On August 31, 2022, the District of Columbia (the "District"), through its
Office of the Attorney General, filed a civil complaint in the Superior Court of
the District of Columbia naming as defendants (i) Michael J. Saylor, the
Chairman of the Board of Directors of MicroStrategy Incorporated (the "Company")
and the Company's Executive Chairman, in his personal capacity, and (ii) the
Company. District of Columbia, et al. v. Michael J. Saylor, et al. The District
is seeking, among other relief, monetary damages under the District of
Columbia's False Claims Act for the alleged failure of Mr. Saylor to pay
personal income taxes to the District over a number of years together with
penalties, interest and treble damages. The complaint alleges that the amount of
personal income taxes purportedly involved is more than $25 million. The
complaint also alleges that the Company has violated the District's False Claims
Act by conspiring to assist Mr. Saylor's alleged failure to pay personal income
taxes. The Company believes that the District's claims against the Company have
no merit and intends to defend itself aggressively against these allegations.
MicroStrategy Incorporated is a bitcoin development company. It is engaged in the development of the bitcoin network through its activities in the financial markets, advocacy and technology. It designs, develops, markets and sales its software platform through licensing arrangements and cloud subscriptions and related services. It provides artificial intelligence-powered business intelligence, and enterprise analytics solutions. It offers software and services designed to turn complex, chaotic data environments into rich, reliable, and convenient information feeds for its customers. Its cloud-native flagship, MicroStrategy ONE, powers some of the analytics deployments in the world for customers spanning a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. MicroStrategy ONE provides non-technical users with the ability to directly access novel and actionable insights for decision-making.
MICROSTRATEGY INCORPORATED 
