Matt Sullivan

Seeing a bit of confusion out there around BTC Yield (growing BTC per share) being classified as a short-term KPI. The reason we classify it as a short-term KPI is because it is a metric we can influence through the course of our normal operations over relatively short timeframes. What we are effectively saying is that BTC Yield is the metric front and center as we run the business and capital markets each day. Management teams need to focus on the metrics directly within their control to guide daily decision-making. For us, that means driving towards positive BTC Yield. We believe the combination of growing BTC per share and maintaining high amplification while Bitcoin is near historically inexpensive levels creates the ideal setup to drive long-term outperformance of our common stock relative to Bitcoin. Amplification acts as a rate-limiting function on common equity issuance. If you issue too much common equity, amplification can decline quickly. As Bitcoin moves higher and amplification naturally declines, maintaining our target means leaning more heavily on products and capital formation strategies that increase amplification (preferred) rather than decreasing it (common). Amplification targets can and should adjust throughout market cycles, but issuing too much common equity during an early bull market move could erode amplification too quickly and take away some of the gain potentials as it is harder to move it back up to range as Bitcoin continues moving higher. Every action must be taken in balance, keeping you in position, with a focus on capturing and continuously growing value for shareholders over the long run. Our incentives are built around driving that outperformance. Management’s long-term incentives come in the form of common equity, so we are focused on taking the actions today that we believe will create the greatest long-term outcome. This is why alignment of incentives to common equity holders is so critical. “Show me the incentive and I will show you the outcome.” - Charlie Munger Every day brings new decisions. Define your strategy, set your targets, and execute relentlessly toward extraordinary outcomes.