of issuing permanent equity in a manner that we believe is accretive to shareholders. Since the third quarter of 2021, we have raised a total of $3.2 billion in proceeds through our ATM offerings with an average price of approximately $464 per share across total equity raise.

兩次可轉換票據發行的淨收益均迅速用於購買額外的比特幣。除了舉債外。我們繼續展示以我們認為對股東有利的方式發行永久股本的良好記錄。自 2021 年第三季以來，我們透過 ATM 發行籌集了總計 32 億美元的收益，總股本籌集的平均價格約為每股 464 美元。

As we have done in the past, we will continue to actively monitor the capital markets. We carefully evaluate the most accretive use of the capital markets to drive incremental value for our shares. Debt financing helps us maintain healthy leverage relative to the market value of our Bitcoin holdings and raising equity helps us to deleverage our balance sheet and when needed. The primary use of proceeds from our debt and equity capital activities to date have been to acquire additional business, which we have done in a manner we believe to be extremely accretive. Our overall capital allocation strategy continues to be focused on increasing our total bitcoin holdings while managing our debt very closely and prudent.

正如我們過去所做的那樣，我們將繼續積極監測資本市場。我們仔細評估資本市場最增值的用途，以推動我們股票的增值。債務融資有助於我們相對於所持有比特幣的市場價值保持健康的槓桿率，而籌集股本有助於我們在需要時降低資產負債表的槓桿率。到目前為止，我們的債務和股權資本活動所得收益的主要用途是收購額外業務，我們認為這樣做會帶來極大的增值。我們的整體資本配置策略繼續專注於增加我們的比特幣總持有量，同時非常密切和審慎地管理我們的債務。

Lastly, as of the end of the first quarter, we grew unrestricted cash and cash equivalents on our balance sheet to $81.3 million, and we continue to maintain more than sufficient overall liquidity to manage our ongoing operating needs.

最後，截至第一季末，我們資產負債表上不受限制的現金和現金等價物增加至 8,130 萬美元，我們繼續保持充足的整體流動性來管理我們持續的營運需求。

The next slide illustrates our debt maturity profile. And as you can see, the nearest maturity is more than six quarters away and not until late 2025, while the 2025 convertible notes have been trading well in the market. As we have said previously, we continue to monitor the markets and evaluate liability management opportunity opportunities in order to manage our debt as well as opportunities to raise additional financing in the future.

下一張投影片說明了我們的債務到期。正如您所看到的，距離最近的到期日還有六個多季度，而且要到 2025 年末才能到期，而 2025 年可轉換票據在市場上一直交易良好。正如我們之前所說，我們將繼續監控市場並評估負債管理機會，以管理我們的債務以及未來籌集額外融資的機會。

The management team has demonstrated a strong track record of disciplined approach to navigate through volatile times in the bitcoin market, and we believe we have established significant credibility to execute on our strategic goal of generating value for our shareholders. As sponsored earlier, we believe that the combination of our operating structure, Bitcoin strategy and focus on technology innovation provides a unique value proposition for shareholder value creation when compared to other forms of exposure at bitcoin.

管理團隊在比特幣市場的動盪時期展現了良好的紀律性，我們相信我們已經建立了良好的信譽來執行為股東創造價值的策略目標。正如之前贊助的那樣，我們相信，與其他形式的比特幣投資相比，我們的營運結構、比特幣策略和對技術創新的關注相結合，為股東價值創造提供了獨特的價值主張。

Thank you for your time today and for your continued support of MicroStrategy. I'll now turn the call over to Michael for his.

感謝您今天抽出時間並感謝您對 MicroStrategy 的持續支持。我現在將電話轉給邁克爾。

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

謝謝你，安德魯，也謝謝大家今天和我們在一起。在 Phong 獲獎之後，我想就我們的策略和比特幣總體情況添加一些評論。安德魯，我將從我們的績效記分卡開始，我們希望每個季度都記錄分數，並根據所有相關基準評估自己。

So I think this slide is very instructive. What you can see here in a nutshell, is all of the enterprise software companies that we compete against in the Business Intelligence business and their performance. Since we embarked on our Bitcoin strategy in the summer of 2020 and you can see we're approximately 10x to 30x more and performance than any of those companies. You can see all the big tech stocks over the last three and three quarters of years and the strongest one is Google, and we've outperformed them anywhere by a factor of eight to two 80, and we're very pleased with that.

所以我認為這張投影片非常有啟發性。簡而言之，您在這裡可以看到我們在商業智慧業務中與之競爭的所有企業軟體公司及其績效。自從我們在 2020 年夏天開始實施比特幣策略以來，您可以看到我們的產量和業績比任何一家公司高出約 10 倍到 30 倍。你可以看到過去三到三個季度的所有大型科技股，其中最強勁的是谷歌，我們在任何地方的表現都比它​​們高出八到二個80，我們對此非常滿意。

But of course, our primary strategy is a Bitcoin strategy. And so I think to understand why is MicroStrategy able to return 937% in a period when the S&P returned 52%. And then I think we just have to start with the idea of what's the right treasury strategy or how do you capitalize the company. And you can see if you capitalize the company on bonds. Bonds have a negative 21% return over this timeframe. Bonds have a negative real yield and not returning the cost of capital. The best surrogate for the cost to capital, I think is the S & P index, the 52%.

當然，我們的主要策略是比特幣策略。因此，我想理解為什麼 MicroStrategy 能夠在標準普爾指數回報率 52% 的時期實現 937% 的回報率。然後我認為我們必須從正確的財務策略或如何利用公司資本的想法開始。您也可以查看是否透過債券對公司進行資本化。在此期間，債券的回報率為負 21%。債券的實際收益率為負，且無法收回資本成本。我認為資本成本的最佳替代指標是標準普爾指數，即 52%。

And so if you are able to capitalize your company on the S&P index, you could maybe keep up with the cost of capital where you can see here is that that gold and silver don't really work as the money supply expands the S&P index tracks it and gold silver and bonds underperform NASDAQ is is pretty close. Statistical Pei Wei is bitcoin better because MicroStrategy's performance is really based on Bitcoin performance to start and I think decline illustrates a couple of principles.

因此，如果您能夠在標準普爾指數上利用您的公司，您也許可以跟上資本成本，您可以在這裡看到，隨著貨幣供應量擴大，標準普爾指數跟踪黃金和白銀並沒有真正發揮作用它與黃金、白銀和債券跑輸納斯達克的表現相當接近。統計裴偉認為比特幣比較好，因為 MicroStrategy 的表現其實是基於比特幣的表現來開始的，我認為下降說明了幾個原則。

One is digital is better than analog. Bitcoin is digital property and it's digital. So so Bitcoin is outperforming because it's digital in a world of digital transformation. I think the second thing it illustrates is a commodity is better than a security and Bitcoin as an asset without an insurer, which makes it a global asset and security will never be a global asset because it because security has an issue or an issuer as a company and a company has an access and a country and has an operation. So their clients perform well because it's digital because it's a commodity.

一是數字優於類比。比特幣是數位財產，而且是數位的。因此，比特幣之所以表現出色，是因為它在數位轉型的世界中是數位化的。我認為它說明的第二件事是商品比證券更好，而比特幣作為一種沒有保險公司的資產，這使其成為全球資產，而證券永遠不會成為全球資產，因為它因為證券有問題或發行人作為公司和公司有一個訪問權限和一個國家並有一個業務。所以他們的客戶表現良好，因為它是數位化的，因為它是一種商品。

And the third thing this illustrates is that scarcity is better than our commodity. So the fact is yes, Bitcoin is commodity, but its hard cap at $21 million and the gold is not hard capped, and silver is not hard caps or commodities generally make very very poor investments. The world has learned to invest in market baskets of securities like the S&P index, but but it would be the wrong lesson to say that therefore, securities rather than commodities securities have their own risk factors.

這說明的第三件事是，稀缺性比我們的商品好。所以事實是，比特幣是商品，但其硬上限為 2,100 萬美元，而黃金沒有硬上限，白銀也不是硬上限，或者大宗商品通常是非常糟糕的投資。世界已經學會了投資像標準普爾指數這樣的證券市場籃子，但如果說證券而不是商品證券有其自身的風險因素，那就是錯誤的教訓。

The right lesson to take away is that, Tom, is that something digital is better than something analog, something scarce is better than something abundant and something global is better than something. Local and decline represents all of those things in the last four years and has emerged and the Western world as that global digital scares commodity, i.e., digital property. Now at MicroStrategy, if it'd just simply adopted Bitcoin, purely perhaps it would have had the same performance as Bitcoin, but how do we actually outperformed decline I think the key here is volatility is a benefit to us.

湯姆，我們要學到的正確教訓是，數位化的東西比類比的東西好，稀缺的東西比豐富的東西好，全球性的東西比東西好。本地化和衰落代表了過去四年中的所有這些事情，並且已經在西方世界成為全球數位恐懼商品，即數位財產。現在在 MicroStrategy，如果它只是簡單地採用比特幣，純粹也許它會具有與比特幣相同的性能，但我們如何真正跑贏下跌我認為這裡的關鍵是波動性對我們有利。

And so we have harnessed volatility, and we've also harnessed our unique ability to issue securities such as convertible bonds and the fact that we embrace the securitization of Bitcoin and we embrace the volatility of the asset class has given us the ability to raise capital, right as you as you recall on, we've raised billions of dollars of equity capital and billions of dollars of debt capital. We wouldn't have been able to raise as much capital without volatility fund.

因此，我們利用了波動性，也利用了我們發行可轉換債券等證券的獨特能力，而且我們接受比特幣證券化和資產類別的波動性這一事實使我們有能力籌集資金正如您所記得的那樣，我們已經籌集了數十億美元的股本和債務資本。如果沒有波動性基金，我們就無法籌集那麼多資金。

And you could see with our convertible bonds, we managed to raise $3 billion in convertible bonds at substantially less than 1%. Interest, really about 50 basis points at 5% interest. So MicroStrategy's performance is being driven by two things. First, we're raising $3 billion at 0.5%. And instead of paying a non-volatile interest rate, non-volatile could be 8% to 10%. So instead of paying a 10% interest, we're paying 5%. So clearly, that's a big performance boost us. And the second is if we were nonvolatile and we didn't have an asset rich strategy, we couldn't raise the $3 billion at all because of a lot of times senior debt would be capped at some EBITDA, multiple of some sort so it would be we would have access to a small amount of capital at a high cost of capital.

你可以看到，透過我們的可轉換債券，我們成功以遠低於 1% 的利率籌集了 30 億美元的可轉換債券。利息，實際上是5%的利息，大約是50個基點。因此，MicroStrategy 的性能由兩件事驅動。首先，我們將以 0.5% 的利率籌集 30 億美元。而且，非波動性利率可以是 8% 到 10%，而不是支付非波動性利率。因此，我們不再支付 10% 的利息，而是支付 5%。很明顯，這對我們的性能有很大的提升。第二個是，如果我們是非波動性的，而且我們沒有資產豐富的策略，我們根本無法籌集 30 億美元，因為很多時候優先債務的上限是某個 EBITDA，某種倍數，所以它我們將以高資本成本獲得少量資本。

So MicroStrategy's got a very low cost of capital and access to a lot of capital because of our particular strategy. But we're capitalizing on what clearly is the best capital asset decline in the world over this period. And the combination of those two things is what catapulted us to that 937% performance.

因此，由於我們的特殊策略，MicroStrategy 的資本成本非常低，並且可以獲得大量資本。但我們正在利用這段時期世界上明顯最好的資本資產下降。這兩件事的結合使我們達到了 937% 的性能。

And we'll go the next slide now. And I would say this quarter, the first quarter of 2024. It's the end of the crypto childhood or the crypto cowboy era where you had it had 15 years of lots of confusion, chaos and jockeying of thousands and thousands of crypto assets?

現在我們將轉到下一張投影片。我想說的是這個季度，即 2024 年第一季。

Well, Bitcoin is the winner and it is the one iMergent institutional asset that has come out of that 15 years decline. Spot ETFs were approved in January of this quarter, and that was a very big milestone. And as we as we go into this next quarter, it's pretty clear that Bitcoin is the only crypto asset that's going to be approved for for sale on the form of a spot ETF in the United States. And so Bitcoin is very unique. It is the one crypto asset that has been embraced as an institutional asset. It's the one. It's the one crypto asset that a publicly traded company can hold on its balance sheet can capitalize upon.

好吧，比特幣是贏家，它是 iMergent 走出 15 年衰退的一種機構資產。現貨 ETF 於本季 1 月獲得批准，這是一個非常重要的里程碑。當我們進入下一個季度時，很明顯，比特幣是唯一被批准在美國以現貨 ETF 形式出售的加密資產。所以比特幣非常獨特。它是一種被視為機構資產的加密資產。就是這個。這是上市公司可以在其資產負債表上持有並利用的一種加密資產。

It's the one crypto asset, the Wall Street firms are going to be able to sell on a spot ETF basis, the entire the entire modern institutional asset economy, the options market, the securities market, the money manager system, the the institutional mutual funds, the institutional ETFs, they're all going to be centered around that client as the digital property going forward. And so while or at the end of the beginning. You know, we're now, I would say at the beginning of the middle or at the beginning of the stage of rapid institutional adoption of digital property and form a big point. This chart shows then at the end of the first stage and Bitcoin is a bit more than a trillion dollar asset.

這是唯一加密資產，華爾街公司將能夠以現貨 ETF 為基礎出售整個現代機構資產經濟、選擇權市場、證券市場、資金管理系統、機構共同基金、機構ETF，它們都將作為未來的數位資產以客戶為中心。所以在開始的同時或結束時。你知道，我想說，我們現在正處於數位財產快速機構採用階段的中期或開始階段，並形成一個重要點。圖表顯示，在第一階段結束時，比特幣的資產略高於一兆美元。

And from this stage forward, it won't really compete against other crypto assets and will compete against gold, Art equities, real estate bonds and on other other types of store of value money and in wealth creation, wealth preservation and the capital markets. And as you can see, if you look at this chart, probably some number between 10% and 50% of all this wealth is really just pure capital. The use cases, store of value on many people buy equities, real estate bonds and arts and other monetary instruments as a store of value just like they buy gold as a store of value. Bitcoin is digital.

從這個階段開始，它不會真正與其他加密資產競爭，而是與黃金、藝術品股票、房地產債券和其他類型的價值儲存貨幣以及財富創造、財富保值和資本市場競爭。正如您所看到的，如果您查看此圖表，可能所有這些財富中 10% 到 50% 之間的某個數字實際上只是純粹的資本。價值儲存的用例是，許多人購買股票、房地產債券、藝術品和其他貨幣工具作為價值儲存，就像他們購買黃金作為價值儲存一樣。比特幣是數位化的。

Property is a store of value, but it's the emerging high performance, high volatility, high functionality, high utility store of value, and it's global. So we actually think that it's going to continue to grow from here and it and this is kind of the second quarter have about a 40 quarter Bitcoin Gold Rush where we are going to see big clients embraced by more and more banks more and more money managers more and more nations. You'll see more bitcoin ETFs in Hong Kong and Australia. You'll see more derivative products and other types of related products built on top of that or you'll see it built into more things. And so then the next decade we think is auspicious.

房地產是一種價值儲存手段，但它是新興的高性能、高波動性、高功能性、高實用價值儲存手段，而且是全球性的。因此，我們實際上認為它將從現在開始繼續增長，第二季度將出現大約 40 個季度的比特幣淘金熱，我們將看到越來越多的銀行和越來越多的基金經理接受大客戶越來越多的國家。您將在香港和澳洲看到更多比特幣 ETF。您將看到更多的衍生產品和其他類型的相關產品建立在其之上，或者您將看到它內建到更多的東西中。所以我們認為下一個十年是吉祥的。

We'll go to the next slide and the having just took place a week ago and a couple of weeks ago and on April 19th, I guess specifically. And when you consider the impact of the having it's pretty profound. First of all, it reminds us that Bitcoin is scarcity and not a digital commodity online because bitcoin supply is asymptotically approaching 21 million. As of now, Bitcoin has the highest stock flow ratio in the world. So it is the hardest investment asset in the world and the most scarce or or certain are in the first quarter, about 26 hundred bitcoin a day were acquired by the spot ETFs that were launched.

我們將轉到下一張投影片，我想具體是在一周前、幾週前和 4 月 19 日發生的。當你考慮到它的影響時，它是相當深遠的。首先，它提醒我們，比特幣是稀缺性的，而不是在線數位商品，因為比特幣的供應量已漸近接近2100萬。截至目前，比特幣擁有全球最高的存量流通比率。所以它是世界上最難投資的資產，也是最稀缺的，或者說是肯定的，第一季度，推出的現貨ETF每天大約有2600個比特幣被購買。

And during that timeframe, we had about 900 Bitcoins per day sold by miners. But then following that, having on the 19th of April, we moved to 450 bitcoin a day from available from natural sellers. The miners on this is pretty critical. And you can see there is there is an imbalance between organic demand and organic supply. I don't think that having us priced and I don't think that the market fully appreciates just how profound this is.

在此期間，礦工每天出售約 900 個比特幣。但此後，從 4 月 19 日起，我們從自然賣家獲得的比特幣數量增加到了每天 450 個比特幣。礦工們對此非常批評。你可以看到有機需求和有機供應之間存在不平衡。我不認為我們定價，也不認為市場充分認識到這一點的意義有多大。

But this the chart on the right gives you a way to think of it, which is if a large investor, a sovereign wealth fund or a mega institutional investor decided that they wanted to buy 450 bitcoin per day and they were going to buy it at the market price of decline every day for the next four years. Assuming the price of bitcoin stayed constant at $60,000, they would have to invest $39.4 billion of capital but have Bitcoins price moved up at $100,000, it's a $65 billion commitment at $150,000 is a $98 billion dollars commitment.

但右邊的圖表為您提供了一種思考方式，即如果一個大型投資者、主權財富基金或大型機構投資者決定他們想要每天購買 450 比特幣，並且他們將在以下價格購買：在接下來的四年裡，市場價格每天都在下降。假設比特幣的價格保持在 60,000 美元不變，他們將不得不投資 394 億美元的資本，但如果比特幣價格上漲到 100,000 美元，則承諾投資 650 億美元，150,000 美元則承諾投資 980 億美元。

And if the average price of bitcoin in that timeframe is $250,000. That's the same as $164 billion of capital being put into this network. So the network was chopping along at 900 BTC. a day before the halving. But after that, having you just have a very reflexive protocol change, that then is is going to remove 450 Bitcoins per day for sale at any price for the next four years. And of course, not another having four years from now that will remove another 225 bitcoin a day from the supply. And there will be another having four years after that to move another 112 bitcoin per day.

如果該時間段內比特幣的平均價格為 250,000 美元。這相當於投入該網路的 1,640 億美元資本。所以網路的價格一直在 900 BTC。減半前一天。但在那之後，如果你有一個非常反射的協議改變，那麼在接下來的四年裡，每天將減少 450 個比特幣以任何價格出售。當然，四年後，每天的比特幣供應量不會再減少 225 個。四年後，還會有另一個每天轉移 112 比特幣。

Out of the supply. This is unique to Bitcoin. You won't see it any other commodity in the world. You're not going to see it in a analog commodity because it's impossible but you won't see it in any other digital commodity in the world because Bitcoin is the winner, but Bitcoin is going to be in all likelihood, the only digital commodity that is made institutional-grade via spot ETFs and the American Capital Markets. So this is a profound insight and we view this as being very bullish for the asset class we go the next slide, MicroStrategy's approach and is the same as it has been, but I think we're getting a little bit better at it. And I think we're starting to understand our unique advantages as time goes on.

缺貨了。這是比特幣獨有的。您不會在世界上任何其他商品中看到它。你不會在模擬商品中看到它，因為這是不可能的，但你不會在世界上任何其他數位商品中看到它，因為比特幣是贏家，但比特幣很可能會成為唯一的數字商品這是透過現貨 ETF 和美國資本市場實現機構級的。因此，這是一個深刻的見解，我們認為這對於下一張投影片中的資產類別非常樂觀，MicroStrategy 的方法與以往相同，但我認為我們在這方面做得更好了。我認為隨著時間的推移，我們開始了解我們獨特的優勢。

We are a Bitcoin development company in the same way that you might have a real estate development company, AeroFONE, if you are able to create or create a company and then take it public and then issue securities and capital markets. In order to buy and develop commercial real estate, you would have an advantage over private companies doing the same thing because public companies always have an advantage and financing, you would have the option to raise financing, not just from banks, but also from on the public capital markets. So we are we are a public company and operating company, and that gives us a flexible in our control or active control over our capital structure.

我們是一家比特幣開發公司，就像您可能擁有房地產開發公司 AeroFONE 一樣，如果您能夠創建或創建一家公司，然後將其上市，然後發行證券和資本市場。為了購買和開發商業房地產，您將比做同樣事情的私人公司更有優勢，因為上市公司總是有優勢和融資，您可以選擇籌集融資，不僅可以從銀行，還可以從其他地方籌集資金公共資本市場。所以我們是一家上市公司和營運公司，這使我們能夠靈活地控製或主動控制我們的資本結構。

And then the second thing we have is the ability to innovate with with software development, and we'll be showing some innovations at our conference this week, and we're very excited about. And we're also unique because we can generate cash from operations. And and as a follow on and Andrew pointed out, we've able to been able to invest $825 million in cash to date in order to acquire that client and we're able to leverage the capital markets. And I think we take a very balanced view toward capital markets when we think it's appropriate for us to issue equity or raise permanent equity capital via shelf registration.

我們擁有的第二件事是軟體開發創新的能力，我們將在本週的會議上展示一些創新，我們對此感到非常興奮。我們的獨特之處還在於我們可以透過營運產生現金。正如安德魯接著指出的那樣，迄今為止，我們已經能夠投資 8.25 億美元現金來收購該客戶，並且我們能夠利用資本市場。我認為，當我們認為適合透過擱置註冊發行股票或籌集永久股本時，我們對資本市場持非常平衡的看法。

And we do that and we've done that to raise $3.2 billion in equity capital and we think the markets are more supportive of us are issuing debt or especially convertible debt than we do that. And at AS, as Andrew pointed out, this strategy was very accretive in Q. one and and the effective difference between the accretion of Bitcoin and the dilution of our share count was more than 8%. So we were able to generate an 8% yield in a single quarter. Then we believe that's going to support a premium to our underlying net asset value going forward and is going to allow us to find more accretive capital markets opportunities in the future that we will avail ourselves of to the benefit of our shareholders.

我們這樣做是為了籌集 32 億美元的股本，我們認為市場更支持我們發行債務，特別是可轉換債務，而不是我們這樣做。在 AS，正如安德魯所指出的，這一策略在第一季非常有增值作用，比特幣的增值與我們股份數量的稀釋之間的有效差異超過 8%。因此，我們能夠在一個季度內實現 8% 的收益率。然後我們相信，這將支持我們未來基礎資產淨值的溢價，並使我們能夠在未來找到更多增值的資本市場機會，我們將利用這些機會為股東謀取利益。

And so in summary, Bitcoins crossed the chasm to institutional adoption of Bitcoin is unique and is being uniquely recognized as the one institutional crypto asset. And MicroStrategy is now developed a very balanced strategy of acquiring back home and cash flows with equity with debt and ARM, and we're providing our use for our set of public securities, both equity as well as options as well as debt instruments that institutional investors can use in order to tailor their portfolio as they invest, whether it's long or short or hedge and the macro economy and the crypto economy doing it on on exchanges and in a way that's compliant with all of their operating charters. And that, in a nutshell, I think explains the MicroStrategy value proposition and our opportunity going forward.

總而言之，比特幣跨越了機構採用的鴻溝，比特幣是獨一無二的，並且被唯一地認可為一種機構加密資產。 MicroStrategy 現在製定了一個非常平衡的策略，透過債務和 ARM 來獲取回國和現金流，我們正在為我們的一系列公共證券提供使用，包括股權、選擇權以及債務工具，投資者可以在投資時使用它們來調整自己的投資組合，無論是多頭、空頭或對沖，宏觀經濟和加密經濟都在交易所上進行，並以符合其所有營運章程的方式進行。簡而言之，我認為這解釋了 MicroStrategy 的價值主張和我們未來的機會。

And with that, I'll go ahead pass the floor back to Shirish.

接下來，我將把發言權交還給希里什。

Thank you, Michael. Now we will begin our Q&A session.

謝謝你，麥可。現在我們將開始我們的問答環節。

And the first question is per phone. And can you elaborate on the Company's new positioning as the bitcoin development company? And are there any new developments you would like to highlight?

第一個問題是針對每支手機的。能否詳細介紹一下公司作為比特幣開發公司的新定位？您想強調一下什麼新進展嗎？

Thanks, Shirish. So we talked quite extensively during our prepared remarks about the bitcoin development company. I think perhaps the question is more specific about the development portion and whether we're doing any software development and the decline area for those who are attending Bitcoin for Corporations on Wednesday, we'll have about a half day talking about the technology ecosystem associated with Bitcoin.

謝謝，希里什。因此，我們在準備好的關於比特幣開發公司的評論中進行了相當廣泛的討論。我認為也許這個問題更具體地涉及開發部分，以及我們是否正在做任何軟體開發以及對於週三參加企業比特幣的人來說，下降領域，我們將有大約半天的時間討論相關的技術生態系統與比特幣。

It will also share some new developments in an area of bitcoin security and that we're working on. And I think people will be excited to see some of the things we're doing in that space. We continue to experiment and continue to advocate for Bitcoin development and so there's more work around that area that we'll share in a couple of days.

它還將分享我們正在努力的比特幣安全領域的一些新進展。我認為人們會很高興看到我們在該領域所做的一些事情。我們將繼續試驗並繼續倡導比特幣的開發，因此我們將在幾天內分享圍繞該領域的更多工作。

We Thanks, phone. Next question is for Mike. MicroStrategy's equity premium to Bitcoin holdings has expanded materially over the past few months and despite the recent bitcoin pullback, the premium remains healthy.

我們謝謝，電話。下一個問題是問麥克的。 MicroStrategy 相對於比特幣持有量的股權溢價在過去幾個月大幅擴大，儘管最近比特幣有所回落，但溢價仍保持健康。

How do think about the premium and what do you attribute this to shrink further from if we had no leverage and we generated no accretion. Then we would start to look like a spot Bitcoin ETF, but the fact is we have leverage, then the leverage will justify a premium. If the leverage was if we just had $1 billion of leverage and we were paying 10% interest, it would be a small premium. We would be basically levering $1 billion, a 10% interest. That's yielding of where Bitcoin is appreciating at 40% or or more.

如果我們沒有槓桿並且我們沒有產生增值，您如何看待溢價以及您認為溢價進一步縮水的原因是什麼。然後我們就會開始看起來像一個現貨比特幣 ETF，但事實是我們有槓桿，那麼槓桿將證明溢價是合理的。如果我們只有 10 億美元的槓桿並且支付 10% 的利息，那麼這將是一個很小的溢價。我們基本上會使用 10 億美元的槓桿，即 10% 的利息。這是比特幣升值 40% 或以上的收益率。

So there would be definitely a premium, but it would be the difference between the leverage and the yield a bit cleaner and depreciate it based on a small amount of money on $1 billion. But if we have more leverage and if the cost of the capital is lower than that justifies a higher premium. So when you get to $3 billion of converts and when that converts or 50 basis points that you've got more leverage and you've got a lower cost of capital. So I think that justifies a higher premium when you're able to issue a billions of dollars of equity at a price at a premium than that justifies and turn an even higher premium and also strengthen the capital structure, providing us with unpledged assets that we can use for future financing are used to leverage future corporate opportunities.

所以肯定會有溢價，但槓桿率和收益率之間的差異會更乾淨一些，並根據 10 億美元的少量資金進行貶值。但如果我們有更多的槓桿，而資本成本低於這個水平，就可以證明更高的溢價是合理的。因此，當您的轉換金額達到 30 億美元，並且轉換金額達到 50 個基點時，您就獲得了更大的槓桿作用，並且資本成本也更低。因此，我認為，當你能夠以高於合理水平的溢價發行數十億美元的股票時，就可以證明更高的溢價是合理的，並且可以提高溢價，同時也可以加強資本結構，為我們提供我們未質押的資產。

And then, of course, when we're able to do convertible issuances and then convert that coin and capture and not just the premium upfront, but but the benefits over the next six years of our Bitcoin appreciation that justifies another premium. So as you can imagine, if you could, if you thought you could generate an 8% accretion per year. There's no reason why you couldn't justify 100% or more premium in that asset value. If you could generate an 8% accretion more often than once a year, if you could do it, you know, from quarter to quarter or every other quarter or do anything consistently over time, then it's quite possible to come to to any number of different premium calculations.

當然，當我們能夠發行可轉換貨幣，然後轉換該代幣並捕獲的不僅僅是預先的溢價，而是未來六年比特幣升值的好處，這證明了另一個溢價的合理性。所以你可以想像，如果你可以的話，如果你認為你每年可以產生 8% 的成長。您沒有理由不能證明該資產價值 100% 或更高的溢價是合理的。如果你能比每年一次更頻繁地產生8% 的成長，如果你能做到，你知道，每個季度或每隔一個季度都這樣做，或者隨著時間的推移持續做任何事情，那麼很有可能達到任意數量的成長。

And ultimately, the company's premium is a function of our ability to execute over a long period of time. And also, you know, the market's view as to whether or not they appreciate that. And of course, that's a that's a shifting sentiment and there's uncertainty into the future. So there will continue to be uncertainty about what the right premium ought to be, and I think that's what makes the market.

最終，公司的溢價取決於我們長期執行的能力。而且，你知道，市場對他們是否欣賞這一點的看法。當然，這是一種不斷變化的情緒，未來存在著不確定性。因此，正確的溢價應該是多少仍然存在不確定性，我認為這就是市場的原因。

Thank you, Michael. Next question is regarding Michael's 10b5-1 plan. Has the Micrel has the plan to exercise MicroStrategy stock options completed already? And can you please provide further color on the executed plan and the thought process behind the stock sales?

謝謝你，麥可。下一個問題是關於邁克爾的 10b5-1 計劃。 Micrel 是否已完成行使 MicroStrategy 股票選擇權的計畫？您能否提供更多有關執行計劃和股票銷售背後的思考過程的資訊？

Yes, Suresh, let me take that one. So I guess first off on Michael's option exercises and more than planned and actually fully disclosed, I believe it was in our RQ. three filing of last year. And as most know as officers and directors of the company, we have to put in place a 10 B five one plan, which discloses that upfront and the plan was related to 400,000 options, which Michael received back in 2014 and which were set to expire this April.

是的，蘇雷什，讓我拿那個。因此，我想先關於邁克爾的選擇權行使，並且超出計​​劃且實際上完全披露，我相信它在我們的 RQ 中。去年的三份備案。正如大多數公司高管和董事所知，我們必須制定一項 10 B 五一計劃，該計劃預先披露了這一點，該計劃與邁克爾在 2014 年收到的 400,000 份期權相關，這些期權即將到期今年四月。

So the sales were problematic, Michael, so 5,000 shares on each trading day between Jan to and April 25 at market prices. And again, the sales were executed under the plan and it was completed on the 25th as disclosed. And it does not have any additional 10b5 one plan in place at the time. So it's worth noting also that obviously, Michael, so holds a significant ownership stake in the company. And I know there's been a lot of some questions and chatter around that on the sales. But it's really as simple as they were they were put in place disclosed and programmatic to do so before as options exercised are expired.

因此，邁克爾，銷售存在問題，因此 1 月至 4 月 25 日期間每個交易日以市場價格出售 5,000 股。再次強調，此次銷售是按照計劃進行的，正如披露的那樣，銷售已於 25 日完成。而且當時還沒有任何額外的 10b5 one 計劃。因此值得注意的是，邁克爾顯然擁有該公司的大量股權。我知道圍繞銷售存在著許多問題和討論。但這確實很簡單，因為它們是在行使選擇權到期之前就已公開並有計劃地這樣做的。

Thanks, Andrew. You're coming to the end of time. We'll take one last question here. This one is for Phong. Can you please elaborate on the progress of converting software clients to cloud from license? Anna, the EA related partnerships.

謝謝，安德魯。你即將來到時間的盡頭。我們將在這裡回答最後一個問題。這是給馮的。能否詳細介紹軟體用戶端從授權轉換到雲端的進度？ Anna，EA 相關合作夥伴。

Yes.

是的。

So on the one and the same, a lot of our AI and cloud partnerships are with the large hyperscalers, especially Microsoft, AWS and Google Cloud. And we're being pretty aggressive working with our hyperscalers and our partners this year to get as many customers to cloud as possible. And we have some pretty ambitious plans. You'll note and Andrew noted that that does have a short-term impact of product license revenue because the product rights license revenue represents the incremental revenue on-prem customers. And we're trying to as we move customers to cloud, you'll see that offset over time. So moving fast using our partners, AI is only available in the cloud. So it's another impetus for customers to move to cloud, but it will have some short term disruption in product license revenue or total revenue. Many companies have gone through this transition and we are well equipped to do the same, and I'm excited about the prospects of what that means for us in the long term.

因此，一方面，我們的許多人工智慧和雲端合作夥伴關係都是與大型超大規模企業建立的，特別是微軟、AWS 和谷歌雲端。今年，我們非常積極地與我們的超大規模供應商和合作夥伴合作，讓盡可能多的客戶使用雲端。我們有一些非常雄心勃勃的計劃。您會注意到，安德魯指出，這確實會對產品許可證收入產生短期影響，因為產品權利許可證收入代表了本地客戶的增量收入。當我們將客戶轉移到雲端時，我們正在努力，隨著時間的推移，您會看到這種抵消。因此，與我們的合作夥伴一起快速行動，人工智慧只能在雲端使用。因此，這是客戶遷移到雲端的另一個動力，但它會對產品授權收入或總收入產生一些短期幹擾。許多公司已經經歷了這一轉變，我們也有能力做到同樣的事情，我對這對我們的長期意義的前景感到興奮。

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

謝謝保羅，謝謝大家，你們的問題收到了很多很好的問題，我們試著在準備好的發言和隨後的問答中解決。

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

今天網路研討會的問答部分就到此結束。現在，我將把電話轉交給 Phong，讓他作最後的總結發言。

Thanks, everyone.

感謝大家。

I really want to thank everyone for being with us today. We appreciate your support.

我真的要感謝大家今天和我們在一起。我們感謝您的支持。

We're also excited to host MicroStrategy World in Las Vegas over the next three days and looking forward to seeing customers, prospects, partners, analysts and shareholders alike at this one of a one-of-a-kind event for those who aren't able to be here in person.

我們也很高興在接下來的三天內在拉斯維加斯舉辦MicroStrategy World，並期待在這場為那些不熟悉的人舉辦的獨一無二的活動中見到客戶、潛在客戶、合作夥伴、分析師和股東。

We're also live streaming.

我們也在直播。

Our keynotes from MicroStrategy World starts at 9.30 A.M. Pacific Time tomorrow and the entirety of the coin for corporations. So you'll be able to watch both of those on the line. If you're not able to be here in person, you're invited to join get details at our website, www.microstrategy.com. We're as enthusiastic as ever with both our enterprise software strategy as well as our Bitcoin strategy.

我們的 MicroStrategy World 主題演講將於上午 9.30 開始。明天太平洋時間和企業的整個硬幣。這樣您就可以在線觀看這兩個節目。如果您無法親自到場，我們邀請您訪問我們的網站 www.microstrategy.com 以獲取詳細資訊。我們對企業軟體策略和比特幣策略一如既往地充滿熱情。

And we wish you a good quarter and look forward to seeing you all again in 12 weeks. Thank you all.

我們祝福您有個愉快的季度，並期待 12 週後再次見到大家。謝謝你們。