MicroStrategy Stock

MicroStrategy Incorporated (MicroStrategy) operates as a Bitcoin development company.

The company engages in the development of the Bitcoin network through its activities in the financial markets, advocacy and technology innovation. The company also develops and provides industry-leading AI-powered enterprise analytics software that promotes its vision of Intelligence Everywhere, and is using software development capabilities to develop bitcoin applications.

Bitcoin Strategy

The company’s bitcoin strategy includes acquiring bitcoin using cash flows from operations and proceeds from equity and debt financings, developing product innovations that leverage Bitcoin blockchain technology, and periodically engaging in advocacy and educational activities regarding the continued acceptance and value of bitcoin as an open, secure protocol for an internet-native digital asset and the Lightning Network.

Bitcoin Holdings

During 2023, the company purchased a total of approximately 56,650 bitcoins. As of February 14, 2024, the company held approximately 190,000 bitcoins.

Custody of Bitcoin

The company holds substantially all of its bitcoin in custody accounts at U.S.-based, institutional-grade custodians that have demonstrated records of regulatory compliance and information security. The company carefully selects the custodians that custody its bitcoin after undertaking a due diligence process. As part of its custodian selection process, the company evaluates for and select custodians that can demonstrate that they operate with strict security protocols, including multifactor authentication procedures designed to safekeep its bitcoin. In addition, the company’s custodial services agreements generally specify that the private keys that control its bitcoin will be held in offline or cold storage, which is designed to mitigate risks that a system may be susceptible to when connected to the internet, including the risks associated with unauthorized network access and cyberattacks. In addition to its custodial arrangements, the company utilizes affiliates of its bitcoin custodians to execute bitcoin acquisition and disposition transactions on its behalf. The company leverages the due diligence it conducts in connection with its custodial arrangements when conducting due diligence of these trade execution service providers.

The company also conducts due diligence reviews during the custodial relationship to monitor the safekeeping of its bitcoin. As part of its process, the company obtains and reviews its custodians’ Services Organization Controls reports. The company is also contractually entitled to review its custodians’ relevant internal controls through a variety of methods. The company obtained supporting documentation to verify certain factual information, including documentation and analysis regarding financial solvency, exposure to troubled exchanges, regulatory compliance, security protocols and its ownership of its bitcoin.

The company negotiates specific contractual terms and conditions with its custodians that will help establish, under existing law, that its property interest in the bitcoin held by its custodians is not subject to the claims of the custodian’s creditors in the event the custodian enters bankruptcy, receivership or similar insolvency proceedings. All of its custodians are subject to regulatory regimes intended to protect customers in the event that a custodian enters bankruptcy, receivership or similar insolvency proceedings.

Enterprise Analytics Software Strategy

MicroStrategy is a pioneer in AI-powered business intelligence (BI), and a global leader in enterprise analytics solutions. The company provides software and services designed to turn complex, chaotic data environments into rich, reliable, and convenient information feeds for its customers.

The company’s cloud-native flagship, MicroStrategy ONE, powers some of the largest analytics deployments in the world for customers spanning a wide range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector.

Integral to the MicroStrategy ONE platform are Generative AI capabilities that are designed to automate and accelerate the deployment of AI-enabled applications across the company’s customers’ enterprises. By making advanced analytics accessible through conversational AI, MicroStrategy ONE provides non-technical users with the ability to directly access novel and actionable insights for decision-making.

The MicroStrategy ONE Platform

MicroStrategy ONE combines the flexibility and scalability afforded by a modern, cloud application with the reliability and security of the company’s robust data governance model. It empowers users by making rich analytics easily accessible and personalized, while enabling organizations to harness the value of their data wherever it is needed.

FedRAMP Authorization

The MicroStrategy Cloud for Government service (MCG Service) is authorized to operate under the Federal Risk and Authorization Management Program (FedRAMP) guidelines, which certifies compliance with essential cloud security and data protection standards set by the U.S. Federal government. The solution offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions worldwide. The MCG Service achieved this designation through collaboration with the U.S. Department of Health and Human Services.

MicroStrategy Professional Services

Through its MicroStrategy Support, MicroStrategy Consulting, and MicroStrategy Education services, the company helps customers deploy and customize its solutions to facilitate adoption and maximize returns on data investments.

MicroStrategy Support

The company’s global network of MicroStrategy-certified technical support experts help its customers achieve their system availability and usage goals through highly responsive troubleshooting and assistance. Standard Support is included in every maintenance plan or subscription license. Premium support options are also available for extended coverage and enhanced service at each touchpoint.

MicroStrategy Consulting

Many companies lack the internal expertise needed to design solutions for managing and optimizing their data stores. MicroStrategy Consultants deliver architecture and implementation services to help customers realize their desired results. With thousands of successful projects delivered to customers worldwide, the company’s consultants apply industry best practices to define, develop, and deliver AI-powered analytics solutions for virtually any business intelligence need.

MicroStrategy Education

To help organizations maximize the adoption and performance of their MicroStrategy solutions, MicroStrategy Education offers free and paid learning options, available worldwide in multiple languages and a variety of formats—both in person and online, live and on-demand.

Sales and Marketing

Licensing Models

MicroStrategy sells its software platform under two pricing models include traditional enterprise software licensing for on premise deployments, and subscriptions for cloud-based deployments. Enterprise software license terms are often perpetual, but term licenses typically extend for between 12 and 36 months and include standard support and maintenance for the term of the license. Subscriptions for cloud-based deployments typically are for 36 months and include standard support. Premium support services are available with either licensing model for added fees.

Dedicated Sales and Customer Success Teams

The company sells its offerings chiefly through its direct sales force, with sales offices throughout the world. The company also supports customers post-sale through a dedicated Customer Success team that manages the customer lifecycle, from onboarding and training through license renewal and expansion. This separation allows the company’s Sales team to focus on new business development and acquisition, while its Customer Success team focuses on customer experience, satisfaction, and lifetime value.

Strategic Partnerships

The company has established strategic partnerships with a wide variety of third-party vendors, including cloud hosting providers (AWS, Microsoft, and Google), system integrators, consulting firms, value added resellers (VARs), managed service providers (MSPs), and independent software vendors (ISVs). These firms resell, support, or extend the MicroStrategy platform for a variety of commercial purposes, and the company’s agreements with them generally provide non-exclusive rights to its software, marketing materials, product training, and direct sales force for field-level assistance.

Marketing

The company’s marketing programs target the following principal audiences:

technology and line-of-business executives across large, global enterprises and mid-size organizations;

government technology buyers and vendors to the government community;

ISVs that want to embed analytics technology in their applications; and

system integrators that have technology relationships with large enterprises, governments, and information-intensive businesses.

The channels the company uses to reach prospective buyers and partners include digital and social media, search and display advertising, industry and hosted events, webinars, email, partner co-marketing activities, and educational forums.

Trademarks

The trademarks and registered trademarks of the company and its subsidiaries referred to herein include, but are not limited to, MicroStrategy, MicroStrategy ONE, MicroStrategy Auto, Intelligence Everywhere, HyperIntelligence, MicroStrategy Consulting, MicroStrategy Education, Dossier, MicroStrategy Cloud, Enterprise Semantic Graph, MicroStrategy Services, Global Delivery Center, and Intelligent Enterprise.

Competition

For enterprise analytics, the company competes with global ISVs, such as IBM, Microsoft, Oracle, Salesforce, and SAP.

Government Regulation

The company’s access to protected health information triggers obligations to comply with certain privacy rules and data security requirements under the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

The company has been required to devote substantial resources to implement and maintain compliance with the California Consumer Privacy Act, and noncompliance could result in regulatory investigations and fines or private litigation.

History

MicroStrategy Incorporated was founded in 1989. The company was incorporated as a Delaware corporation in 1989.