STRATEGY INC · NASDAQ: MSTR
Strategy Inc (MSTR) Stock Research
Explore Strategy's bitcoin holdings, Q2 2026 earnings, debt, preferred dividends and dilution risks, with dated filings and bitcoin acquisition costs.
- Latest financial period
- Q2 2026
- Quarterly filing
- Aug 3, 2026
- Research updated
- Sep 27, 2026
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Reported evidence
Latest MSTR financial snapshot
Q2 2026 · filed Aug 3, 202602
Latest filing analysis
What changed in the latest reported period
Strategy's Q2 2026 software revenue reached $122.368 million, up 6.9% year over year, with a 66.6% gross margin.
Subscription services revenue increased to $62.858 million, approximately 51.4% of revenue, while product support declined to $40.245 million as the software business shifted toward subscriptions.
Unrealized digital-asset losses of $8.315365 billion drove a GAAP operating loss of $8.330950 billion.
GAAP net loss was $8.219628 billion. After $400.661 million of preferred dividends, loss attributable to common shareholders was $8.620289 billion and diluted EPS was negative $24.45.
June 30 cash and cash equivalents were $1.711837 billion, with $736.145 million of short-term investments. These quarter-end balances have a different date from the September liquidity update below.
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BasisPilot
What matters for MSTR now
Bitcoin exposure per share
More bitcoin does not necessarily mean more value per common share. Common issuance and convertible securities change the share count, while debt and preferred securities have claims ahead of common equity.
Evidence checkpointAccounting earnings versus cash
Q2 included $8.315 billion of unrealized digital-asset losses, while first-half operating cash inflow was $9.850 million. Fair-value earnings and cash available for dividends and interest measure different things.
Evidence checkpointFinancing terms and dilution
First-half common and preferred issuance generated $8.245 billion and $7.535 billion respectively, before issuance fees. Issue prices, share counts and preferred terms jointly affect common-equity value.
Evidence checkpointLiquidity and preferred claims
Q2 preferred dividends were $400.661 million. The September update distinguishes a designated USD Reserve from general-purpose USD Cash; not all liquidity is intended for bitcoin purchases.
Evidence checkpointSoftware subscription transition
Q2 subscription revenue reached $62.858 million as support and license revenues declined. Software gross margins and cash contribution help assess the operating business behind the treasury strategy.
Evidence checkpoint04
Revenue mix
How Strategy Inc makes money
Software revenue comes from subscriptions, product support, licenses and services. Bitcoin purchases are asset acquisitions; unrealized bitcoin gains and losses enter operating expenses rather than software revenue. The revenue categories below are not separate bitcoin and software operating segments.
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Bitcoin and liquidity
Strategy bitcoin holdings and cost
As of September 20, 2026 · filed September 21Average acquisition cost includes expenses and is not a live bitcoin quote, stock price or institutional cost basis. During September 14–20, Strategy repurchased 1.771 million STRC preferred shares for $174 million; it did not repurchase MSTR common shares that week. Source: holdings and liquidity 8-K
06
Capital structure
Financing, preferred claims and dilution
First half of 2026, before issuance fees
First half of 2026, before issuance fees
First half of 2026; distinct from financing inflows
Q2 2026; deducted from net income to determine common earnings
At June 30, convertible debt principal was approximately $6.71 billion and preferred liquidation preferences were $15.462 billion. Preferred liquidation preferences are not ordinary debt carrying values, but rank ahead of common equity. First-half bitcoin purchases used $13.672 billion, illustrating the importance of financing rather than software operating cash flow to asset expansion. Source: Q2 10-Q
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Historical filings
MSTR earnings history
| Period | Revenue | YoY | EPS | Source filed |
|---|---|---|---|---|
| Q2 2026 | $122.4M | 6.9% | -24.45 | Aug 3, 2026 |
| Q2 2025 | $114.5M | — | 32.6 | Aug 3, 2026 |
Both periods are from the Q2 2026 10-Q. The 2025 row is the comparative quarter, not a new 2025 filing. EPS is attributable to common shareholders and reflects bitcoin fair-value movements and preferred dividends.
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Valuation context
MSTR valuation
MSTR represents a residual claim on Strategy, rather than direct ownership of its bitcoin. An asset-based valuation starts with bitcoin at a specified market price, adds cash and other assets, accounts for debt and preferred claims, and considers software value and taxes. Divide the resulting common-equity value by a consistently defined diluted share count. A premium can contract even when bitcoin rises; no live premium or price target is implied by these dated figures.
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SEC 13F
Institutional ownership
No matching position is available in BasisPilot's current 13F manager coverage.
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BasisPilot Insights
Related crypto and ownership research
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Decision support
Risks and next checkpoints
Lower bitcoin prices can weaken both asset value and reported earnings; contraction of MSTR's premium can amplify stock-price declines.
Common-share and convertible-security financing changes per-share exposure. Growth in total bitcoin does not guarantee proportional growth in common-shareholder value.
Debt and preferred claims rank ahead of common equity. Dividends, interest, maturities and redemption requirements can consume cash or lead to asset sales.
Weaker capital-market demand or higher financing costs can constrain bitcoin purchases, refinancing and liquidity replenishment.
Custody providers, private-key management, cyberattacks and bitcoin-market liquidity create risks to asset security and monetization.
Digital-asset regulation, tax treatment and deferred taxes can increase financial volatility. The software business also faces subscription-migration and competitive risks.
12
FAQ
MSTR investor questions
How much bitcoin does Strategy hold?
Strategy reported 846,000 BTC as of September 20, 2026 in its September 21 Form 8-K. This is a dated company disclosure, not a live balance. The company bought 950 BTC during September 14–20.
What is Strategy's average bitcoin purchase price?
The September 21 filing reported an average acquisition price of $75,416 per BTC and an aggregate purchase price of approximately $63.80 billion, including fees and expenses. These are Strategy's bitcoin acquisition costs, not the price institutions paid for MSTR shares.
Why did Strategy report a large Q2 2026 loss?
The quarter included $8.315 billion of unrealized digital-asset losses. GAAP net loss was $8.220 billion; after $400.661 million of preferred dividends, loss attributable to common shareholders was $8.620 billion and diluted EPS was negative $24.45.
Is MSTR equivalent to a spot bitcoin ETF?
No. MSTR is common stock in a company with software operations, debt, preferred securities and financing decisions. Its return depends on bitcoin prices, dilution and the premium or discount investors assign to the company, as well as claims ranking ahead of common shareholders.
Is BTC Yield a dividend or investment return?
No. Strategy defines BTC Yield as the percentage change in bitcoin per assumed diluted share over a period. It is not a cash dividend, a bitcoin yield or an MSTR shareholder return, and it does not by itself deduct all senior claims.
How does Strategy finance its bitcoin strategy?
Strategy uses capital markets, including common-share offerings, preferred securities and convertible debt. In the first half of 2026, net financing cash inflow was $13.770 billion, while operating cash inflow was $9.850 million. Share issuance and preferred dividends affect common shareholders differently.
Will MSTR pay daily dividends under the September proposal?
The September 25 proposal concerns STRF, STRC, STRK and STRD preferred shares, not MSTR common stock. It requires shareholder approval and effective amendments, and changes payment frequency without changing total regular dividend obligations.
Do MSTR 13F filings reveal institutions' bitcoin holdings?
No. Form 13F reports securities positions, not direct bitcoin ownership or real-time trades. BasisPilot's current tracked-manager dataset has no matching MSTR position; that does not mean institutions hold no MSTR. A filing's market value is not an institution's acquisition cost.
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Provenance
Sources and methodology
Primary SEC filings and issuer releases take precedence. Financial, market, ownership and page-update dates are shown separately, while historical values retain their original reporting period.