FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * SAYLOR MICHAEL J   2. Issuer Name and Ticker or Trading Symbol MICROSTRATEGY INC [MSTR] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director __X__ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Chairman and CEO (Last) (First) (Middle) C/O MICROSTRATEGY INCORPORATED, 1861 INTERNATIONAL DRIVE 3. Date of Earliest Transaction (Month/Day/Year) 12/07/2004 (Street) MCLEAN, VA 22102 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Class A Common Stock 12/07/2004   M   10,000 A $ 20.69 10,000 D   Class A Common Stock 12/07/2004   S   1,800 D $ 66.38 8,200 (1) D   Class A Common Stock 12/07/2004   S   100 D $ 66.39 8,100 D   Class A Common Stock 12/07/2004   S   800 D $ 66.4 7,300 D   Class A Common Stock 12/07/2004   S   200 D $ 66.41 7,100 D   Class A Common Stock 12/07/2004   S   100 D $ 66.42 7,000 D   Class A Common Stock 12/07/2004   S   1,500 D $ 66.46 5,500 D   Class A Common Stock 12/07/2004   S   800 D $ 66.53 4,700 D   Class A Common Stock 12/07/2004   S   700 D $ 66.54 4,000 D   Class A Common Stock 12/07/2004   S   100 D $ 66.55 3,900 D   Class A Common Stock 12/07/2004   S   100 D $ 66.58 3,800 D   Class A Common Stock 12/07/2004   S   300 D $ 66.59 3,500 D   Class A Common Stock 12/07/2004   S   900 D $ 66.65 2,600 D   Class A Common Stock 12/07/2004   S   1,000 D $ 66.66 1,600 D   Class A Common Stock 12/07/2004   S   200 D $ 66.67 1,400 D   Class A Common Stock 12/07/2004   S   200 D $ 66.71 1,200 D   Class A Common Stock 12/07/2004   S   200 D $ 66.72 1,000 D   Class A Common Stock 12/07/2004   S   1,000 D $ 66.75 0 D   Class A Common Stock               882 I Shares owned by LLC (2)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Option (right to buy)

$ 20.69

12/07/2004

M

10,000

02/08/2004(3)

02/08/2013

Class A Common Stock

10,000

$ 0

399,800 (4)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
SAYLOR MICHAEL J C/O MICROSTRATEGY INCORPORATED 1861 INTERNATIONAL DRIVE MCLEAN, VA 22102	X	X	Chairman and CEO

Signatures

W. Ming Shao, As Attorney-in-Fact, Individually and as the Sole Member of Alcantara LLC		12/09/2004
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Separate open market sale transactions that were executed on December 7, 2004 at the same price have been reported on an aggregate basis on a single line in Table I. The order in which sale transactions are set forth in Table I is not necessarily reflective of the sequence in which the sale transactions occurred in fact.
(2)	These shares are owned directly by Alcantara LLC (the "LLC"), and indirectly by Michael J. Saylor as the sole member of the LLC. The LLC's address is the same as Mr. Saylor's address. The LLC has designated Mr. Saylor as the designated filer. Mr. Saylor is an officer, director and ten percent owner of the issuer.
(3)	The 10,000 shares exercised on 12/07/2004 were among a total of 82,000 shares that vested on 02/08/2004 pursuant to this stock option. The remaining 328,000 shares subject to the stock option vest in four equal annual installments beginning on 02/08/2005. This stock option expires on 02/08/2013.
(4)	See Exhibit A.

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