olivLaw · US equity research
Strategy Inc MSTR
Finance Services · SIC 6199 · Vertical: Finance Services (SIC 6199)
Strategy Inc is the world's first Bitcoin treasury company and the largest institutional holder of bitcoin, financing its purchases through fixed-dividend 'digital credit' instruments. It also runs an AI-powered enterprise analytics software business with stable but small revenue relative to its bitcoin activity. Because it held over 846,000 bitcoin at June 30, 2026, its results now depend heavily on the bitcoin price and its ability to pay dividends.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Strategy Inc (MSTR) stock was 142.54 USD (+5.09% on the day), with beta 2.55, 52-week range 82.31–255.00 USD. Latest reported quarter (Q3 2026): revenue of 125.4 m USD (−2.5% YoY), net income of 19.5 bn USD (+601.4% YoY), diluted EPS 44.75 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 49.7
- neutral
- Bollinger (20, 2)
- 129.31 – 158.04
- in the lower half of the band · %B 0.46 · band width 20.0%
- SMA 50 / 200
- 144.47 / 134.08
- mixed trend
- MACD (12, 26, 9)
- -2.45 / -1.17
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.3% | −1.1% | −12.2 pp | — |
| 3 months | +44.9% | −0.5% | +45.4 pp | — |
| 6 months | −23.7% | +4.4% | −28.1 pp | — |
| Year to date | −6.2% | +12.3% | −18.5 pp | — |
| 1 year | −42.3% | +13.5% | −55.8 pp | −48.5% |
| 3 years | +214.0% | +76.4% | +137.6 pp | −74.7% |
| 5 years | +78.7% | +63.7% | +15.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 120.7 m | 111.1 m | 114.5 m | 128.7 m | 123.0 m | 124.3 m | 122.4 m | 125.4 m |
| Cost of revenue | 34.2 m | 34.0 m | 35.8 m | 38.0 m | 41.7 m | 40.9 m | 40.8 m | 35.8 m |
| Gross profit | 86.5 m | 77.1 m | 78.7 m | 90.7 m | 81.3 m | 83.4 m | 81.6 m | 89.6 m |
| Research & development | 25.7 m | 24.4 m | 24.1 m | 22.6 m | 22.8 m | 24.7 m | 23.1 m | 24.1 m |
| Operating income | -1.0 bn | -5.9 bn | 14.0 bn | 3.9 bn | -17.4 bn | -14.5 bn | -8.3 bn | 20.9 bn |
| Depreciation & amortisation | 5.1 m | 6.6 m | 9.1 m ≈ | 4.2 m ≈ | 5.6 m | 8.8 m | 12.4 m ≈ | 11.2 m ≈ |
| Interest expense | — | — | 18.0 m | 19.0 m | — | — | 15.6 m | 15.4 m |
| Pre-tax income | -1.0 bn | -5.9 bn | 14.0 bn | 3.9 bn | -17.5 bn | -14.5 bn | -8.2 bn | 20.9 bn |
| Income tax | -355.9 m | -1.7 bn | 4.0 bn | 1.1 bn | -5.0 bn | -1.9 bn | 1.6 m | 1.4 bn |
| Net income | -670.8 m | -4.2 bn | 10.0 bn | 2.8 bn | -12.4 bn | -12.5 bn | -8.2 bn | 19.5 bn |
| Diluted EPS | -3.02 ≈ | -16.49 | 32.60 | 8.42 | -62.33 ≈ | -38.25 | -24.45 | 44.75 |
| Operating cash flow | -17.3 m | -2.4 m | -34.9 m ≈ | -8.3 m ≈ | -21.6 m | 14.0 m | -4.1 m ≈ | 4.4 m ≈ |
| Capex | 284.0 k | 2.7 m | 2.1 m ≈ | 2.8 m ≈ | 584.0 k | 952.0 k | 1.8 m ≈ | 462.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 497.6 m | 486.3 m | 480.7 m | 510.8 m | 499.3 m | 496.3 m | 463.5 m | 477.2 m |
| Revenue YoY | −1.2% | −2.3% | −1.1% | +6.2% | −2.3% | −0.6% | −6.6% | +3.0% |
| Net income | 22.5 m | 34.4 m | -7.5 m | -535.5 m | -1.5 bn | 429.1 m | -1.2 bn | -3.8 bn |
| Net income YoY | +23.7% | +52.7% | −121.9% | unavailable | unavailable | unavailable | −371.9% | unavailable |
| Diluted EPS | 1.97 | 3.33 | -0.78 | -53.44 | -12.98 | 2.64 | -6.06 | -15.23 |
| Diluted EPS YoY | +24.7% | +69.0% | −123.4% | unavailable | unavailable | unavailable | −329.5% | unavailable |
| net % | 4.5% | 7.1% | -1.6% | -104.8% | -294.4% | 86.5% | -251.7% | -806.3% |
| Free cash flow | 3.8 m | 50.7 m | 50.0 m | 91.1 m | 725.0 k | 9.8 m | -56.0 m | -75.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.3 bn USD
- Financial debt
- 8.2 bn USD
- Net debt
- 5.9 bn USD
- Equity
- 44.1 bn USD
- Total assets
- 61.6 bn USD
- Debt / equity
- 0.19x
- Current ratio
- 5.62x
- ROE
- -10.2%
- ROA
- -8.8%
- FCF margin
- -15.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 480.7 m | 510.8 m | 499.3 m | 496.3 m | 463.5 m | 477.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 91.1 m | 91.9 m | 103.0 m | 109.9 m | 129.5 m | 149.4 m | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 389.7 m | 418.9 m | 396.3 m | 386.3 m | 334.0 m | 327.8 m | SEC (XBRL)· 19 Feb 2026verified |
| Research & development | 103.6 m | 117.1 m | 127.4 m | 120.5 m | 118.5 m | 93.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Operating income | -13.6 m | -784.5 m | -1.3 bn | -115.0 m | -1.9 bn | -5.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 13.3 m | 11.4 m | 10.9 m | 14.5 m | 17.8 m | 25.5 m | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | -293.0 k ≈ | -773.2 m ≈ | -1.3 bn ≈ | -100.5 m ≈ | -1.8 bn ≈ | -5.4 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Pre-tax income | -20.0 m | -811.4 m | -1.3 bn | -124.5 m | -1.9 bn | -5.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | -12.4 m | -275.9 m | 147.3 m | -553.6 m | -767.7 m | -1.7 bn | SEC (XBRL)· 19 Feb 2026verified |
| Net income | -7.5 m | -535.5 m | -1.5 bn | 429.1 m | -1.2 bn | -3.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | -0.78 | -53.44 | -12.98 | 2.64 | -6.06 | -15.23 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 9.7 m | 10.0 m | 113.2 m | 165.7 m | 192.5 m | 277.7 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 59.7 m | 63.4 m | 43.8 m | 46.8 m | 38.1 m | 2.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 197.5 m | 189.3 m | 189.3 m | 183.8 m | 181.2 m | 205.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 272.6 m | 268.0 m | 264.6 m | 267.9 m | 252.3 m | 2.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 43.0 m | 36.6 m | 32.3 m | 28.9 m | 26.3 m | 28.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 1.5 bn | 3.6 bn | 2.4 bn | 4.8 bn | 25.8 bn | 61.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | — | 0 | 454.0 k | 483.0 k | 517.0 k | 31.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Long-term debt | 486.4 m | 2.2 bn | 2.4 bn | 2.2 bn | 7.2 bn | 8.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 285.6 m | 312.0 m | 317.4 m | 323.3 m | 355.4 m | 456.5 m | SEC (XBRL)· 19 Feb 2026verified |
| Total liabilities | 912.6 m | 2.6 bn | 2.8 bn | 2.6 bn | 7.6 bn | 10.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 446.2 m † | 979.0 m † | -383.1 m † | 2.2 bn † | 31.0 bn † | 44.1 bn † | SEC (XBRL)· 19 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 53.6 m | 93.8 m | 3.2 m | 12.7 m | -53.0 m | -67.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 3.7 m | 2.7 m | 2.5 m | 2.9 m | 3.0 m | 8.2 m | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 50.0 m ≈ | 91.1 m ≈ | 725.0 k ≈ | 9.8 m ≈ | -56.0 m ≈ | -75.5 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -1.0 bn | -2.6 bn | -278.6 m | -1.9 bn | -22.1 bn | -22.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | 563.2 m | 2.5 bn | 265.2 m | 1.9 bn | 22.1 bn | 24.8 bn | SEC (XBRL)· 19 Feb 2026verified |
| Share repurchases | 123.2 m | 0 | 0 | — | — | — | SEC (XBRL)· 16 Feb 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 29.2% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
29% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · input data missing
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 29.2% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -27.0% | 44 (vs peers) | 36% |
| Net margin · Quality | -2,760.3% | 8 (vs peers) | 21% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -1.5% | 0 (on a fixed band) | 29% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 4.0x | 100 (on a fixed band) | 14% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality31/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
STRATEGY INC (MSTR). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 477.2 m USD in 2025; YoY growth 3.0%; net margin -2,760.3%; ROE -25.4%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 29.2% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 4.0x
What contradicts it
- Net margin: -2,760.3%
- Revenue CAGR 3Y: -1.5%
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Finance Services (SIC 6199) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AXPAmerican Express Co | 223.0 bn | 18.7 | 35.9% | 27.9% | +6.4% | −9% / +95% |
| COINCoinbase Global, Inc. | 40.1 bn | — | -4.7% | -12.5% | +9.4% | −44% / +21% |
| SOFISoFi Technologies, Inc. | 22.4 bn | 36.3 | 7.1% | 104.3% | +23.1% | −42% / +138% |
| IRENIREN Limited | 7.8 bn | — | -23.4% | -99.4% | +41.1% | −55% / +340% |
| HUTHut 8 Corp. | 5.9 bn | — | -34.5% | -169.8% | +44.8% | +9% / +415% |
| BLSHBullish | 3.5 bn | — | -27.3% | -0.3% | −2.2% | −47% / unavailable |
| PURRHyperliquid Strategies Inc | 1.9 bn | 3.0 | 32.6% | 3,229.8% | unavailable | unavailable / unavailable |
| CLSKCleanSpark, Inc. | 1.7 bn | — | -68.6% | -130.2% | +102.2% | −55% / +9% |
| WLTHWealthfront Corporation | 1.7 bn | — | -20.5% | -19.4% | +18.2% | unavailable / unavailable |
| BTDRBitdeer Technologies Group | 1.5 bn | — | -196.7% | -171.3% | −5.1% | −51% / +45% |
| RHLDResolute Holdings Management, Inc. | 1.0 bn | 24.1 | — | 4.2% | +9.9% | −26% / unavailable |
| AMBRAmber International Holding Limited | 865.0 m | — | -116.1% | -88.7% | −9.0% | −27% / −51% |
| CDChaince Digital Holdings Inc. | 741.4 m | — | -12.3% | -182.5% | +277.9% | −30% / +622% |
| TRONTron Inc. | 664.1 m | 96.8 | 3.8% | 135.6% | +10.0% | −24% / −48% |
| JFU9F Inc. | 536.7 m | 23.2 | 4.7% | 125.2% | +12.2% | −52% / −43% |
| ABTCAmerican Bitcoin Corp. | 516.7 m | 7.5 | -10.5% | -26.7% | +158.8% | −90% / −99% |
| ORBSEightco Holdings Inc. | 340.9 m | — | -157.0% | -1,260.9% | −16.8% | −70% / −74% |
| CHADDefi Development Corp. | 310.0 m | — | -589.3% | -1,319.5% | +442.3% | unavailable / unavailable |
| CPSSConsumer Portfolio Services, Inc. | 221.6 m | 9.9 | 7.5% | 5.0% | +10.4% | +23% / +7% |
| DGXXDigi Power X Inc. | 217.0 m | — | -24.7% | -114.8% | −7.6% | −48% / +50% |
| TONXTon Strategy Company | 159.7 m | — | -75.5% | -532.8% | +1,327.8% | −15% / −93% |
| DEFTDefi Technologies Inc. | 152.4 m | 2.3 | 74.0% | 62.9% | +215.5% | −74% / unavailable |
| HSDTSolana Company | 127.0 m | — | -183.2% | -1,302.8% | +1,057.1% | −49% / −100% |
| AGPUAxe Compute Inc | 86.2 m | — | -1,565.2% | -7,769.8% | +47.7% | +24% / −85% |
| MGLDThe Marygold Companies, Inc. | 84.1 m | — | -20.7% | -17.3% | +8.0% | +93% / +91% |
1- and 3-year price returns: for MSTR from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 10-Q (02 Nov 2026), 8-K (29 Oct 2026 · results).
In brief
Strategy Inc is the world's first Bitcoin treasury company and the largest institutional holder of bitcoin, financing its purchases through fixed-dividend 'digital credit' instruments. It also runs an AI-powered enterprise analytics software business with stable but small revenue relative to its bitcoin activity. Because it held over 846,000 bitcoin at June 30, 2026, its results now depend heavily on the bitcoin price and its ability to pay dividends.
SWOT
Strengths
- The company holds a leading position among institutional bitcoin holders and, per the source, a dollar reserve covering several years of dividends and interest. Dividend payments have been made without interruption for 18 months, according to the quarterly release.
- The financing structure is diversified, combining common stock, five classes of preferred stock and convertible notes, giving access to several investor categories.
- The software division has recurring revenue and high gross margins, which could support part of the business over time if it grows.
Weaknesses
- The software business does not currently generate enough cash flow to cover the company's obligations, so dependence on external financing is high.
- Accounting results are very sensitive to the bitcoin price, because unrealized losses flow directly into the net loss.
- Dividend and interest obligations are largely fixed in the short term, which limits how quickly expenses can be adjusted in weak markets.
Opportunities
- If 'digital credit' instruments become stable and liquid, the company could widen its investor base and reduce financing costs.
- The program repurchasing STRC shares below their stated amount could reduce future dividend obligations if the instrument stays below the 100-dollar threshold.
- Growing demand for AI analytics in enterprises could support software revenue, especially if the platform expands its conversational features.
Threats
- A prolonged fall in the bitcoin price could force sales below acquisition cost, hurting results and financing capacity.
- If demand for preferred stock falls, financing costs could rise and the company could be forced to reduce holdings to pay dividends.
- Custody and regulatory risks for bitcoin, including a possible change in tax treatment, could weigh on the company.
Risks
- Liquidity for dividends and interesthigh
If the dollar reserve runs down and financing cannot be raised in time or on favourable terms, the company could be forced to sell bitcoin at unfavourable prices.
- Bitcoin price volatilityhigh
Digital assets are measured at market value, so falls in the bitcoin price produce large accounting losses and can reduce the value of holdings.
- Tax exposuremedium
The company could face unexpected tax liabilities, and selling bitcoin at a gain would create tax. Changes in international tax rules add uncertainty.
- Custody riskmedium
The company relies on three custodians to safekeep bitcoin. A problem at one of them could affect a significant part of holdings, although the contracts include certain liability terms.
- Volatile results and uncertain profitabilitymedium
Results can swing sharply from quarter to quarter, and the company cannot be sure it will regain profitability if unrealized losses persist.
Investment thesis
What would need to be true (bull case)
- If bitcoin recovers and 'digital credit' instruments stay near par, the company could benefit from stronger demand for financing and from rising value of holdings per share.
- The dollar reserve and repurchase programs could ease dividend pressure and let the company use financing more efficiently.
- The software division, with high gross margins, could grow and provide a more predictable revenue component.
What would break the thesis
- If the bitcoin price stays below average acquisition cost, accounting losses would continue and the company could sell bitcoin to meet its obligations.
- If demand for STRC shares falls, the dividend could need to rise further, increasing the cost of financing.
- The software division does not cover obligations on its own, and the company depends on external financing to pay dividends and interest.
What to watch
- Evolution of the USD Reserve and STRC dividend paymentsQ3 2026
- Volume of bitcoin sales under the monetization programQ3 2026
- Effect of repurchase programs on the STRC priceQ3 2026
- Next annual report on interest rates and convertible debt maturitiesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 10-Q (02 Nov 2026), 8-K (29 Oct 2026 · results).
The business
Strategy Inc (formerly MicroStrategy, renamed in August 2025) defines its activity in two directions. The first is its bitcoin treasury strategy, under which it accumulates bitcoin as a reserve asset and issues five classes of preferred stock called 'digital credit' to finance its purchases. The second is its AI analytics platform, which includes Strategy One and Strategy Mosaic and is sold to enterprises across many industries. According to the July 30, 2026 quarterly report, the company realigned its reporting into two segments, Software and Bitcoin, starting in the second quarter of fiscal 2026 23.
To support dividends and interest, the company set up a US dollar reserve (USD Reserve) in December 2025, which stood at 3.75 billion dollars on July 26, 2026 3. Management stated that the software business did not generate positive operating cash flow in fiscal 2025 and does not expect it to cover obligations over the next twelve months 1. For this reason financing depends mainly on ATM equity sales and preferred stock issuance.
Custody of the bitcoin is split among three U.S.-based custodians, Coinbase, Anchorage Digital and Fidelity Digital Assets, holding roughly 40%, 37% and 23% respectively as of February 13, 2026 1. The company describes its treasury policy as long-term, with no fixed target quantity of bitcoin.
Segments
Software segment (AI enterprise analytics)
The Software segment offers the cloud-native Strategy One platform and the Strategy Mosaic universal data layer, with generative and conversational AI capabilities. In the second quarter of 2026, total revenues were 122.4 million dollars, up 6.9% from a year earlier, with a gross margin of 66.6% 3. Revenues are small relative to bitcoin holdings, but the segment remains a declared component of the long-term strategy.
Bitcoin segment (treasury and financing)
The Bitcoin segment covers bitcoin holdings, purchases, partial sales and preferred stock issuance. At June 30, 2026 the company held 846,000 bitcoin, and in the second quarter the operating loss was 8.33 billion dollars, which includes an unrealized loss on digital assets of 8.32 billion 23. The company has also begun repurchasing STRC shares below their stated amount, showing management now uses capital instruments in the reverse direction too.
Market context
The preferred stock financing market is equally decisive. STRC issuances raised 7.53 billion dollars in 2026 through July 26, and the STRC dividend was raised to 12% to keep the instrument near 100 dollars 3. If investor demand for these instruments falls, the company could need more bitcoin sales to meet its obligations.
Trends
- Bitcoin price volatilityheadwind
Unrealized bitcoin losses have had a major effect on quarterly results, reaching 8.32 billion dollars in the second quarter of 2026 3. If the bitcoin price stays below average acquisition cost, accounting results could remain volatile.
- Growing bitcoin holdingstailwind
Holdings rose from 672,500 bitcoin at the end of 2025 to 846,000 at June 30, 2026, through purchases funded by ATM issuance 12. If these issuances continue, holdings per share could grow even during periods of low prices.
- Preferred dividend pressureheadwind
Preferred dividend obligations have grown with STRC issuance and could become hard to cover without new issuance or bitcoin sales. The company set up a dollar reserve to limit this risk, but it must be replenished periodically 3.
- The 'digital credit' capital frameworkmixed
In June 2026 the board approved a framework covering the USD Reserve policy, STRC dividend policy, repurchase programs and a bitcoin monetization program. If these tools stabilise preferred stock prices, financing could become more predictable, but they could also limit the company's flexibility 23.
Competitive position
In the analytics segment the company faces providers of enterprise business intelligence and data platforms. The sources provided do not explicitly name competitors, so the list below reflects general categories only. In bitcoin, the company describes itself as the largest institutional holder, but the sources provided contain no comparison with other corporate holders.
- Enterprise business intelligence platform providers
Sources do not name competitors; the category covers visualization, reporting and embedded analytics platforms serving the same corporate customers as Strategy One.
- Unified data layer and governance providers
Category covering universal data layer solutions similar to Strategy Mosaic, used to create a single source of truth.
- Other institutional bitcoin holders
Companies and funds holding bitcoin in treasury; the sources do not identify them, and the company describes itself as the largest institutional holder.
- Bitcoin custody service providers
The company works with three custodians, but they are service partners rather than direct competitors; the custody relationship is treated as a counterparty risk.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- MicroStrategy Ends Two-Week Pause With 950 Bitcoin: Is the Buying Engine Stalling?Yahoo Finance — News · 21 Sept 2026 · EN
- MicroStrategy's Bitcoin Guide Issues a 93% Crash Warning to InvestorsYahoo Finance — News · 13 Sept 2026 · EN
- MicroStrategy Says It Has the One Thing JPMorgan LacksYahoo Finance — News · 09 Sept 2026 · EN
- MicroStrategy Drops $250 Bitcoin Jordans. But You Can’t Buy With CryptoYahoo Finance — News · 05 Sept 2026 · EN
- Coinbase, Circle, MicroStrategy stocks surge on crypto reboundYahoo Finance — News · 03 Sept 2026 · EN
- MicroStrategy Reserve Capital Beats All S&P 500 Financials But Berkshire, MSTR Still SlipsYahoo Finance — News · 02 Sept 2026 · EN
- MicroStrategy finally buys Bitcoin after 2 monthsYahoo Finance — News · 31 Aug 2026 · EN
- MicroStrategy Ends 10-Week Pause With $370 Million Bitcoin BuyYahoo Finance — News · 31 Aug 2026 · EN
- Michael Saylor Says ‘We're Back': 3 Reasons MicroStrategy May Resume Buying BitcoinYahoo Finance — News · 30 Aug 2026 · EN
- A Major Bitcoin Short Squeeze Is Taking MicroStrategy Stock Higher. What Comes Next.Yahoo Finance — News · 25 Aug 2026 · EN
- MicroStrategy Bought $3.28 Billion of US Dollars in August, Not BitcoinYahoo Finance — News · 24 Aug 2026 · EN
- Donald Trump Sold MicroStrategy and Bought Two Other Crypto StocksYahoo Finance — News · 23 Aug 2026 · EN
The latest news item in our archive is from 21 Sept 2026; the newest SEC filing is from 02 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report02 Nov 2026
- Current report02 Nov 2026Regulation FD disclosure · Other events
- Current report29 Oct 2026Item 3.03 · Amendments to articles or bylaws · Shareholder vote · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report29 Oct 2026Results of operations · Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report28 Oct 2026Other events
- Current report26 Oct 2026Regulation FD disclosure · Other events
- Current report19 Oct 2026Regulation FD disclosure · Other events
- Current report16 Oct 2026Regulation FD disclosure · Other events
- Current report13 Oct 2026Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report05 Oct 2026Regulation FD disclosure · Other events
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Strategy Inc · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Strategy Inc · 03 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Strategy Inc · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.