MicroStrategy Incorporated (MSTR): Business Model Canvas [Dec-2025 Updated]

You're digging into MicroStrategy Incorporated (MSTR), and honestly, what you see is a company that's definitely two businesses in one, which is why the valuation gets so tricky. Forget the legacy enterprise software; the main event is the massive, leveraged Bitcoin treasury, which, as of late 2025, sits at roughly 650,000 BTC and is the primary driver of massive non-operating gains-think the $2.8 billion net profit they booked in Q3 2025 alone. To properly assess the risk versus the potential for investors seeking a leveraged Bitcoin proxy, you need to map out how the software side, which still brings in recurring subscription revenue, supports the capital structure needed to fund this digital asset strategy, so let's dive into the nine building blocks of this unique model below.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships that make MicroStrategy Incorporated (MSTR)'s dual business-enterprise analytics software and Bitcoin treasury-function at scale. These aren't just casual agreements; they are critical dependencies for both technology delivery and balance sheet security.

Strategic partnership with HCLTech for global deployment of Mosaic AI.

MicroStrategy Incorporated (MSTR) named HCLTech a preferred enterprise solution and professional services partner to accelerate the worldwide rollout of Strategy Mosaic, the company's AI-powered Universal Semantic Layer. HCLTech brings significant scale to this effort, employing over 226,600 people across 60 countries, and reported consolidated revenues of $14.2 billion for the 12 months ending September 2025. This partnership is key to integrating Mosaic into complex, multicloud environments for global clients.

Cloud alliances with AWS and Google for software delivery and scale.

The MicroStrategy ONE platform is designed with a cloud-first approach, supporting flexible deployment across major hyperscalers. While specific direct financial commitments to AWS or Google Cloud aren't always itemized in partnership announcements, the underlying ecosystem is well-defined. For instance, Snowflake, a key data ecosystem partner, sees 80% of its deployments on AWS, with 2% on GCP (Google Cloud Platform). This indicates the heavy reliance on these environments for delivering MicroStrategy's software services.

Data ecosystem partners like Snowflake for seamless data integration.

The relationship with Snowflake is validated by industry recognition. MicroStrategy Incorporated (MSTR) was honored by Snowflake as the EMEA Data Cloud Product Acceleration Partner of the Year. Snowflake's 2025 Modern Marketing Data Stack Report, which analyzed usage patterns of over 9,800 customers, recognized MicroStrategy Incorporated (MSTR) as a leader in Business Intelligence for the second consecutive year. This deep integration helps customers reduce data loading and query times by leveraging Snowflake's elastic compute and storage architecture.

Custodians and financial institutions for securing and managing the Bitcoin reserve.

The management of the Bitcoin treasury involves critical relationships with custodians. As of November 30, 2025, MicroStrategy Incorporated (MSTR) held 650,000 BTC. A significant portion of this reserve is held off-chain for operational purposes. For example, the firm transferred 11,642 BTC, valued at $1 billion in that transaction, to Fidelity, bringing the total moved to Fidelity's omnibus custody to 177,351 BTC, which represented roughly 27% of its total holdings at that time. The company's average purchase price for its total holdings was $66,384.56 USD per bitcoin, with a total cost basis of $33.139 billion USD as of December 2, 2025.

Here's a quick look at the scale of the business supporting these partnerships as of the Q3 2025 reporting period:

The company's ability to raise capital, such as the $1.44 billion raised through equity sales noted in other reports, is directly tied to the confidence its partners and the market place in its Bitcoin treasury strategy. Finance: draft 13-week cash view by Friday.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Key Activities

You're looking at the core engine of MicroStrategy Incorporated (MSTR) as of late 2025. This isn't just a software company anymore; it's a dual-focus entity where capital markets activity is as critical as product development. Here's the breakdown of the primary activities driving the business.

Financial engineering to raise capital via equity/debt for Bitcoin acquisition

The primary activity here is the continuous, disciplined execution of capital markets strategy to fund the digital asset treasury. This involves tapping both equity and fixed-income instruments to acquire Bitcoin. The overarching goal is captured in the '21/21 Plan,' targeting a total capital raise of $42 billion between 2025 and 2027, split between $21 billion from equity and $21 billion from fixed-income securities.

Recent capital raising activity in 2025 shows this in action. For instance, in the period of November 17 to November 30, 2025, MicroStrategy Incorporated sold 8.214 million class A shares for net proceeds of $1.48 billion. Earlier in November, the sale of MSTR shares and preferred stock (STRK and STRF) generated proceeds, including $54.4 million from MSTR share sales between October 27 and November 2. The company also announced plans to issue its 8.00% series A perpetual strike preferred stock to raise up to $21 billion.

The scale of capital markets success is significant:

• Raised over $10 billion through ATM programs and IPOs in Q2 2025.
• Raised $19.8 billion in capital year-to-date Q3 2025 for Bitcoin acquisitions.
• Annualized dividend and interest obligations from debt and preferred stock total $689 million.

Active management and security of the 650,000 BTC digital asset treasury

This is the core asset management function. As of early December 2025, MicroStrategy Incorporated holds approximately 650,000 BTC. Specifically, holdings reached 641,205 BTC as of November 2, 2025, acquired for an aggregate cost of about $47.49 billion at an average price of $74,057 per BTC. The company has stated that its Bitcoin holdings represent about 3.1% of the total Bitcoin that will ever exist.

To manage liquidity risk associated with its debt and preferred share obligations, the company established a $1.44 billion USD Reserve. This reserve is intended to cover at least 12 months of dividends and debt payments, with a plan to stretch this to 24 months or more. The company's enterprise value as of late October 2025 was $98 billion, with the Bitcoin Net Asset Value (NAV) supporting $71 billion, or 72% of that enterprise value.

Here's a look at the treasury scale:

Research and development for the AI-powered analytics platform, Mosaic

MicroStrategy Incorporated continues to advance its enterprise software, highlighted by the general availability of the Strategy Mosaic platform in June 2025. This platform is designed as an AI-powered Universal Intelligence Layer to unify disparate data sources. The company's Chief Product Officer noted that Mosaic breaks through barriers like data silos and conflicting metrics.

The software business remains a distinct, though secondary, revenue stream. For Q2 2025, software revenue was reported at $114.5 million. Subscription services revenue showed growth, reaching $40.8 million in Q2 2025.

Key software financial metrics:

• Q2 2025 Subscription Services Revenue: $40.8 million.
• Q1 2025 Subscription Services Revenue: $37.1 million.
• Q1 2025 Subscription Services YoY Growth: 61.6%.
• Expected 2025 Revenue Growth (Analyst Estimate): 5.5%.

Global sales and professional services for enterprise software deployment

This activity focuses on deploying the analytics platform, including both subscription and product support models. The transition to cloud and subscription is evident in the revenue mix. Product support revenue, a traditional component, decreased by 16.2% to $52.5 million in Q1 2025. The gross margin for Q2 2025 was 68.8%, with a gross profit of $78.7 million.

The company's trailing twelve months (TTM) revenue as of 2025 is reported around £0.36 Billion (or $0.35 Billion TTM). Honestly, the software side is about maintaining a base of recurring revenue while the capital markets side drives the primary valuation narrative. Finance: draft 13-week cash view by Friday.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Key Resources

You're looking at the core assets that power MicroStrategy Incorporated (MSTR) right now, late in 2025. These aren't just line items; they are the foundation of the current corporate strategy, which is heavily weighted toward digital assets.

The most significant resource is the digital asset treasury. As of late November/early December 2025, MicroStrategy Incorporated (MSTR), often referred to as Strategy in recent reports, holds approximately 650,000 BTC. This massive holding represents about 3.1% of the total 21 million Bitcoin that will ever exist. The total cost basis for this treasury is reported at $48.38 billion, resulting in an average purchase price of $74,436 per Bitcoin. To put this in perspective, a recent acquisition added 130 BTC for $11.7 million between November 17 and November 30, 2025.

To manage the obligations tied to its financing strategy, the company established a significant cash buffer. This $1.44 billion USD reserve is explicitly for supporting dividend and interest payments. This reserve, funded via a common stock sale that brought in about $1.478 billion, currently covers roughly 21 months of preferred dividend obligations. The stated target is to grow this buffer to cover 24 months or more of payments. The annual dividend obligation is cited around $800 million to $807 million.

The original business line, the proprietary enterprise analytics software platform and intellectual property, remains a key resource, though it plays a secondary role to the Bitcoin treasury. The company provides AI-powered enterprise analytics software, including the Strategy ONE platform and Strategy Cloud for Government. For the third quarter of 2025, the software segment reported revenue of $128.7 million. Looking at the Trailing Twelve Months (TTM) as of late 2025, the total revenue for MicroStrategy Incorporated (MSTR) stands at $0.47 Billion USD. The first half of 2025 saw total revenue of USD 225.55 million.

The final, non-quantifiable but critical resource is the executive leadership, specifically Founder and Executive Chairman Michael Saylor, who is the architect of the Bitcoin corporate strategy. CEO Phong Le is also noted as being involved in communicating the strategy and the rationale behind the new USD reserve.

Here's a quick look at the primary financial and asset figures:

The leadership team's commitment is evident in their actions, such as framing the USD reserve as 'the next step in our evolution.' Still, the reliance on the software business for operational cash flow is minimal compared to capital raises.

• Bitcoin holdings represent approximately 3.1% of the total supply.
• The company is the world's largest corporate Bitcoin holder.
• The USD reserve aims to cover 24+ months of payments over time.
• Software business generated 10.9% revenue growth in Q3 2025 year-over-year.

Finance: draft 13-week cash view by Friday.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Value Propositions

You're looking at the core value MicroStrategy Incorporated delivers right now, and honestly, it's split into two very distinct parts: the digital asset strategy and the enterprise software business. The market values these parts very differently, which is key to understanding the stock. Here's the quick math on what they are offering investors and customers as of late 2025.

Bitcoin Proxy: Offering public equity investors leveraged exposure to BTC

The primary value proposition for the public equity investor is direct, leveraged exposure to Bitcoin (BTC). MicroStrategy Incorporated is positioned as the world's leading corporate Bitcoin treasury company. This strategy allows investors to gain exposure to the asset's appreciation without directly holding the cryptocurrency, though it comes with the inherent volatility of the underlying asset. The scale of this commitment is massive.

The company's financial performance in Q3 2025 clearly shows this dynamic. Total Revenue for the quarter was only $128.7 million, yet the Net Income soared to $2.8 billion. This massive profit was largely due to an unrealized gain on digital assets of $3.9 billion recognized in Q3 2025 operating income. Year-to-date through the first nine months of 2025, the unrealized gains on digital assets totaled a whopping $12 billion, dwarfing the software revenue of just $354 million in that same period.

AI-Powered Analytics: Providing an AI-driven Universal Semantic Layer for enterprise data

For enterprise customers, the value proposition centers on making data actionable and trustworthy in the age of Generative AI. MicroStrategy Incorporated is pushing its Strategy Mosaic™, which acts as a universal business semantics and governance layer. This is designed to solve the core problem of AI hallucinations by providing proprietary business context to Large Language Models (LLMs).

The market is clearly adopting this direction. A 2025 Global Survey commissioned by MicroStrategy Incorporated found that 43% of organizations are now using AI-powered analytics in production. The top goal for these users is improved decision-making, cited by 56% of respondents. Still, adoption is early; only 8% of employees in most firms currently use advanced analytics tools, though 24% of organizations plan to triple that number in the next 12 months.

Inflation Hedge: A corporate treasury strategy focused on Bitcoin as a primary store of value

This proposition is about capital preservation and aggressive growth through a non-fiat reserve asset. MicroStrategy Incorporated's strategy is to use capital markets to continuously accumulate Bitcoin, treating it as the primary treasury reserve asset. This is a bold stance against inflation and currency debasement. The scale of the holdings dictates the company's enterprise value fluctuations.

As of December 2025, the company holds 650,000 Bitcoin. The Bitcoin Net Asset Value (NAV) was reported at $71 billion during Q3 2025 results, though a more recent update showed it declined to $59 billion due to market volatility. To manage the associated financial obligations without selling BTC, the company established a $1.44 billion U.S. dollar reserve. This reserve is intended to cover at least 21 months of dividend obligations, with a target to reach 24 months coverage.

Recurring Revenue Stability: Cloud-based subscription model for analytics software

While the Bitcoin strategy drives net income volatility, the software business provides a foundation of predictable, recurring revenue. This stream helps cover operational costs and debt servicing, which is crucial given the annual dividend payments are around $800 million. The focus is shifting to cloud subscriptions, which are inherently more stable than perpetual licenses.

The growth in this segment is tangible, though it remains a small fraction of the overall financial picture. In Q1 2025, subscription services revenue grew by 62% year-over-year, making up 33% of total software revenues at that time. For Q3 2025 specifically, the software business reported revenue of $128.7 million, representing a 10.9% year-over-year growth.

Here is a snapshot of the key financial metrics underpinning these value propositions as of late 2025:

The company's forward guidance shows how sensitive these value propositions are to the Bitcoin price. For instance, MicroStrategy Incorporated expects an operating profit of $9.5 billion in 2025 if Bitcoin trades at $110,000 by year-end, but an operating-level loss of $7 billion if it trades at $85,000.

You can see the software segment's contribution to the overall enterprise value is minimal, but it provides essential operational cash flow stability:

• AI Adoption: 43% of organizations use AI-powered analytics in production.
• Subscription Growth: 62% year-over-year growth in subscription services revenue in Q1 2025.
• Software Revenue Proportion: Less than 5% of total Q3 2025 revenue.
• Employee Usage: Only 8% of employees in most firms currently use advanced analytics tools.

Finance: draft the 13-week cash view by Friday, focusing on the $1.44 billion reserve runway against the $800 million annual dividend obligation.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Customer Relationships

You're looking at a company that has fundamentally changed its customer base focus, so the relationships reflect a dual identity: the established enterprise software provider and the world's largest corporate Bitcoin holder, now operating as Strategy.

Dedicated account management and consulting for large enterprise software clients

For the enterprise analytics side, Strategy still relies on direct engagement for its large clients, which is evident in the recognition they receive. They provide cloud-native, AI-powered enterprise analytics software to thousands of global customers. This relationship is validated by industry recognition, like winning two VIP Awards at NRF 2025: 'Partner of the Year' and 'AI Innovation & Application'.

Here's a snapshot of the enterprise relationship validation points:

The relationship management includes guiding these large users toward the modern platform. Strategy hosted Strategy World 2025 in Orlando, FL, from May 5-8, 2025, which saw over 1,600 people attend to engage with expert-led sessions.

Investor relations focused on communicating the Bitcoin treasury strategy

Investor relations is now almost entirely centered on the Bitcoin strategy, with Shirish Jajodia serving as the Corporate Treasurer and Head of Investor Relations. The communication aims to show how their leverage strategy is creating shareholder value. As of July 31, 2025, Strategy held 628,791 bitcoin at a total cost of $46.07 billion. They are transparent about their targets, too. For fiscal year 2025, they raised their 'BTC Yield' target to 30% and their 'BTC $ Gain' target to $20 billion.

The scale of the Bitcoin treasury strategy and its financial impact is communicated through key figures:

The adoption of fair value accounting (ASU 2023-08) on January 1, 2025, was a major communication point, resulting in a cumulative net increase of $12.7 billion to the opening balance of retained earnings. That's a significant accounting shift to explain to the market.

Self-service and online support for smaller software users and developers

For the broader user base, the relationship is shifting heavily toward cloud-first, self-service models. Strategy's primary deployment model is cloud-based, offering one-click upgrades. They are actively deprecating legacy on-premise features; for instance, Workstation Local Mode, which allows offline dashboard creation, will be discontinued after the Q4 2025 release.

Support structure elements include:

• Cloud-native MicroStrategy ONE platform availability on AWS, Azure, Google, and STACKIT.
• Support for on-premises deployments continues through 2026 at the contracted tier.
• Platform versions are supported for two years from their release date.
• The September 2025 release (11.5.9) is supported until September 30, 2027.
• Technical support is enhanced by the 'Auto Expert' AI chatbot.

If you're a developer, you'll be using the expanded REST API Support for Mosaic Model, which gives more control over publishing and scheduling.

Financial market communication to manage volatility and capital raises

Managing capital structure is a core relationship activity, especially given the volatility tied to the Bitcoin treasury. Strategy raised $1.44 billion via an at-the-market stock offering to cover multiple years of preferred-share dividends and debt servicing. This follows earlier Q1 2025 activity where they raised $6.6 billion net proceeds from an ATM equity offering, $2 billion via a convertible note, and $1.4 billion through preferred stock offerings.

The largest recent capital raise was in July 2025, securing $2.5 billion through the issuance of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), which was the largest U.S. IPO in 2025. The STRC offers a variable 9% dividend. The company has a stated '21/21 Plan' to raise $21 billion in equity and $21 billion in fixed income instruments between 2025 and 2027.

Finance: draft 13-week cash view by Friday.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Channels

Direct sales force for large enterprise software license and subscription deals is supported by strong growth in recurring revenue streams.

For the first half of 2025, MicroStrategy Incorporated reported total revenue of USD 225.55 Million. In the first quarter of 2025, subscription services revenues specifically reached $37.1 million, marking a 61.6% year-over-year increase. Product licenses and subscription services revenue totaled $44.4 million in Q1 2025.

The global partner ecosystem assists in distributing and selling MicroStrategy Incorporated products and services.

• Partner strategy centers around Data and Analytics, Consulting Services, and IT Management.
• As of February 2023, MicroStrategy Incorporated had a total of 252 partner engagements.
• The company announced a program for its ecosystem of more than 700 channel partners in 2018.

Cloud marketplaces are used for easy deployment of MicroStrategy ONE and Mosaic, leveraging the platform's cloud-native architecture. Specific revenue figures for cloud marketplace deployment are not separately itemized from the overall subscription services revenue.

Capital markets are a primary channel for funding the corporate strategy, evidenced by significant equity and debt issuance activity in 2025.

The company also announced a Euro-denominated preferred share class.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Customer Segments

You're looking at MicroStrategy Incorporated's customer base as of late 2025, and honestly, it's split into two very distinct camps. This dual focus-enterprise software and digital asset treasury-means their customer segments don't always overlap, which is key to understanding their overall risk and reward profile.

Institutional and retail investors seeking a leveraged Bitcoin investment vehicle.

This group is buying MicroStrategy Incorporated stock, MSTR, primarily for its massive Bitcoin holdings. As of December 1, 2025, the company held approximately 650,000 BTC, representing roughly 3.1% of Bitcoin's total supply. For these investors, MSTR is a high-beta way to play Bitcoin, often exhibiting a 1.5-2x leverage effect on the underlying asset's price swings. They are keenly watching the market-adjusted net asset value (mNAV) ratio, which, despite recent volatility, was reported at 1.13, indicating the stock still traded at a slight premium over the net value of its Bitcoin assets.

This segment is highly sensitive to the price of Bitcoin, which saw a correction in 2025, falling from highs near $125,000 down to around $85,500.

• Investors seeking leveraged exposure to BTC.
• Retail traders and institutional funds tracking BTC price action.
• Holders attracted by the company's status as the largest corporate BTC holder.

Large global enterprises needing complex, multi-cloud data analytics solutions.

This is the original MicroStrategy Incorporated customer base, focused on their AI-powered business intelligence platform. These enterprises need to unify data from disparate systems. The platform connects to over 200 data sources, spanning relational databases, big data platforms, and cloud services. For example, in 2025, they were recognized by Snowflake for successful collaboration. As of 2025, 104 verified companies use MicroStrategy Analytics. This segment is served by innovations like Strategy Mosaic™, an AI-powered Universal Intelligence Layer.

The financial context for this segment is the trailing twelve-month revenue, which stood at $474.94 million. They are the source of the company's operating revenue, distinct from the gains realized on the digital asset treasury.

Financial institutions and governments exploring digital asset treasury strategies.

While not direct software customers, this group represents a sophisticated subset of the enterprise market and a key audience for the company's overall strategy narrative. They are interested in how a publicly traded entity manages a massive digital asset reserve alongside traditional business operations. This segment is watching the company's capital structure, including its debt load, which was nearly $8.2 billion as of the end of the last quarter. Furthermore, the company's commitment to its fixed-income obligations is a major focus for this audience.

Yield-focused investors buying preferred stock for annual dividends of about $700 million.

This segment is specifically interested in the fixed-income instruments MicroStrategy Incorporated issues to fund its asset accumulation. On March 25, 2025, the company issued a new class of preferred stock with a 10.00% annual dividend rate on a $100 stated amount. The company has set aside a significant reserve to manage these payouts. Specifically, MicroStrategy Incorporated announced the establishment of a $1.44 billion USD reserve to keep preferred stock dividends and interest payments steady. This reserve is intended to cover at least 12 months of these obligations.

The preferred stock investors are seeking stability relative to the common stock's volatility. The annual cash dividend obligation on the 10.00% preferred stock, based on the 8,500,000 shares issued, would be $850 million annually, which aligns with the general need to cover significant fixed payments, including debt interest.

Here's the quick math on the two primary revenue/capital-attraction engines:

What this estimate hides is the massive difference in margin profile; the software business generates operating revenue, while the treasury strategy generates gains/losses through fair-value accounting on its assets. Finance: draft the 13-week cash view by Friday, focusing on the $1.44 billion reserve runway.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Cost Structure

You're looking at the expenses that keep MicroStrategy Incorporated running, especially as its dual focus on enterprise software and its Bitcoin treasury strategy matures. Honestly, the cost structure is dominated by the capital strategy now, but the software side still has its own operational burn rate.

Interest Expense and Preferred Stock Dividend Payments

The financing costs related to the Bitcoin strategy are substantial. As of late 2025, the market is factoring in significant annual obligations for servicing the debt and preferred equity used to acquire digital assets. The estimated annual requirement for these payments is approximately $800 million. This figure combines interest due on outstanding debt instruments and the cumulative dividends on the various preferred stock tranches issued throughout 2025.

The scale of the preferred stock issuance in 2025 was massive, with reported fundraising of $6.9 billion across five perpetual preferred shares by Q2 2025. One specific preferred stock, the 10.00% Series A Perpetual Strife Preferred Stock issued in March 2025, carried a 10.00% annual dividend rate on a $100 liquidation preference per share.

Here's a look at the capital structure activity driving these costs:

The company established a cash reserve of $1.44 billion to support these payments, implying a dividend coverage of 1.8 times based on the $800 million annual dividend/interest obligation.

Cloud Hosting Costs for Subscription Business

While a specific dollar amount for cloud hosting isn't broken out, the cost structure is directly influenced by the growth of the software subscription business. You can see the demand for this cost driver by looking at the revenue growth in the related segment. For the first quarter of 2025, Subscription Services Revenues increased by 61.6% year-over-year, reaching $37.1 million. This rapid scaling of the cloud-native analytics platform necessitates ongoing, and likely increasing, expenditure on infrastructure partners like Amazon Web Services and Google.

Software R&D and SG&A Expenses

The core software operations carry standard technology company expenses for Sales, General & Administrative (SG&A), and Research & Development (R&D). Using the Q1 2025 figures as the latest available snapshot for the software-related operating expenses:

• Research & Development Expenses: Approximately $73.14 million for the quarter ending March 31, 2025.
• General & Administrative Expenses: Approximately $79.46 million for the quarter ending March 31, 2025.
• Selling & Marketing Expenses: Approximately $158.28 million for the quarter ending March 31, 2025.

To be fair, these figures are for the entire company, but they represent the operational overhead supporting the software product line.

Costs Associated with Capital Raising

The costs here are primarily the underwriting fees, legal expenses, and other transactional costs associated with the aggressive capital raising under the '21/21 Plan.' The plan targets raising $21 billion in equity and $21 billion in fixed income securities between 2025 and 2027. The sheer volume of activity means these costs are material. For example, the company targeted a raise of up to $2 billion in perpetual preferred stock in Q1 2025, and later filed for a $4.2 billion Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) offering in Q2 2025. These issuance costs are a direct, non-recurring expense tied to expanding the Bitcoin treasury base.

The total capital raised through Q2 2025 was reported at $20.8 billion, which included common stock, preferred shares, and convertible bonds. Finance: draft 13-week cash view by Friday.

MicroStrategy Incorporated (MSTR) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for MicroStrategy Incorporated as of late 2025, and honestly, the story is split right down the middle between enterprise software and its massive digital asset treasury.

The most significant financial event in the third quarter of 2025 was the non-operating gains from the fair value appreciation of Bitcoin holdings. MicroStrategy Incorporated reported a Q3 2025 net profit of $2.8 billion. This profit was heavily influenced by an unrealized gain on its Bitcoin portfolio amounting to $3.9 billion in operating income for that quarter. As of October 26, 2025, the company held 640,808 BTC.

The core software business, while overshadowed by the Bitcoin gains, continues to operate and transition. You see the shift clearly in the Q1 2025 numbers, where the company's total revenues were $111.1 million.

Here's a breakdown of the key revenue components, showing how the software side contributes alongside the massive, non-operating Bitcoin impact:

The software business is clearly in a transition phase, moving from traditional license and support models to cloud-based subscriptions. The growth in subscription services is strong, but the legacy support revenue is declining. The company is definitely leaning into its digital asset strategy to drive headline profitability.

You can see the software revenue mix for Q1 2025 with these specific figures:

• Subscription Services Revenues: $37.1 million
• Product licenses and subscription services revenues: $44.4 million
• Product support revenues: $52.5 million
• Other Services Revenue (proxy for Consulting/Education): $14.2 million

The company's focus on capital markets to fund its Bitcoin strategy also generates revenue-adjacent cash flows, though not strictly operating revenue. For instance, year-to-date Q3 2025, the company achieved a 26% BTC yield. Finance: draft 13-week cash view by Friday.