Head of Investor Relations
Operating Income of $21 Billion and Diluted EPS of $44.75 Digital Capital Highlights (as of October 25, 2026)
▪ $19.12 billion net income attributable to common stockholders and $44.75 diluted EPS in the third quarter of 2026
▪ $21.23 billion of capital raised year to date, 4 th largest equity issuer in the U.S.
▪ 76% MSTR stock price increase vs. 43% BTC price increase in the third quarter of 2026
▪ Returned STRC to health by executing $2.04 billion (1) of repurchases and growing USD Assets to $5.07 billion, providing 3.4 years of coverage on dividend and interest obligations
▪ Upgraded STRC to daily dividends starting November 1, 2026 and STRF, STRK, and STRD to daily dividends starting January 1, 2027
TYSONS CORNER, Va., October 29, 2026 – Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) (“Strategy” or the “Company”), the largest institutional holder of bitcoin and the world’s first Bitcoin Treasury Company, today announces financial results for the three-month period ended September 30, 2026 (the third quarter of its 2026 fiscal year).
“Strategy demonstrated its commitment to returning STRC to health. We grew our USD Assets to $5.1 billion, increased USD Duration to 3.4 years, and repurchased $2.0 billion of STRC. We also continued to innovate. With shareholder approval on October 28, we upgraded STRF, STRC, STRK, and STRD to daily dividends, so investors can accrue dividends every calendar day of the year, including weekends and holidays. Daily dividends are a natural step toward the tokenized, 24/7/365 financial system. Digital Credit is being built for that world, and Strategy intends to lead it,” said Phong Le, President and Chief Executive Officer.
“Q3 operating income of $21 billion was the largest ever in Strategy’s history. We've also raised $21 billion of equity capital and increased our bitcoin holdings by 26% year-to-date in a challenging bitcoin market. Lastly, it has been an honor and privilege to serve as Strategy’s CFO for the past four and a half years, and I am grateful for the support of Michael, Phong, the Board, our employees and our shareholders through the tremendous growth over that period,” said Andrew Kang, Chief Financial Officer.
“We’re at the beginning of the next bitcoin bull market. Banks are embracing bitcoin, bitcoin’s dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average. Digital Credit continues to grow, with $16 billion in notional value across ten publicly listed securities. Strategy continues to lead this industry with 84% market share and STRC returning to strength,” said Michael Saylor, Founder and Executive Chairman.
▪ Operating Income: Operating income for the third quarter of 2026 was $20.91 billion, compared to $3.89 billion of operating income for the third quarter of 2025. Operating income for the third quarter of 2026 includes a gain on the Company’s digital assets of $20.91 billion, compared to a gain on the Company’s digital assets of $3.89 billion for the third quarter of 2025.
▪ Net Income and Net Income Attributable to Common Stock: For the third quarter of 2026, the Company reported a net income of $19.53 billion, or diluted earnings per common share of $44.75, as compared to a net income of $2.79 billion, or diluted earnings per common share of $8.42, for the third quarter of 2025. Net income attributable to common stockholders for the third quarter of 2026 was $19.12 billion, reflecting $419.6 million of dividends on preferred stock, compared to net income attributable to common stockholders of $2.65 billion, reflecting $139.9 million of dividends on preferred stock, for the third quarter of 2025.
▪ Cash and Cash Equivalents, and Short-term Investments: As of September 30, 2026, the Company had cash and cash equivalents of $2.50 billion, as compared to $1.71 billion as of June 30, 2026. As of September 30, 2026, the Company had short-term investments of $3.40 billion, as compared to short-term investments of $736.1 million as of June 30, 2026.
▪ Revenues: Total revenues for the third quarter of 2026 were $125.4 million, compared to total revenues of $128.7 million for the third quarter of 2025, a 3% decrease year-over-year.
▪ Gross Profit: Gross profit for the third quarter of 2026 was $89.6 million, representing a 71% gross margin, compared to $90.7 million, representing a gross margin of 70%, for the third quarter of 2025.
▪ BTC $ Gain: BTC $ Gain of $(2.03) billion year to date 2026, based on the October 23, 2026 bitcoin market price of $81,200.
▪ Digital Assets: As of October 25, 2026, the Company’s digital assets were comprised of approximately 848,517 bitcoins, with an original cost basis and market value of $64.02 billion and $68.90 billion, respectively, which reflect an average cost per bitcoin of approximately $75,446 and a market price per bitcoin of approximately $81,200 as of October 23, 2026.
▪ ATM Offerings: The Company received net proceeds of approximately $5.41 billion during the three months ended September 30, 2026, and additional net proceeds of approximately $58.7 million between October 1, 2026 and October 23, 2026, from the following sales made under its at-the-market offering program ("ATM").
▪ STRC Stock Dividend: Since the start of FY 2026, the Company has declared and paid, or will pay, the following dividends on its STRC Stock:
(1) Represents the aggregate dividend per share for all daily record dates during the applicable month.
▪ USD Assets: The Company has grown the USD Reserve to $4.83 billion, while also establishing and growing USD Cash to $242.4 million, representing approximately 3.4 years of coverage reserved for preferred stock dividend payments and interest on outstanding indebtedness.
▪ STRC Dividend Policy: The Company has maintained the dividend rate at 12.00% to support STRC trading near its $100 per share stated amount.
▪ $3.0 Billion Digital Credit Securities Repurchase Program: Year to date, the Company repurchased 20,980,508 shares of STRC ($2.10 billion aggregate notional) for approximately $2.04 billion at an average price of $97.39 per share, an approximate 2.6% discount to the $100 per share stated amount. Approximately $956.7 million of
authorization remains available, and while STRC trades below $100 per share, the Company intends to be a regular and disciplined purchaser. ▪ $1.0 Billion MSTR Repurchase Program: No repurchases to date. The Company may consider repurchasing MSTR when management believes it is trading below intrinsic value, which would be accretive to common shareholders. ▪ BTC Monetization Program: The Company has board authorization to sell bitcoin to:
▪ Fund preferred stock dividends and interest expense as they become payable, or to replenish the USD Reserve after such payments; and
▪ Fund repurchases of MSTR or Digital Credit Securities under our repurchase programs.
The Company has sold approximately $431.8 million of bitcoin year to date 2026 to fund a portion of its preferred stock dividends and STRC buybacks.
Andrew Kang will step down as Executive Vice President and Chief Financial Officer effective November 5, 2026, and will remain with the Company in an advisory capacity through December 31, 2026. Phong Le, President and Chief Executive Officer, will serve as the Company's principal financial officer and assume responsibility for the finance organization during the transition, and effective January 1, 2027, Reza Virasteh, Strategy's current Executive Vice President of Operations, will become Executive Vice President and Chief Financial Officer, serving as co-principal financial officer alongside Mr. Le, who will retain responsibility for the financial management of the Company's bitcoin strategy.
Strategy believes that it will not have positive accumulated earnings & profits for U.S. federal income tax purposes (“E&P”), and does not expect to generate positive current E&P in the current year or the foreseeable future. Based on these expectations, Strategy expects the distributions paid on its preferred equity instruments to be treated as non-taxable return of capital ("ROC") for the foreseeable future (i.e., ten years or more).
Special tax considerations may apply to certain taxpayers based on their specific circumstances. Shareholders should consult their own tax advisors regarding the U.S. federal, state, local, and any non-U.S. tax consequences to them in connection with the receipt of any of these distributions. Strategy’s expectations on E&P may change, and any such change could affect the U.S. federal income tax treatment of the distributions.
Strategy maintains a dashboard on its website (www.strategy.com) as a disclosure channel for providing broad, non-exclusionary distribution of information regarding Strategy to the public, including information regarding market prices of its outstanding securities, bitcoin purchases and holdings, certain KPI metrics and other supplemental information, and as one means of disclosing non- public information in compliance with its disclosure obligations under Regulation FD. Investors and others are encouraged to regularly review the information that Strategy makes public via the website dashboard.
Strategy will be discussing its third quarter 2026 financial results on a live Video Webinar today beginning at approximately 5:00 p.m. ET. The live Video Webinar and accompanying presentation materials will be available under the “Events and Presentations” section of Strategy’s investor relations website at https://www.strategy.com/investor-relations. Log-in instructions will be available after registering for the event. An archived replay of the event will be available beginning approximately two hours after the call concludes.
Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) is the world's first and largest Bitcoin Treasury Company. We pursue financial innovation strategies designed to generate value from our bitcoin holdings, including developing and issuing novel fixed-income instruments that provide investors varying degrees of economic exposure to bitcoin. In addition, we are an industry leader in AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere™. We believe our combination of active bitcoin-focused capital management and a scaled
operating software business positions us for long-term value creation across both digital asset and enterprise analytics markets.
Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of Strategy Inc in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
The Company seeks to acquire bitcoin in a manner it believes to be accretive to common stockholders. To assess achievement of this strategy, the Company monitors and reviews the following Key Performance Indicators (“KPIs”):
) represents the ratio between the Company’s gross bitcoin holdings and its Assumed Diluted Shares Outstanding, expressed in terms of “Satoshis” or “Sats”, where:
▪ “Assumed Diluted Shares Outstanding” refers to the aggregate of the Company’s Basic Shares Outstanding as of the dates presented plus all additional shares that would result from the assumed conversion of all outstanding convertible notes and convertible preferred stock, exercise of all outstanding stock option awards, and settlement of all outstanding restricted stock units and performance stock units as of such dates. Assumed Diluted Shares Outstanding is not calculated using the treasury method, incorporates approximate forfeitures of awards in the current period which may be subject to future adjustment and does not take into account any vesting conditions (in the case of equity awards), the exercise price of any stock option awards or any contractual conditions limiting convertibility of convertible debt instruments.
▪ “Basic Shares Outstanding” reflects the actual class A common stock and class B common stock outstanding as of the dates presented. For purposes of this calculation, outstanding shares of such stock are deemed to include shares, if any, that (A) were sold under at-the-market equity offering programs, or (B) were issued pursuant to (i) options that had been exercised, (ii) restricted stock units that have vested or (iii) conversion requests received with respect to convertible securities, but which in each case were pending issuance as of the dates presented.
▪ A “Satoshi” or a “Sat” is one one-hundred-millionth of one bitcoin, currently the smallest indivisible unit of a bitcoin.
represents the percentage change in BPS (in Sats) over a period. It is calculated by dividing the difference in BPS between the beginning of a period and the end of a period by the BPS at the beginning of the period. For an interim Measurement Period that is part of a longer Reference Period, BTC Yield is calculated as the BTC Yield for the period from the beginning of the Reference Period to the end of the Measurement Period, less the BTC Yield for the period from the beginning of the Reference Period to the beginning of the Measurement Period.
represents the BTC Yield for a period in gross bitcoin terms. It is calculated by multiplying the BTC Yield for that period by the Company’s gross bitcoin holdings at the beginning of a specified period. For an interim Measurement Period that is part of a longer Reference Period, BTC Gain is calculated by multiplying the BTC Yield for the Measurement Period by the Company’s gross bitcoin holdings at the beginning of the Reference Period. ▪
represents BTC Gain as an illustrative dollar value. It is calculated by multiplying the BTC Gain by the market price of bitcoin as reported on the Coinbase exchange as of the applicable measurement time. “Measurement Period” refers to the period being measured, and “Reference Period” refers to the longer period of which the Measurement Period may be a sub-part. When the Company presents these metrics for an interim period within a fiscal year (e.g., a monthly, quarterly, or quarter-to-date period), then the Measurement Period is that interim period, and unless otherwise stated, the Reference Period is the fiscal year-to-date period ending on the last day of the Measurement Period. For example, assume BPS (in Sats) is 100 at the beginning of a fiscal year, 110 at the end of the first quarter and 125 at the end of the second quarter. The BTC Yield for the second quarter is calculated as (125/100 − 1) less (110/100 − 1), or 15%. The first and second quarter BTC Yields of 10% and 15%, respectively, sum to the year-to-date BTC Yield of 25%. With 1,000 bitcoin held at the beginning of the fiscal year, BTC Gain would be 100 bitcoin (10% × 1,000) and 150 bitcoin (15% × 1,000) for the first and second quarters, respectively, which sum to the year-to-date BTC Gain of 250 bitcoin.
For determining BTC $ Gain quarter to date and year to date, unless otherwise specified, the Company uses the current market price of bitcoin as reported on the Coinbase exchange as of the applicable measurement time. For determining BTC $ Gain for a past fiscal year or other past period, the Company uses the market price of bitcoin as of 4:00pm ET as reported on the Coinbase exchange on the last day of the applicable period, unless stated otherwise. These prices are used solely to facilitate these illustrative calculations.
The Company uses BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain as KPIs to help assess the performance of its strategy of acquiring bitcoin in a manner it believes to be accretive to shareholders. The Company also believes these KPIs can supplement investors’ understanding of how the Company chooses to fund bitcoin purchases and the value created in a period:
▪ BPS (in Sats) provides management and investors a baseline with which to assess the Company’s achievement of its strategy of acquiring bitcoin in an accretive manner over a given period. When evaluating a capital raise transaction, the Company considers the impact the transaction will have on this metric. This metric forms the baseline for the Company’s BTC Yield, BTC Gain and BTC $ Gain KPIs, each of which presents the change in BPS (in Sats) over a period in a different format.
▪ BTC Yield helps management and investors assess the Company’s achievement of its strategy of acquiring bitcoin in an accretive manner across periods. The Company uses BTC Yield to evaluate whether its capital markets activity and bitcoin acquisition strategy have resulted in gross per-share accretion (or dilution) on an Assumed Diluted Shares Outstanding basis over an applicable period, and to compare the impact of its strategy across periods.
▪ BTC Gain helps the Company measure the accretive or dilutive impact of the change in BPS (in Sats) over an applicable period in absolute terms relative to the Company’s bitcoin holdings. This metric can be particularly helpful when comparing the execution of the Company’s capital markets strategy across periods. A larger bitcoin asset base may produce a lower BTC Yield but the same BTC Gain. For example, a 10% BTC Yield on 100,000 bitcoin and a 5% BTC Yield on 200,000 bitcoin each result in a BTC Gain of 10,000 bitcoin.
▪ BTC $ Gain further expresses the percentage change reflected in the BTC Yield metric as an illustrative dollar value by multiplying that bitcoin-denominated change by the market price of bitcoin at the end of the applicable period as described above. The Company refers to this metric for illustrative purposes to consider the magnitude of BTC Gain with reference to the market price of bitcoin.
When management uses these metrics, management takes into account their various limitations. With respect to BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain, these limitations include that the metrics:
▪ do not take into account that the Company’s assets, including its bitcoin, are subject to (i) all of the Company’s existing and future liabilities, including its debt, and (ii) the preferential rights of the Company’s preferred stockholders to dividends and the Company’s assets in a liquidation, and that all such claims rank senior to those of the Company’s common equity. Therefore, holders of such excluded instruments may have claims on the Company’s assets (including bitcoin) senior to those of holders of common stock in the event of the Company’s liquidation. As a result, the additional bitcoin acquired using proceeds from the sale of such instruments may not accrete to common stockholders; and
▪ assume that all indebtedness will be refinanced or, in the case of the Company’s senior convertible debt instruments and convertible preferred stock, converted into shares of class A common stock in accordance with their respective terms.
Different assumptions would produce materially different results, and these KPIs may overstate or understate the Company’s bitcoin that would remain attributable to holders of common stock after accounting for senior claims (net of the Company’s USD Assets).
BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain are not, and should not be understood as, financial performance, valuation or liquidity measures. Specifically:
▪ BPS (in Sats) does not represent (i) the Company's ability to satisfy its financial obligations, or (ii) the Company’s book value per share.
▪ BTC Yield is not equivalent to “yield” in the traditional financial context. It is not a measure of the return on investment the Company’s shareholders may have achieved historically or can achieve in the future by purchasing stock of the Company. Nor is it a measure of income generated by the Company’s operations or its bitcoin holdings, return on investment on its bitcoin holdings, or any other similar financial measure of the performance of its business or assets.
▪ BTC Gain and BTC $ Gain are not equivalent to “gain” in the traditional financial context. They also are not measures of the return on investment the Company’s shareholders may have achieved historically or can achieve in the future by purchasing stock of the Company. Nor are they measures of income generated by the Company’s operations or its bitcoin holdings, return on investment on its bitcoin holdings, or any other similar financial measure of the performance of its business or assets. BTC $ Gain also does not represent a fair value gain of the Company’s bitcoin holdings nor any other realized or unrealized financial gain. BTC $ Gain may be positive
during periods when the Company has incurred fair value losses on its bitcoin holdings, or negative during periods when the Company has incurred fair value gains on its bitcoin holdings.
The trading price of the Company’s class A common stock is informed by numerous factors in addition to the Company’s bitcoin holdings and its actual or potential shares of common stock outstanding. As a result, the trading price of the Company’s securities can deviate significantly from the fair market value of the Company’s bitcoin. None of BPS (in Sats), BTC Yield, BTC Gain or BTC $ Gain is indicative or predictive of the trading price of the Company’s securities.
Investors should rely on the financial statements and other disclosures contained in the Company’s SEC filings. In particular, the Company has adopted Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”). ASU 2023-08 requires the Company to measure its bitcoin at fair value in its statement of financial position as of the end of a reported period, and to recognize gains and losses from changes in the fair value in net income (loss) for the reported period. As a result, the Company may incur unrealized gain or loss on digital assets based on changes in the market price of bitcoin during a period, as well as gain or loss from the sale of digital assets during a period. These gains and losses are not reflected in BPS (in Sats), BTC Yield, BTC Gain or BTC $ Gain. For example, if the Company increases its bitcoin holdings relative to Assumed Diluted Shares Outstanding during a reported period, the Company would achieve increased BPS (in Sats) and positive BTC Yield, BTC Gain and BTC $ Gain even if the Company reports significant realized or unrealized loss on digital assets for the period. Similarly, if the Company increases Assumed Diluted Shares Outstanding at a faster rate than its bitcoin holdings, then the Company would experience decreased BPS (in Sats) and negative BTC Yield, BTC Gain, and BTC $ Gain, even if the Company reports significant unrealized gain on digital assets for the period.
As noted above, these KPIs are narrow in purpose and are used by management to help assess whether the Company is raising and deploying capital in a manner accretive to shareholders solely as it pertains to its bitcoin holdings. References to a transaction, or to the Company’s capital deployment, being “accretive” or “dilutive” refer only to the effect on the specified KPI under the stated assumptions. They do not mean that the transaction is accretive or dilutive to the Company’s earnings, cash flow, book value, enterprise value, intrinsic value, or the trading price of the Company’s securities.
In calculating BPS (in Sats), BTC Yield, BTC Gain, and BTC $ Gain, the Company does not consider the source of capital used to acquire its bitcoin. When the Company purchases bitcoin using proceeds from offerings of non-convertible notes or non-convertible preferred stock, or convertible notes or preferred stock that carry conversion prices above the current trading price of the Company's common stock or conversion rights that are not then exercisable, such transactions have the effect of increasing the BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain, while also increasing the Company’s indebtedness and senior claims of holders of instruments other than class A common stock with respect to dividends and to the Company’s assets, including its bitcoin, if the Company were to liquidate, in a manner that is not reflected in these metrics.
If any of the Company’s convertible notes mature or are redeemed without being converted into common stock, or if the Company elects to redeem or repurchase its non-convertible instruments (including certain of its perpetual preferred stock), the Company may be required to sell shares of its class A common stock or bitcoin to generate sufficient cash proceeds to satisfy those obligations, either of which would have the effect of decreasing BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain. The assumptions used in calculating these metrics do not contemplate adjustments for such decreases. Accordingly, these metrics might overstate or understate the accretive nature of the Company’s use of capital to buy bitcoin because not all bitcoin is purchased using proceeds from issuances of class A common stock, instruments that are convertible into class A common stock may be forfeited or repaid with funds other than from the sale of class A common stock in the period in question rather than being exercised for or converted into class A common stock and not all proceeds from issuances of class A common stock are used to purchase bitcoin.
In addition, the Company is required to pay dividends with respect to its perpetual preferred stock in perpetuity. The Company could pay these dividends with cash or, in the case of STRK Stock, by issuing shares of class A common stock. The Company has issued shares of class A common stock and certain series of its preferred stock for cash to fund the payment of cash dividends. In the future, the Company may also issue shares of class A common stock in lieu of paying dividends on STRK Stock. As a result, the Company has experienced, and may experience in the future, increases in Assumed Diluted Shares Outstanding without corresponding increases in its bitcoin holdings, resulting in decreases in BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain for the applicable periods.
The Company has historically not paid any dividends on its shares of class A common stock, and by presenting these KPIs the Company makes no suggestion that it intends to do so in the future. Holders of the Company’s securities, including its class A common stock and preferred stock, have no ownership interest in, or redemption right with respect to, the Company's bitcoin holdings.
The Company determines its KPI targets based on its history and future goals. The Company’s ability to maintain any given level of BPS (in Sats), or achieve positive BTC Yield, BTC Gain, or BTC $ Gain may depend on a variety of factors, including factors outside of its control, such as the price of bitcoin, and the availability of debt and equity financing on favorable terms. Past performance is not indicative of future results, and the Company’s KPI results for any particular interim period may not be indicative of its ability to achieve longer-term objectives under its bitcoin strategy. Additionally, the Company’s KPIs may improve, and the Company may achieve its targets or objectives, even as it incurs losses or the market price of its class A common stock declines.
These KPIs are merely supplements, not substitutes for the financial statements and other disclosures contained in the Company’s SEC filings. They should be used only by sophisticated investors who understand their limited purpose and many limitations. Investors are cautioned not to place undue reliance on the Company’s KPIs or interpret the Company’s targets as assurances of financial performance or stockholder returns.
This press release may include statements that may constitute “forward-looking statements,” including estimates of future business prospects, including statements relating to corporate objectives with respect to the trading price of the Company’s Variable Rate Series A Perpetual Stretch Preferred Stock, statements relating to potential future equity repurchases, statements relating to the Company's expectation regarding the tax-deferred return of capital treatment of distributions on its preferred stock, and statements containing the words “believe,” “estimate,” “project,” “expect,” “will,” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of Strategy Inc and its subsidiaries (the "Company") to differ materially from the forward-looking statements. Factors that could contribute to such differences include: fluctuations in the market price of bitcoin and any associated gains or losses on digital assets that the Company may record in its financial statements as a result of a change in the market price of bitcoin from the value at which the Company’s bitcoins are carried on its balance sheet; the availability of debt and equity financing on favorable terms; gains or losses on any sales of bitcoins; changes in the accounting treatment relating to the Company’s bitcoin holdings; changes in securities laws or other laws or regulations, or the adoption of new laws or regulations, relating to bitcoin that adversely affect the price of bitcoin or the Company’s ability to transact in or own bitcoin; changes in the Company’s tax earnings & profits that may impact return of capital tax treatment on future dividends on the Company’s preferred stock; the impact of the availability of spot exchange traded products and other investment vehicles for bitcoin and other digital assets; a decrease in liquidity in the markets in which bitcoin is traded; security breaches, cyberattacks, unauthorized access, loss of private keys, fraud or other circumstances or events that result in the loss of the Company’s bitcoins; impacts to the price and rate of adoption of bitcoin associated with financial difficulties and bankruptcies of various participants in the digital asset industry; the level and terms of the Company’s substantial indebtedness and its ability to service such debt; the extent and timing of market acceptance of the Company’s new product offerings; continued acceptance of the Company’s other products in the marketplace; the Company’s ability to recognize revenue or deferred revenue through delivery of products or satisfactory performance of services; the timing of significant orders; delays in or the inability of the Company to develop or ship new products; customers continuing to shift from a product license model to a cloud subscription model, which may delay the Company’s ability to recognize revenue; fluctuations in tax benefits or provisions; changes in the market price of bitcoin as of period-end and their effect on our deferred tax assets, related valuation allowance, and tax expense; other potentially adverse tax consequences; competitive factors; general economic conditions, including levels of inflation and interest rates; currency fluctuations; and other risks detailed in the Company’s registration statements and periodic and current reports filed with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this release, except as required by law.
(1) Basic and fully diluted earnings (loss) per common share for class A and class B common stock are the same.
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── -unaudited Assets Current assets: Cash and cash $ 2,501,456 $ 2,301,470 equivalents Restricted cash 1,671 1,873 Short-term 3,404,457 — investments Accounts 129,933 205,748 receivable, net Prepaid expenses and other current 70,096 55,046 assets Total current 6,107,613 2,564,137 assets Digital assets 70,824,007 58,854,028 Property and 27,223 28,858 equipment, net Right-of-use assets 60,684 46,975 Deposits and other 126,875 142,577 assets Deferred tax assets 5,147 4,507 Total assets $ 77,151,549 $ 61,641,082 Liabilities, Mezzanine Equity and Stockholders' Equity Current liabilities: Current portion of $ 1,045,669 $ 31,313 long-term debt, net Accounts payable, accrued expenses, and 79,298 50,335 operating lease liabilities Accrued compensation and 37,265 69,986 employee benefits Accrued interest 5,970 5,619 Preferred dividends 136,447 27,121 payable Deferred revenue and advance 206,722 272,118 payments Total current 1,511,371 456,492 liabilities Long-term debt, net 5,669,745 8,158,842 Deferred revenue and advance 2,706 5,451 payments Operating lease 60,813 46,135 liabilities Other long-term 5,031 4,736 liabilities Deferred tax 1,404,407 1,926,454 liabilities Total liabilities 8,654,073 10,598,110 Commitments and Contingencies Mezzanine Equity Series A Perpetual Preferred Stock, $0.001 par value; 411,023 and 442,361 shares authorized; 139,599 and 78,183 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively; 13,056,250 6,919,514 redemption value and liquidation preference of $14,109,839 and $8,032,324 at September 30, 2026 and December 31, 2025, respectively Stockholders’ Equity Preferred stock undesignated, $0.001 par value; 593,977 and 562,639 shares authorized, no — — shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively Class A common stock, $0.001 par value; 10,330,000 and 10,330,000 shares authorized, 402,338 and 292,422 shares 402 292 issued and outstanding at September 30, 2026 and December 31, 2025, respectively Class B common stock, $0.001 par value; 165,000 shares authorized, 19,640 shares 20 20 issued and outstanding at both September 30, 2026 and December 31, 2025 Additional paid-in 51,516,192 37,806,554 capital Accumulated other -14,273 -5,171 comprehensive loss Retained earnings 3,938,885 6,321,763 Total stockholders’ 55,441,226 44,123,458 equity Total liabilities, mezzanine equity and $ 77,151,549 $ 61,641,082 stockholders' equity
(a) In the first quarter of 2025, we purchased bitcoin using $4.37 billion of the net proceeds from ATM sales of class A common stock, $1.99 billion of the net proceeds from our issuance of the 2030B Convertible Notes, $593.7 million of the aggregate net proceeds from the initial public offering and ATM sales of STRK Stock, and $710.0 million of the net proceeds from the initial public offering of STRF Stock.
(b) In the second quarter of 2025, we purchased bitcoin using $5.19 billion of the net proceeds from ATM sales of class A common stock, $979.7 million of the net proceeds from our initial public offering of STRD Stock, $163.0 million of the net proceeds from ATM sales of STRF Stock, and $438.0 million of the net proceeds from ATM sales of STRK Stock.
(c) In the third quarter of 2025, we purchased bitcoin using $209.5 million of the net proceeds from ATM issuances of STRF Stock, $153.1 million of the net proceeds from ATM issuances of STRK Stock, $48.5 million of the net proceeds from ATM issuances of STRD Stock, $2.07 billion of the net proceeds from ATM issuances of class A common stock, and $2.47 billion of the net proceeds from the initial public offering of STRC Stock. (d) In the first quarter of 2026, we purchased bitcoin using $2.06 billion of the net proceeds from ATM sales of STRC Stock, $3.3 million of the net proceeds from ATM sales of STRK Stock and $5.19 billion of the net proceeds from ATM sales of class A common stock.
(e) In the second quarter of 2026, we purchased bitcoin using $5.46 billion of the net proceeds from ATM sales of STRC Stock, and $0.96 billion of the net proceeds from ATM sales of class A common stock.
(f) The proceeds from these sales were used to fund dividend payments on Preferred Stock.
(g) In the third quarter of 2026, we purchased bitcoin using $588.1 million of the net proceeds from ATM sales of class A common stock.
(h) The proceeds from these sales were used to fund $239.9 million of dividend payments on Preferred Stock and to repurchase $108.6 million of STRC Stock.
Full text with the tables
Exhibit 99.1
Contact:
Strategy
CJ (Chaitanya Jain)
Head of Investor Relations
ir@strategy.com
Strategy Announces Third Quarter Financial Results;
Operating Income of $21 Billion and Diluted EPS of $44.75
Digital Capital Highlights (as of October 25, 2026)
▪ 848,517 bitcoin holdings, 26% growth year to date 2026
▪ $20.91 billion gain on digital assets in the third quarter of 2026
▪ $14.33 billion of bitcoin purchased year to date 2026
Digital Equity Highlights (as of October 25, 2026)
▪ $19.12 billion net income attributable to common stockholders and $44.75
diluted EPS in the third quarter of 2026
▪ $21.23 billion of capital raised year to date, 4 th largest equity issuer in
the U.S.
▪ 76% MSTR stock price increase vs. 43% BTC price increase in the third quarter
of 2026
Digital Credit Highlights (as of October 25, 2026)
▪ Returned STRC to health by executing $2.04 billion (1) of repurchases and
growing USD Assets to $5.07 billion, providing 3.4 years of coverage on dividend
and interest obligations
▪ Upgraded STRC to daily dividends starting November 1, 2026 and STRF, STRK, and
STRD to daily dividends starting January 1, 2027
▪ $1.48 billion in cumulative dividends paid on all preferred stock to date
(1) Includes shares repurchased but not yet settled as of October 25, 2026.
TYSONS CORNER, Va., October 29, 2026 – Strategy Inc (Nasdaq:
STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) (“Strategy” or the “Company”), the
largest institutional holder of bitcoin and the world’s first Bitcoin Treasury
Company, today announces financial results for the three-month period ended
September 30, 2026 (the third quarter of its 2026 fiscal year).
“Strategy demonstrated its commitment to returning STRC to health. We grew our
USD Assets to $5.1 billion, increased USD Duration to 3.4 years, and repurchased
$2.0 billion of STRC. We also continued to innovate. With shareholder approval
on October 28, we upgraded STRF, STRC, STRK, and STRD to daily dividends, so
investors can accrue dividends every calendar day of the year, including
weekends and holidays. Daily dividends are a natural step toward the tokenized,
24/7/365 financial system. Digital Credit is being built for that world, and
Strategy intends to lead it,” said Phong Le, President and Chief Executive
Officer.
“Q3 operating income of $21 billion was the largest ever in Strategy’s history.
We've also raised $21 billion of equity capital and increased our bitcoin
holdings by 26% year-to-date in a challenging bitcoin market. Lastly, it has
been an honor and privilege to serve as Strategy’s CFO for the past four and a
half years, and I am grateful for the support of Michael, Phong, the Board, our
employees and our shareholders through the tremendous growth over that period,”
said Andrew Kang, Chief Financial Officer.
“We’re at the beginning of the next bitcoin bull market. Banks are embracing
bitcoin, bitcoin’s dominance among digital assets is growing, institutional
demand is back, and bitcoin price is 21% above its 200-week moving average.
Digital Credit continues to grow, with $16 billion in notional value across ten
publicly listed securities. Strategy continues to lead this industry with 84%
market share and STRC returning to strength,” said Michael Saylor, Founder and
Executive Chairman.
Q3 Financial Summary
▪ Operating Income: Operating income for the third quarter of 2026 was $20.91
billion, compared to $3.89 billion of operating income for the third quarter of
2025. Operating income for the third quarter of 2026 includes a gain on the
Company’s digital assets of $20.91 billion, compared to a gain on the Company’s
digital assets of $3.89 billion for the third quarter of 2025.
▪ Net Income and Net Income Attributable to Common Stock: For the third quarter
of 2026, the Company reported a net income of $19.53 billion, or diluted
earnings per common share of $44.75, as compared to a net income of $2.79
billion, or diluted earnings per common share of $8.42, for the third quarter of
2025. Net income attributable to common stockholders for the third quarter of
2026 was $19.12 billion, reflecting $419.6 million of dividends on preferred
stock, compared to net income attributable to common stockholders of $2.65
billion, reflecting $139.9 million of dividends on preferred stock, for the
third quarter of 2025.
▪ Cash and Cash Equivalents, and Short-term Investments: As of September 30,
2026, the Company had cash and cash equivalents of $2.50 billion, as compared to
$1.71 billion as of June 30, 2026. As of September 30, 2026, the Company had
short-term investments of $3.40 billion, as compared to short-term investments
of $736.1 million as of June 30, 2026.
▪ Revenues: Total revenues for the third quarter of 2026 were $125.4 million,
compared to total revenues of $128.7 million for the third quarter of 2025, a 3%
decrease year-over-year.
▪ Gross Profit: Gross profit for the third quarter of 2026 was $89.6 million,
representing a 71% gross margin, compared to $90.7 million, representing a gross
margin of 70%, for the third quarter of 2025.
Bitcoin Summary (as of October 25, 2026)
▪ BTC Yield: BTC Yield of (3.7)% year to date 2026.
▪ BTC Gain: BTC Gain of (24,947) year to date 2026.
▪ BTC $ Gain: BTC $ Gain of $(2.03) billion year to date 2026, based on the
October 23, 2026 bitcoin market price of $81,200.
▪ Digital Assets: As of October 25, 2026, the Company’s digital assets were
comprised of approximately 848,517 bitcoins, with an original cost basis and
market value of $64.02 billion and $68.90 billion, respectively, which reflect
an average cost per bitcoin of approximately $75,446 and a market price per
bitcoin of approximately $81,200 as of October 23, 2026.
Capital Markets Summary (as of October 25, 2026)
▪ ATM Offerings: The Company received net proceeds of approximately $5.41
billion during the three months ended September 30, 2026, and additional net
proceeds of approximately $58.7 million between October 1, 2026 and October 23,
2026, from the following sales made under its at-the-market offering program
("ATM").
Q3 FY 2026 QTD Q4 FY 2026
Net Proceeds (in Net Proceeds (in
Securities millions) millions)
──────────────────────────────────────────────────────────────────────────────
MSTR $ 5,407.7 $ 58.7
STRC — —
STRK — —
STRF — —
STRD — —
Total $ 5,407.7 $ 58.7
▪ STRC Stock Dividend: Since the start of FY 2026, the Company has declared and
paid, or will pay, the following dividends on its STRC Stock:
Record Date Annualized STRC Dividend Payment Date
Rate (USD/Share)
Monthly STRC
Dividends
January 15, 11.00% $0.92 January 31, 2026
2026
February 15, 11.25% $0.94 February 28, 2026
2026
March 15, 2026 11.50% $0.96 March 31, 2026
April 15, 2026 11.50% $0.96 April 30, 2026
May 15, 2026 11.50% $0.96 May 31, 2026
June 15, 2026 11.50% $0.96 June 30, 2026
Semi-Monthly
STRC Dividends
June 30, 2026 11.50% $0.48 July 15, 2026
July 15, 2026 12.00% $0.50 July 31, 2026
July 31, 2026 12.00% $0.50 August 15, 2026
August 15, 2026 12.00% $0.50 August 31, 2026
August 31, 2026 12.00% $0.50 September 15,
2026
September 15, 12.00% $0.50 September 30,
2026 2026
September 30, 12.00% $0.50 October 15, 2026
2026
October 15, 12.00% $0.50 October 31, 2026
2026
Daily STRC
Dividends(1)
November 2026 12.00% $1.00 -2
(1) Represents the aggregate dividend per share for all daily record dates
during the applicable month.
(2) Every business day from November 2 to December 1, inclusive.
Digital Credit Capital Framework Summary (as of October 25, 2026)
▪ USD Assets: The Company has grown the USD Reserve to $4.83 billion, while also
establishing and growing USD Cash to $242.4 million, representing approximately
3.4 years of coverage reserved for preferred stock dividend payments and
interest on outstanding indebtedness.
▪ STRC Dividend Policy: The Company has maintained the dividend rate at 12.00%
to support STRC trading near its $100 per share stated amount.
▪ $3.0 Billion Digital Credit Securities Repurchase Program: Year to date, the
Company repurchased 20,980,508 shares of STRC ($2.10 billion aggregate notional)
for approximately $2.04 billion at an average price of $97.39 per share, an
approximate 2.6% discount to the $100 per share stated amount. Approximately
$956.7 million of
authorization remains available, and while STRC trades below $100 per share, the
Company intends to be a regular and disciplined purchaser.
▪ $1.0 Billion MSTR Repurchase Program: No repurchases to date. The Company may
consider repurchasing MSTR when management believes it is trading below
intrinsic value, which would be accretive to common shareholders.
▪ BTC Monetization Program: The Company has board authorization to sell bitcoin
to:
▪ Fund the USD Reserve up to $1.25 billion of bitcoin sales;
▪ Fund preferred stock dividends and interest expense as they become payable, or
to replenish the USD Reserve after such payments; and
▪ Fund repurchases of MSTR or Digital Credit Securities under our repurchase
programs.
The Company has sold approximately $431.8 million of bitcoin year to date 2026
to fund a portion of its preferred stock dividends and STRC buybacks.
Chief Financial Officer Transition
Andrew Kang will step down as Executive Vice President and Chief Financial
Officer effective November 5, 2026, and will remain with the Company in an
advisory capacity through December 31, 2026. Phong Le, President and Chief
Executive Officer, will serve as the Company's principal financial officer and
assume responsibility for the finance organization during the transition, and
effective January 1, 2027, Reza Virasteh, Strategy's current Executive Vice
President of Operations, will become Executive Vice President and Chief
Financial Officer, serving as co-principal financial officer alongside Mr. Le,
who will retain responsibility for the financial management of the Company's
bitcoin strategy.
ROC Dividend Guidance
Strategy believes that it will not have positive accumulated earnings & profits
for U.S. federal income tax purposes (“E&P”), and does not expect to generate
positive current E&P in the current year or the foreseeable future. Based on
these expectations, Strategy expects the distributions paid on its preferred
equity instruments to be treated as non-taxable return of capital ("ROC") for
the foreseeable future (i.e., ten years or more).
Special tax considerations may apply to certain taxpayers based on their
specific circumstances. Shareholders should consult their own tax advisors
regarding the U.S. federal, state, local, and any non-U.S. tax consequences to
them in connection with the receipt of any of these distributions. Strategy’s
expectations on E&P may change, and any such change could affect the U.S.
federal income tax treatment of the distributions.
Strategy Dashboard
Strategy maintains a dashboard on its website (www.strategy.com) as a disclosure
channel for providing broad, non-exclusionary distribution of information
regarding Strategy to the public, including information regarding market prices
of its outstanding securities, bitcoin purchases and holdings, certain KPI
metrics and other supplemental information, and as one means of disclosing non-
public information in compliance with its disclosure obligations under
Regulation FD. Investors and others are encouraged to regularly review the
information that Strategy makes public via the website dashboard.
Conference Call
Strategy will be discussing its third quarter 2026 financial results on a live
Video Webinar today beginning at approximately 5:00 p.m. ET. The live Video
Webinar and accompanying presentation materials will be available under the
“Events and Presentations” section of Strategy’s investor relations website at
https://www.strategy.com/investor-relations. Log-in instructions will be
available after registering for the event. An archived replay of the event will
be available beginning approximately two hours after the call concludes.
About Strategy
Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) is the world's
first and largest Bitcoin Treasury Company. We pursue financial innovation
strategies designed to generate value from our bitcoin holdings, including
developing and issuing novel fixed-income instruments that provide investors
varying degrees of economic exposure to bitcoin. In addition, we are an industry
leader in AI-powered enterprise analytics software, advancing our vision of
Intelligence Everywhere™. We believe our combination of active bitcoin-focused
capital management and a scaled
operating software business positions us for long-term value creation across
both digital asset and enterprise analytics markets.
Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or
registered trademarks of Strategy Inc in the United States and certain other
countries. Other product and company names mentioned herein may be the
trademarks of their respective owners.
Important Information About KPIs
The Company seeks to acquire bitcoin in a manner it believes to be accretive to
common stockholders. To assess achievement of this strategy, the Company
monitors and reviews the following Key Performance Indicators (“KPIs”):
▪
Bitcoin Per Share (in Sats)
(or
BPS (in Sats)
) represents the ratio between the Company’s gross bitcoin holdings and its
Assumed Diluted Shares Outstanding, expressed in terms of “Satoshis” or “Sats”,
where:
▪ “Assumed Diluted Shares Outstanding” refers to the aggregate of the Company’s
Basic Shares Outstanding as of the dates presented plus all additional shares
that would result from the assumed conversion of all outstanding convertible
notes and convertible preferred stock, exercise of all outstanding stock option
awards, and settlement of all outstanding restricted stock units and performance
stock units as of such dates. Assumed Diluted Shares Outstanding is not
calculated using the treasury method, incorporates approximate forfeitures of
awards in the current period which may be subject to future adjustment and does
not take into account any vesting conditions (in the case of equity awards), the
exercise price of any stock option awards or any contractual conditions limiting
convertibility of convertible debt instruments.
▪ “Basic Shares Outstanding” reflects the actual class A common stock and class
B common stock outstanding as of the dates presented. For purposes of this
calculation, outstanding shares of such stock are deemed to include shares, if
any, that (A) were sold under at-the-market equity offering programs, or (B)
were issued pursuant to (i) options that had been exercised, (ii) restricted
stock units that have vested or (iii) conversion requests received with respect
to convertible securities, but which in each case were pending issuance as of
the dates presented.
▪ A “Satoshi” or a “Sat” is one one-hundred-millionth of one bitcoin, currently
the smallest indivisible unit of a bitcoin.
▪
BTC Yield
represents the percentage change in BPS (in Sats) over a period. It is
calculated by dividing the difference in BPS between the beginning of a period
and the end of a period by the BPS at the beginning of the period. For an
interim Measurement Period that is part of a longer Reference Period, BTC Yield
is calculated as the BTC Yield for the period from the beginning of the
Reference Period to the end of the Measurement Period, less the BTC Yield for
the period from the beginning of the Reference Period to the beginning of the
Measurement Period.
▪
BTC Gain
represents the BTC Yield for a period in gross bitcoin terms. It is calculated
by multiplying the BTC Yield for that period by the Company’s gross bitcoin
holdings at the beginning of a specified period. For an interim Measurement
Period that is part of a longer Reference Period, BTC Gain is calculated by
multiplying the BTC Yield for the Measurement Period by the Company’s gross
bitcoin holdings at the beginning of the Reference Period.
▪
BTC $ Gain
represents BTC Gain as an illustrative dollar value. It is calculated by
multiplying the BTC Gain by the market price of bitcoin as reported on the
Coinbase exchange as of the applicable measurement time.
“Measurement Period” refers to the period being measured, and “Reference Period”
refers to the longer period of which the Measurement Period may be a sub-part.
When the Company presents these metrics for an interim period within a fiscal
year (e.g., a monthly, quarterly, or quarter-to-date period), then the
Measurement Period is that interim period, and unless otherwise stated, the
Reference Period is the fiscal year-to-date period ending on the last day of the
Measurement Period. For example, assume BPS (in Sats) is 100 at the beginning of
a fiscal year, 110 at the end of the first quarter and 125 at the end of the
second quarter. The BTC Yield for the second quarter is calculated as (125/100 −
1) less (110/100 − 1), or 15%. The first and second quarter BTC Yields of 10%
and 15%, respectively, sum to the year-to-date BTC Yield of 25%. With 1,000
bitcoin held at the beginning of the fiscal year, BTC Gain would be 100 bitcoin
(10% × 1,000) and 150 bitcoin (15% × 1,000) for the first and second quarters,
respectively, which sum to the year-to-date BTC Gain of 250 bitcoin.
For determining BTC $ Gain quarter to date and year to date, unless otherwise
specified, the Company uses the current market price of bitcoin as reported on
the Coinbase exchange as of the applicable measurement time. For determining BTC
$ Gain for a past fiscal year or other past period, the Company uses the market
price of bitcoin as of 4:00pm ET as reported on the Coinbase exchange on the
last day of the applicable period, unless stated otherwise. These prices are
used solely to facilitate these illustrative calculations.
The Company uses BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain as KPIs to
help assess the performance of its strategy of acquiring bitcoin in a manner it
believes to be accretive to shareholders. The Company also believes these KPIs
can supplement investors’ understanding of how the Company chooses to fund
bitcoin purchases and the value created in a period:
▪ BPS (in Sats) provides management and investors a baseline with which to
assess the Company’s achievement of its strategy of acquiring bitcoin in an
accretive manner over a given period. When evaluating a capital raise
transaction, the Company considers the impact the transaction will have on this
metric. This metric forms the baseline for the Company’s BTC Yield, BTC Gain and
BTC $ Gain KPIs, each of which presents the change in BPS (in Sats) over a
period in a different format.
▪ BTC Yield helps management and investors assess the Company’s achievement of
its strategy of acquiring bitcoin in an accretive manner across periods. The
Company uses BTC Yield to evaluate whether its capital markets activity and
bitcoin acquisition strategy have resulted in gross per-share accretion (or
dilution) on an Assumed Diluted Shares Outstanding basis over an applicable
period, and to compare the impact of its strategy across periods.
▪ BTC Gain helps the Company measure the accretive or dilutive impact of the
change in BPS (in Sats) over an applicable period in absolute terms relative to
the Company’s bitcoin holdings. This metric can be particularly helpful when
comparing the execution of the Company’s capital markets strategy across
periods. A larger bitcoin asset base may produce a lower BTC Yield but the same
BTC Gain. For example, a 10% BTC Yield on 100,000 bitcoin and a 5% BTC Yield on
200,000 bitcoin each result in a BTC Gain of 10,000 bitcoin.
▪ BTC $ Gain further expresses the percentage change reflected in the BTC Yield
metric as an illustrative dollar value by multiplying that bitcoin-denominated
change by the market price of bitcoin at the end of the applicable period as
described above. The Company refers to this metric for illustrative purposes to
consider the magnitude of BTC Gain with reference to the market price of
bitcoin.
When management uses these metrics, management takes into account their various
limitations. With respect to BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain,
these limitations include that the metrics:
▪ do not take into account that the Company’s assets, including its bitcoin, are
subject to (i) all of the Company’s existing and future liabilities, including
its debt, and (ii) the preferential rights of the Company’s preferred
stockholders to dividends and the Company’s assets in a liquidation, and that
all such claims rank senior to those of the Company’s common equity. Therefore,
holders of such excluded instruments may have claims on the Company’s assets
(including bitcoin) senior to those of holders of common stock in the event of
the Company’s liquidation. As a result, the additional bitcoin acquired using
proceeds from the sale of such instruments may not accrete to common
stockholders; and
▪ assume that all indebtedness will be refinanced or, in the case of the
Company’s senior convertible debt instruments and convertible preferred stock,
converted into shares of class A common stock in accordance with their
respective terms.
Different assumptions would produce materially different results, and these KPIs
may overstate or understate the Company’s bitcoin that would remain attributable
to holders of common stock after accounting for senior claims (net of the
Company’s USD Assets).
BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain are not, and should not be
understood as, financial performance, valuation or liquidity measures.
Specifically:
▪ BPS (in Sats) does not represent (i) the Company's ability to satisfy its
financial obligations, or (ii) the Company’s book value per share.
▪ BTC Yield is not equivalent to “yield” in the traditional financial context.
It is not a measure of the return on investment the Company’s shareholders may
have achieved historically or can achieve in the future by purchasing stock of
the Company. Nor is it a measure of income generated by the Company’s operations
or its bitcoin holdings, return on investment on its bitcoin holdings, or any
other similar financial measure of the performance of its business or assets.
▪ BTC Gain and BTC $ Gain are not equivalent to “gain” in the traditional
financial context. They also are not measures of the return on investment the
Company’s shareholders may have achieved historically or can achieve in the
future by purchasing stock of the Company. Nor are they measures of income
generated by the Company’s operations or its bitcoin holdings, return on
investment on its bitcoin holdings, or any other similar financial measure of
the performance of its business or assets. BTC $ Gain also does not represent a
fair value gain of the Company’s bitcoin holdings nor any other realized or
unrealized financial gain. BTC $ Gain may be positive
during periods when the Company has incurred fair value losses on its bitcoin
holdings, or negative during periods when the Company has incurred fair value
gains on its bitcoin holdings.
The trading price of the Company’s class A common stock is informed by numerous
factors in addition to the Company’s bitcoin holdings and its actual or
potential shares of common stock outstanding. As a result, the trading price of
the Company’s securities can deviate significantly from the fair market value of
the Company’s bitcoin. None of BPS (in Sats), BTC Yield, BTC Gain or BTC $ Gain
is indicative or predictive of the trading price of the Company’s securities.
Investors should rely on the financial statements and other disclosures
contained in the Company’s SEC filings. In particular, the Company has adopted
Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto
Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU
2023-08”). ASU 2023-08 requires the Company to measure its bitcoin at fair value
in its statement of financial position as of the end of a reported period, and
to recognize gains and losses from changes in the fair value in net income
(loss) for the reported period. As a result, the Company may incur unrealized
gain or loss on digital assets based on changes in the market price of bitcoin
during a period, as well as gain or loss from the sale of digital assets during
a period. These gains and losses are not reflected in BPS (in Sats), BTC Yield,
BTC Gain or BTC $ Gain. For example, if the Company increases its bitcoin
holdings relative to Assumed Diluted Shares Outstanding during a reported
period, the Company would achieve increased BPS (in Sats) and positive BTC
Yield, BTC Gain and BTC $ Gain even if the Company reports significant realized
or unrealized loss on digital assets for the period. Similarly, if the Company
increases Assumed Diluted Shares Outstanding at a faster rate than its bitcoin
holdings, then the Company would experience decreased BPS (in Sats) and negative
BTC Yield, BTC Gain, and BTC $ Gain, even if the Company reports significant
unrealized gain on digital assets for the period.
As noted above, these KPIs are narrow in purpose and are used by management to
help assess whether the Company is raising and deploying capital in a manner
accretive to shareholders solely as it pertains to its bitcoin holdings.
References to a transaction, or to the Company’s capital deployment, being
“accretive” or “dilutive” refer only to the effect on the specified KPI under
the stated assumptions. They do not mean that the transaction is accretive or
dilutive to the Company’s earnings, cash flow, book value, enterprise value,
intrinsic value, or the trading price of the Company’s securities.
In calculating BPS (in Sats), BTC Yield, BTC Gain, and BTC $ Gain, the Company
does not consider the source of capital used to acquire its bitcoin. When the
Company purchases bitcoin using proceeds from offerings of non-convertible notes
or non-convertible preferred stock, or convertible notes or preferred stock that
carry conversion prices above the current trading price of the Company's common
stock or conversion rights that are not then exercisable, such transactions have
the effect of increasing the BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain,
while also increasing the Company’s indebtedness and senior claims of holders of
instruments other than class A common stock with respect to dividends and to the
Company’s assets, including its bitcoin, if the Company were to liquidate, in a
manner that is not reflected in these metrics.
If any of the Company’s convertible notes mature or are redeemed without being
converted into common stock, or if the Company elects to redeem or repurchase
its non-convertible instruments (including certain of its perpetual preferred
stock), the Company may be required to sell shares of its class A common stock
or bitcoin to generate sufficient cash proceeds to satisfy those obligations,
either of which would have the effect of decreasing BPS (in Sats), BTC Yield,
BTC Gain and BTC $ Gain. The assumptions used in calculating these metrics do
not contemplate adjustments for such decreases. Accordingly, these metrics might
overstate or understate the accretive nature of the Company’s use of capital to
buy bitcoin because not all bitcoin is purchased using proceeds from issuances
of class A common stock, instruments that are convertible into class A common
stock may be forfeited or repaid with funds other than from the sale of class A
common stock in the period in question rather than being exercised for or
converted into class A common stock and not all proceeds from issuances of class
A common stock are used to purchase bitcoin.
In addition, the Company is required to pay dividends with respect to its
perpetual preferred stock in perpetuity. The Company could pay these dividends
with cash or, in the case of STRK Stock, by issuing shares of class A common
stock. The Company has issued shares of class A common stock and certain series
of its preferred stock for cash to fund the payment of cash dividends. In the
future, the Company may also issue shares of class A common stock in lieu of
paying dividends on STRK Stock. As a result, the Company has experienced, and
may experience in the future, increases in Assumed Diluted Shares Outstanding
without corresponding increases in its bitcoin holdings, resulting in decreases
in BPS (in Sats), BTC Yield, BTC Gain and BTC $ Gain for the applicable periods.
The Company has historically not paid any dividends on its shares of class A
common stock, and by presenting these KPIs the Company makes no suggestion that
it intends to do so in the future. Holders of the Company’s securities,
including its class A common stock and preferred stock, have no ownership
interest in, or redemption right with respect to, the Company's bitcoin
holdings.
The Company determines its KPI targets based on its history and future goals.
The Company’s ability to maintain any given level of BPS (in Sats), or achieve
positive BTC Yield, BTC Gain, or BTC $ Gain may depend on a variety of factors,
including factors outside of its control, such as the price of bitcoin, and the
availability of debt and equity financing on favorable terms. Past performance
is not indicative of future results, and the Company’s KPI results for any
particular interim period may not be indicative of its ability to achieve
longer-term objectives under its bitcoin strategy. Additionally, the Company’s
KPIs may improve, and the Company may achieve its targets or objectives, even as
it incurs losses or the market price of its class A common stock declines.
These KPIs are merely supplements, not substitutes for the financial statements
and other disclosures contained in the Company’s SEC filings. They should be
used only by sophisticated investors who understand their limited purpose and
many limitations. Investors are cautioned not to place undue reliance on the
Company’s KPIs or interpret the Company’s targets as assurances of financial
performance or stockholder returns.
Forward-Looking Statements
This press release may include statements that may constitute “forward-looking
statements,” including estimates of future business prospects, including
statements relating to corporate objectives with respect to the trading price of
the Company’s Variable Rate Series A Perpetual Stretch Preferred Stock,
statements relating to potential future equity repurchases, statements relating
to the Company's expectation regarding the tax-deferred return of capital
treatment of distributions on its preferred stock, and statements containing the
words “believe,” “estimate,” “project,” “expect,” “will,” or similar
expressions. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results of Strategy Inc and its
subsidiaries (the "Company") to differ materially from the forward-looking
statements. Factors that could contribute to such differences include:
fluctuations in the market price of bitcoin and any associated gains or losses
on digital assets that the Company may record in its financial statements as a
result of a change in the market price of bitcoin from the value at which the
Company’s bitcoins are carried on its balance sheet; the availability of debt
and equity financing on favorable terms; gains or losses on any sales of
bitcoins; changes in the accounting treatment relating to the Company’s bitcoin
holdings; changes in securities laws or other laws or regulations, or the
adoption of new laws or regulations, relating to bitcoin that adversely affect
the price of bitcoin or the Company’s ability to transact in or own bitcoin;
changes in the Company’s tax earnings & profits that may impact return of
capital tax treatment on future dividends on the Company’s preferred stock; the
impact of the availability of spot exchange traded products and other investment
vehicles for bitcoin and other digital assets; a decrease in liquidity in the
markets in which bitcoin is traded; security breaches, cyberattacks,
unauthorized access, loss of private keys, fraud or other circumstances or
events that result in the loss of the Company’s bitcoins; impacts to the price
and rate of adoption of bitcoin associated with financial difficulties and
bankruptcies of various participants in the digital asset industry; the level
and terms of the Company’s substantial indebtedness and its ability to service
such debt; the extent and timing of market acceptance of the Company’s new
product offerings; continued acceptance of the Company’s other products in the
marketplace; the Company’s ability to recognize revenue or deferred revenue
through delivery of products or satisfactory performance of services; the timing
of significant orders; delays in or the inability of the Company to develop or
ship new products; customers continuing to shift from a product license model to
a cloud subscription model, which may delay the Company’s ability to recognize
revenue; fluctuations in tax benefits or provisions; changes in the market price
of bitcoin as of period-end and their effect on our deferred tax assets, related
valuation allowance, and tax expense; other potentially adverse tax
consequences; competitive factors; general economic conditions, including levels
of inflation and interest rates; currency fluctuations; and other risks detailed
in the Company’s registration statements and periodic and current reports filed
with the Securities and Exchange Commission (“SEC”). The Company undertakes no
obligation to update these forward-looking statements for revisions or changes
after the date of this release, except as required by law.
STRATEGY INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Nine
Months Months
Ended Ended
Septe… Septe…
30, 30,
2026 2025 2026 2025
Reve… (unau… (unau… (unau… (unau…
──────────────────────────────────────────────────────────────────────────────
Prod… $ 3,829 $ 17,373 $ 12,997 $ 31,8…
lice…
Subs… 68,590 45,972 190,3… 123,…
serv…
Total
prod…
lice… 72,419 63,345 203,3… 155,…
and
subs…
serv…
Prod… 37,681 51,118 122,1… 155,…
supp…
Other 15,327 14,228 46,655 42,7…
serv…
Total 125,4… 128,6… 372,0… 354,…
reve…
Cost
of
reve…
Prod… 1,142 632 3,585 2,765
lice…
Subs… 19,220 19,594 64,434 49,9…
serv…
Total
prod…
lice… 20,362 20,226 68,019 52,6…
and
subs…
serv…
Prod… 5,275 7,157 17,096 21,8…
supp…
Other 10,156 10,630 32,442 33,2…
serv…
Total
cost 35,793 38,013 117,5… 107,…
of
reve…
Gross 89,634 90,678 254,5… 246,…
prof…
Oper…
expe…
Sales
and 32,268 29,908 102,6… 91,1…
mark…
Rese…
and 24,061 22,602 71,825 71,0…
deve…
Gene…
and 35,905 38,173 113,1… 115,…
admi…
(Gai…
loss
on -20,9… -3,89… 1,858… -12,…
digi…
asse…
Total
oper… -20,8… -3,80… 2,146… -11,…
(inc…
expe…
Inco…
(los… 20,90… 3,890… -1,89… 12,0…
from
oper…
Inte… 47,050 121 79,527 313
inco…
Inte… -15,3… -19,0… -47,2… -54,…
expe…
Gain
on — — 113,9… —
debt
exti…
Other
inco… 821 -716 4,151 -12,…
(exp…
net
Inco…
(los…
befo… 20,94… 3,871… -1,74… 11,9…
inco…
taxes
Prov…
for
(ben… 1,409… 1,086… -511,… 3,34…
from)
inco…
taxes
Net
inco… 19,53… 2,785… -1,22… 8,58…
(los…
Divi…
on -419,… -139,… -1,04… -198…
pref…
stock
Deem…
cont…
rela…
to 5,517 — 5,517 —
pref…
stock
repu…
Net
inco…
(los…
attr…
to $ 19,11… $ 2,645… $ -2,27… $ 8,39…
comm…
stoc…
of
Stra…
Basic
earn…
(los…
per $ 47.78 $ 9.30 $ -6.27 $ 30.83
comm…
share
(1)
Weig…
aver…
comm…
shar… 400,1… 284,3… 362,4… 272,…
outs…
-
Basic
Dilu…
earn…
(los…
per $ 44.75 $ 8.42 $ -6.27 $ 27.71
comm…
share
(1)
Weig…
aver…
comm…
shar… 428,0… 315,3… 362,4… 303,…
outs…
-
Dilu…
(1) Basic and fully diluted earnings (loss) per common share for class A and
class B common stock are the same.
STRATEGY INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
-unaudited
Assets
Current assets:
Cash and cash $ 2,501,456 $ 2,301,470
equivalents
Restricted cash 1,671 1,873
Short-term 3,404,457 —
investments
Accounts 129,933 205,748
receivable, net
Prepaid expenses
and other current 70,096 55,046
assets
Total current 6,107,613 2,564,137
assets
Digital assets 70,824,007 58,854,028
Property and 27,223 28,858
equipment, net
Right-of-use assets 60,684 46,975
Deposits and other 126,875 142,577
assets
Deferred tax assets 5,147 4,507
Total assets $ 77,151,549 $ 61,641,082
Liabilities,
Mezzanine Equity
and
Stockholders'
Equity
Current
liabilities:
Current portion of $ 1,045,669 $ 31,313
long-term debt, net
Accounts payable,
accrued expenses,
and 79,298 50,335
operating lease
liabilities
Accrued
compensation and 37,265 69,986
employee
benefits
Accrued interest 5,970 5,619
Preferred dividends 136,447 27,121
payable
Deferred revenue
and advance 206,722 272,118
payments
Total current 1,511,371 456,492
liabilities
Long-term debt, net 5,669,745 8,158,842
Deferred revenue
and advance 2,706 5,451
payments
Operating lease 60,813 46,135
liabilities
Other long-term 5,031 4,736
liabilities
Deferred tax 1,404,407 1,926,454
liabilities
Total liabilities 8,654,073 10,598,110
Commitments and
Contingencies
Mezzanine Equity
Series A Perpetual
Preferred Stock,
$0.001 par value;
411,023 and 442,361
shares authorized;
139,599 and 78,183
shares issued and
outstanding at
September 30, 2026
and December 31,
2025, respectively; 13,056,250 6,919,514
redemption value
and
liquidation
preference of
$14,109,839
and $8,032,324 at
September 30, 2026
and
December 31, 2025,
respectively
Stockholders’
Equity
Preferred stock
undesignated,
$0.001 par
value; 593,977 and
562,639 shares
authorized, no — —
shares issued and
outstanding at
September 30, 2026
and
December 31, 2025,
respectively
Class A common
stock, $0.001 par
value;
10,330,000 and
10,330,000 shares
authorized, 402,338
and 292,422 shares 402 292
issued and
outstanding at
September 30,
2026 and December
31, 2025,
respectively
Class B common
stock, $0.001 par
value;
165,000 shares
authorized, 19,640
shares 20 20
issued and
outstanding at both
September
30, 2026 and
December 31, 2025
Additional paid-in 51,516,192 37,806,554
capital
Accumulated other -14,273 -5,171
comprehensive loss
Retained earnings 3,938,885 6,321,763
Total stockholders’ 55,441,226 44,123,458
equity
Total liabilities,
mezzanine equity
and $ 77,151,549 $ 61,641,082
stockholders'
equity
STRATEGY INC
DIGITAL ASSETS – ADDITIONAL INFORMATION
(unaudited)
Appr…
Digi… Aver…
Asset Digi… Purc…
Orig… Asset Appr… or
Cost Carr… Numb… (Sal…
Basis Value of Price
(in (in Bitc… Per
thou… thou… Held Bitc…
──────────────────────────────────────────────────────────────────────────────
Bal…
at
Jan…
1,
2025 $ 27,9… $ 41,7… 447,4… $ 62,503
(af…
ado…
of
ASU
202…
Dig…
ass… -a 7,66… 7,66… 80,715 94,922
pur…
Loss
on — -5,9… — —
dig…
ass…
Bal…
at
Mar… $ 35,6… $ 43,5… 528,1… $ 67,457
31,
2025
Dig…
ass… -b 6,76… 6,76… 69,140 97,906
pur…
Gain
on — 14,0… — —
dig…
ass…
Bal…
at
June $ 42,3… $ 64,3… 597,3… $ 70,982
30,
2025
Dig…
ass… -c 4,95… 4,95… 42,706 115,9…
pur…
Gain
on — 3,89… — —
dig…
ass…
Bal…
at
Sep… $ 47,3… $ 73,2… 640,0… $ 73,983
30,
2025
Bal…
at
Jan… $ 50,4… $ 58,8… 672,5… $ 74,997
1,
2026
Dig…
ass… -d 7,25… 7,25… 89,599 80,929
pur…
Loss
on — -14,… — —
dig…
ass…
Bal…
at
Mar… $ 57,6… $ 51,6… 762,0… $ 75,694
31,
2026
Dig…
ass… -e 6,42… 6,42… 85,296 75,279
pur…
Dig…
ass… -f -168… -83,… -1,395 -59,6…
sal…
Loss
on — -8,3… — —
dig…
ass…
Bal…
at
June $ 63,9… $ 49,6… 846,0… $ 75,578
30,
2026
Dig…
ass… -g 588,… 588,… 7,218 81,470
pur…
Dig…
ass… -h -582… -348… -5,552 -62,7…
sal…
Gain
on — 20,9… — —
dig…
ass…
Bal…
at
Sep… $ 63,9… $ 70,8… 847,6… $ 75,437
30,
2026
(a) In the first quarter of 2025, we purchased bitcoin using $4.37 billion of
the net proceeds from ATM sales of class A common stock, $1.99 billion of the
net proceeds from our issuance of the 2030B Convertible Notes, $593.7 million of
the aggregate net proceeds from the initial public offering and ATM sales of
STRK Stock, and $710.0 million of the net proceeds from the initial public
offering of STRF Stock.
(b) In the second quarter of 2025, we purchased bitcoin using $5.19 billion of
the net proceeds from ATM sales of class A common stock, $979.7 million of the
net proceeds from our initial public offering of STRD Stock, $163.0 million of
the net proceeds from ATM sales of STRF Stock, and $438.0 million of the net
proceeds from ATM sales of STRK Stock.
(c) In the third quarter of 2025, we purchased bitcoin using $209.5 million of
the net proceeds from ATM issuances of STRF Stock, $153.1 million of the net
proceeds from ATM issuances of STRK Stock, $48.5 million of the net proceeds
from ATM issuances of STRD Stock, $2.07 billion of the net proceeds from ATM
issuances of class A common stock, and $2.47 billion of the net proceeds from
the initial public offering of STRC Stock.
(d) In the first quarter of 2026, we purchased bitcoin using $2.06 billion of
the net proceeds from ATM sales of STRC Stock, $3.3 million of the net proceeds
from ATM sales of STRK Stock and $5.19 billion of the net proceeds from ATM
sales of class A common stock.
(e) In the second quarter of 2026, we purchased bitcoin using $5.46 billion of
the net proceeds from ATM sales of STRC Stock, and $0.96 billion of the net
proceeds from ATM sales of class A common stock.
(f) The proceeds from these sales were used to fund dividend payments on
Preferred Stock.
(g) In the third quarter of 2026, we purchased bitcoin using $588.1 million of
the net proceeds from ATM sales of class A common stock.
(h) The proceeds from these sales were used to fund $239.9 million of dividend
payments on Preferred Stock and to repurchase $108.6 million of STRC Stock.