Strategy

Updated 2026-10-16

Summary

Strategy Inc (named MicroStrategy until 2025-08-11; Nasdaq: MSTR) calls itself the world's first and largest Bitcoin Treasury Company and also sells analytics software. It held 848,250 BTC on 2026-10-11, bought for $64.00 billion in total, or $75,444 per coin including fees. It funds purchases mainly by selling class A shares and preferred stock (STRF, STRC, STRK, STRD and the euro-denominated STRE) through at-the-market programs; STRC, for example, is perpetual, with no scheduled maturity. At 2026-06-30 it also owed $6.71 billion of convertible notes, and its preferred stock carried a $15.46 billion liquidation preference; Strategy describes MSTR common as junior to all debt and preferred stock. The MSTR share itself is a separate node, asset:stock-mstr.

Key numbers

Bitcoin held: 848,250 BTC (as of 2026-10-11). Source: sec.gov

Aggregate cost / average cost per BTC (incl. fees): $64.00 billion / $75,444 (as of 2026-10-11). Source: sec.gov

Digital asset carrying value (management estimate, unaudited): $70.82 billion (as of 2026-09-30). Source: sec.gov

Common shares outstanding (class A / class B): 364,585,501 / 19,640,250 (as of 2026-07-24). Source: sec.gov

Convertible notes, total long-term debt carried (six series, 2028-2032, 0%-2.25%): $6.71 billion (as of 2026-06-30). Source: sec.gov

Preferred stock aggregate liquidation preference (STRF, STRC, STRE, STRK, STRD): $15.46 billion (as of 2026-06-30). Source: sec.gov

Preferred dividends declared, Q2 2026: $507.7 million (as of 2026-06-30). Source: sec.gov

STRC dividend rate (annual): 12.00% (as of 2026-10-15). Source: sec.gov

USD Reserve (for preferred dividends and interest): $4.88 billion (as of 2026-10-11). Source: sec.gov

Remaining ATM capacity: MSTR / STRC: $18,807.6 million / $17,510.8 million (as of 2026-10-11). Source: sec.gov

Bitcoin sold, 2026-06-29 to 2026-08-02 (AA sum of 8-Ks of 2026-07-06 and 2026-08-03: 1,363 + 2,225 + 1,638; floor for that period, not a full-year total): 5,226 BTC (as of 2026-08-02). Source: sec.gov

Timeline

2026-10-15 — Declares daily November STRC dividends at 12.00%, conditional on the 2026-10-28 vote. (Source: sec.gov)

2026-10-12 — Reports 250 BTC bought and $192.4 million of STRC repurchased; holds 848,250 BTC. (Source: sec.gov)

2026-10-08 — Sets Q3 2026 results for 2026-10-29. (Source: strategy.com)

2026-10-05 — Estimates a $20.91 billion Q3 digital-asset gain (unaudited). (Source: sec.gov)

2026-09-30 — Keeps STRC at 12.00%; calls a 2026-10-28 special meeting. (Source: sec.gov)

2026-09-28 — Buys 1,665 BTC with MSTR sale proceeds; USD Reserve $5.02 billion. (Source: sec.gov)

2026-09-08 — Raises its preferred repurchase program to $2.0 billion. (Source: strategy.com)

2026-08-31 — Declares Q3 dividends on STRF, STRE, STRK, STRD and STRC. (Source: sec.gov)

2026-08-03 — Discloses selling 1,638 BTC to fund dividends and STRC buybacks. (Source: sec.gov)

2026-07-30 — Reports an $8.22 billion Q2 2026 net loss. (Source: sec.gov)

2026-07-27 — Starts STRC buybacks below $100; USD Reserve $3.75 billion. (Source: strategy.com)

2026-07-06 — Discloses selling 3,588 BTC since 2026-06-29 to fund preferred distributions. (Source: sec.gov)

2026-06-29 — Adopts its Digital Credit Capital Framework and BTC Monetization Program. (Source: sec.gov)

2026-04-06 — Estimates a $14.46 billion unrealized Q1 2026 digital-asset loss. (Source: sec.gov)

2025-12-01 — Establishes a $1.44 billion USD Reserve. (Source: sec.gov)

2025-08-11 — MicroStrategy Incorporated becomes Strategy Inc. (Source: sec.gov)

Key actors and links

Strategy (asset:stock-mstr): The class A share this company issues; its ATM sales fund most bitcoin buying and STRC buybacks.

BTC (asset:crypto-btc): Main asset: 848,250 BTC at $75,444 average cost; at least 5,226 BTC sold 2026-06-29 to 2026-08-02 (AA sum).

Bitcoin network (actor:bitcoin-network): Holds the network's asset; does not operate the network.

BTC monetary premium / store of value (theme:btc-monetary-premium): A leveraged bet on bitcoin's store-of-value thesis, financed by preferred stock and converts.

BTC-linked bucket (theme:btc-linked-bucket): Reported results swing with bitcoin, as Q1 and Q2 2026 losses showed.

Equities (market:equities): Raises capital in public equity markets through MSTR and preferred at-the-market programs.

Institutional flows (indicator:institutional-flows): Institutional demand for MSTR and its preferred funds the bitcoin buying; any index-eligibility change for MSTR is UNKNOWN (not verified).

Credit spreads (market:credit-spreads): STRC's 12.00% rate and sub-$100 price mark its preferred credit cost.

Interest rates (indicator:interest-rates): Fixed 8%-10% preferred coupons; AA reads funding cost as rate-sensitive.

Margin calls / forced deleveraging evidence (indicator:forced-deleveraging-evidence): Inference (AA): its 2026 bitcoin sales to fund distributions may signal funding stress; the sales alone do not prove it.

Crypto market (market:crypto-market): Self-described largest bitcoin treasury company; its buying pace is a visible demand source.

SEC (actor:sec): Files weekly bitcoin, ATM and dividend disclosures on Form 8-K.

Why it matters now

AA reads 2026 as a year of strain for Strategy's model (inference). It estimated a $14.46 billion unrealized digital-asset loss for Q1 and reported an $8.22 billion net loss for Q2, when its bitcoin was carried at $49.67 billion against a $63.94 billion cost. On 2026-06-29 it adopted a Digital Credit Capital Framework: a USD Reserve covering at least 12 months of preferred dividends and interest, a 12.00% STRC rate, buyback programs, and a BTC Monetization Program that permits bitcoin sales. It then disclosed selling at least 5,226 BTC between 2026-06-29 and 2026-08-02 (AA sum: 1,363 + 2,225 + 1,638 from its 2026-07-06 and 2026-08-03 8-Ks) to fund preferred distributions, the USD Reserve and STRC buybacks; this is a floor for that bounded period, not a full-year total. Since 2026-07-27 it has bought back STRC below its $100 stated amount, and the USD Reserve reached $4.88 billion by 2026-10-11. Bitcoin buying resumed in September, and management estimates (unaudited) a $20.91 billion Q3 gain on digital assets.

Next come the STRC holders' vote on daily dividends on 2026-10-28 and Q3 results on 2026-10-29. Whether any index provider will change MSTR's index eligibility is UNKNOWN; no such decision was verified, and no index-provider data is used here.

Risks and open questions

Bull case: Strategy holds 848,250 BTC, and management estimates (unaudited) a $20.91 billion Q3 2026 digital-asset gain. Its USD Reserve grew from $1.44 billion (2025-12-01) to $4.88 billion (2026-10-11). Converts total about $6.71 billion at 0% to 2.25%, and STRC has no scheduled maturity. Remaining ATM capacity ($18.8 billion MSTR, $17.5 billion STRC at 2026-10-11) keeps funding open.

Bear case: Senior claims are large: a $15.46 billion preferred liquidation preference and $6.71 billion of converts at 2026-06-30, against bitcoin carried at $49.67 billion that day. Preferred dividends declared were $507.7 million in Q2 2026, and STRC pays 12.00%. In mid-2026 it sold at least 5,226 BTC to pay distributions and fund buybacks; AA reads this as a possible sign of funding strain (inference, not proof). Current mNAV, and so dilution risk from ATM sales, is UNKNOWN.

Falsifiers: - Bull weakens if Strategy again sells bitcoin to fund dividends or interest. - Bull weakens if the USD Reserve falls toward its 12-month policy minimum. - Bear weakens if STRC trades sustainably near $100 and its 12.00% rate is cut. - Bear weakens if Q3 results on 2026-10-29 confirm management's unaudited $20.91 billion Q3 digital-asset gain estimate.

Value accrual gate: Four channels decide what reaches MSTR holders. Residual exposure: Strategy says MSTR is common equity junior to all debt and preferred stock; AA reads (inference) that bitcoin gains raise that residual value without senior claims first being repaid, while losses also fall on common first. Servicing obligations: interest on $6.71 billion of converts (0% to 2.25%) and cumulative preferred dividends ($507.7 million declared in Q2 2026; STRC at 12.00%) need cash from the USD Reserve, MSTR issuance or bitcoin sales. Liquidation priority: debt, then the preferred's $15.46 billion liquidation preference (2026-06-30), rank ahead of common; STRC is perpetual with no scheduled maturity, a standing senior claim, not debt due on a date. Dilution: Strategy says ATM issuance can dilute per-share economics ($18.8 billion MSTR capacity left at 2026-10-11), and its diluted share counts assume note conversion. AA arithmetic (mixed dates; not a coverage or solvency measure): converts plus liquidation preference equal roughly 31% of the 2026-09-30 estimated $70.82 billion carrying value. Accretion from ATM sales is UNKNOWN (no primary mNAV). BTC holders gain only from Strategy's net purchases; its 2026 sales added supply.

What to watch

Special meeting vote on daily STRC (and other preferred) dividends. (2026-10-28); Source: sec.gov

Q3 2026 results and webinar, including the reported Q3 digital-asset gain. (2026-10-29); Source: strategy.com

First daily STRC dividends, if the amendments pass and take effect. (2026-11-01 to 2026-11-30); Source: sec.gov

Weekly 8-Ks: bitcoin bought or sold, ATM sales, STRC repurchases, USD Reserve. (weekly; no fixed date); Source: sec.gov

Any further bitcoin sales under the BTC Monetization Program. (no scheduled date); Source: sec.gov

Any index provider decision affecting MSTR's index eligibility; status UNKNOWN, no decision verified by AA. (no scheduled date); speculative, no scheduled source

AA inference

Inference (AA): Strategy is the graph's main bridge from equity and preferred capital to bitcoin demand, so its effect on asset:crypto-btc depends on access to that capital. Its 2026 bitcoin sales and preferred buybacks show the channel can reverse, though the sales alone do not prove funding stress. Any change in demand for MSTR, including from index funds, would act on that funding channel rather than on bitcoin directly. Strategy-to-BTC edges should carry a value-accrual gate and a capital-access condition.

Sources

Strategy's FY2025 annual report describes the company as "the world's first and largest Bitcoin Treasury Company" and as an industry leader in AI-powered enterprise analytics software. (Source: sec.gov, accessed 2026-10-16)

MicroStrategy Incorporated changed its corporate name to Strategy Inc effective 2025-08-11; the MSTR ticker and CUSIP were unchanged and Nasdaq trading under the new name began at the open on 2025-08-12. (Source: sec.gov, accessed 2026-10-16)

Strategy reported acquiring 250 BTC for $21.5 million during 2026-10-05 to 2026-10-11, bringing holdings to 848,250 BTC at an aggregate cost of $64.00 billion, or $75,444 per bitcoin, including fees and expenses. (Source: sec.gov, accessed 2026-10-16)

In the same week Strategy sold 125,183 MSTR shares for $21.0 million of net proceeds, sold no STRF, STRC, STRK or STRD, and repurchased 1,932,145 STRC shares for $192.4 million. (Source: sec.gov, accessed 2026-10-16)

As of 2026-10-11 remaining ATM capacity was $18,807.6 million for MSTR, $17,510.8 million for STRC, $4,014.8 million for STRD, $2,100.0 million for STRK and $1,619.3 million for STRF. (Source: sec.gov, accessed 2026-10-16)

As of 2026-10-11 Strategy's USD Reserve, intended to support preferred dividends and interest on its indebtedness, was $4.88 billion, and USD Cash was $640.5 million. (Source: sec.gov, accessed 2026-10-16)

Strategy's 8-K of 2026-10-05 gave management estimates (unaudited, not reviewed by KPMG) of a $20.91 billion gain on digital assets for the quarter ended 2026-09-30 and a digital asset carrying value of $70.82 billion at that date. (Source: sec.gov, accessed 2026-10-16)

Strategy held 847,666 BTC on 2026-09-30 and 848,000 BTC on 2026-10-04 after buying 334 BTC on 2026-10-01 to 2026-10-04. (Source: sec.gov, accessed 2026-10-16)

On 2026-10-15 Strategy declared daily STRC dividends for record dates 2026-11-01 to 2026-11-30 at a 12.00% annual rate ($1.00 per share in total), payable only if stockholders approve the Daily Dividend Amendments and the amended certificate of designations is effective by 2026-11-01. (Source: sec.gov, accessed 2026-10-16)

Management will recommend keeping the STRC 12.00% rate until STRC shows "sustained, healthy trading near $100 per share"; the special meeting is on 2026-10-28. (Source: sec.gov, accessed 2026-10-16)

Strategy's 10-Q for the quarter ended 2026-06-30 reports 364,585,501 class A and 19,640,250 class B common shares outstanding as of 2026-07-24. (Source: sec.gov, accessed 2026-10-16)

At 2026-06-30 Strategy held 846,000 bitcoin with a fair (carrying) value of $49.67 billion against a cost basis of $63.94 billion. (Source: sec.gov, accessed 2026-10-16)

At 2026-06-30 Strategy's convertible notes were $1.01 billion due 2028 (0.625%), $1.50 billion due 2029 (0%), $800.0 million 2030A (0.625%), $2.00 billion 2030B (0%), $603.7 million due 2031 (0.875%) and $800.0 million due 2032 (2.25%); total long-term debt carried was $6.71 billion. (Source: sec.gov, accessed 2026-10-16)

At 2026-06-30 Strategy's preferred stock had an aggregate liquidation preference of $15.46 billion across STRF (10.00%), STRC (variable), STRE (10.00%), STRK (8.00%) and STRD (10.00%); preferred dividends declared were $507.7 million in Q2 2026 and $758.2 million in the first half. (Source: sec.gov, accessed 2026-10-16)

Strategy reported a Q2 2026 net loss of $8.22 billion, including an $8.32 billion unrealized loss on digital assets; net loss attributable to common stockholders was $8.62 billion, or $24.45 per diluted share. (Source: sec.gov, accessed 2026-10-16)

In its Q2 2026 release Strategy said its USD Reserve of $3.75 billion covered about 2.1 years of preferred dividends and interest, and stated: "Our objective is for STRC to trade over time at $99 to $100." (Source: sec.gov, accessed 2026-10-16)

Strategy sold 1,363 BTC for $80.8 million on 2026-06-29 to 2026-06-30 and 2,225 BTC for $135.2 million on 2026-07-01 to 2026-07-05, with proceeds used to fund preferred stock distributions and replenish the USD Reserve; holdings fell to 843,775 BTC. (Source: sec.gov, accessed 2026-10-16)

On 2026-06-29 Strategy adopted a Digital Credit Capital Framework: a USD Reserve policy (minimum 12 months of expected preferred dividends and interest), a revised STRC dividend policy, a $1.0 billion Digital Credit Securities repurchase program, a $1.0 billion class A repurchase program and a BTC Monetization Program. (Source: sec.gov, accessed 2026-10-16)

The BTC Monetization Program lets Strategy sell bitcoin to raise up to $1.25 billion for the USD Reserve, and to fund preferred dividends, interest or repurchases when management judges it more advantageous than issuing class A stock; it does not obligate any sale. The STRC rate was raised to 12.00% for record dates from 2026-07-01. (Source: sec.gov, accessed 2026-10-16)

On 2026-09-30 Strategy kept the STRC rate at 12.00% and called a special stockholder meeting for 2026-10-28 to vote on daily record dates and next-business-day payment for STRC and certain other preferred series. (Source: sec.gov, accessed 2026-10-16)

On 2026-08-31 Strategy declared quarterly dividends of $2.50 on STRF, EUR 2.50 on STRE, $2.00 on STRK and $2.50 on STRD, plus semi-monthly $0.50 STRC dividends, and expected them to be treated as non-taxable returns of capital. (Source: sec.gov, accessed 2026-10-16)

In the week to 2026-09-27 Strategy bought 1,665 BTC for $142.7 million, funded by MSTR ATM sales, repurchased 1,534,530 STRC shares for $151.7 million, and reported a USD Reserve of $5.02 billion. (Source: sec.gov, accessed 2026-10-16)

In the week to 2026-08-02 Strategy sold 1,638 BTC for $104.73 million, using $52.4 million for preferred dividends and $52.3 million for STRC repurchases; holdings were 842,138 BTC and the USD Reserve was $4.0 billion. (Source: sec.gov, accessed 2026-10-16)

On 2026-07-27 Strategy began repurchasing STRC below its $100 stated amount, funded by MSTR ATM sales and possibly bitcoin sales rather than the USD Reserve, and raised the USD Reserve by $525 million to $3.75 billion. (Source: strategy.com, accessed 2026-10-16)

On 2026-09-08 Strategy announced it repurchased $176 million of STRC and increased its Digital Credit Securities Repurchase Program to $2.0 billion. (Source: strategy.com, accessed 2026-10-16)

Strategy's 8-K of 2026-04-06 estimated a $14.46 billion unrealized loss on digital assets for Q1 2026 and reported holdings of 766,970 BTC on 2026-04-05. (Source: sec.gov, accessed 2026-10-16)

On 2025-12-01 Strategy established a $1.44 billion USD Reserve, funded by class A ATM sales, to support preferred dividends and debt interest; it then held 650,000 BTC. (Source: sec.gov, accessed 2026-10-16)

Strategy's USD Reserve stood at $2.19 billion on 2025-12-21, when it held 671,268 BTC at an average cost of $74,972. (Source: sec.gov, accessed 2026-10-16)

Strategy will release Q3 2026 results after the U.S. market close on 2026-10-29 and hold a webinar that day. (Source: strategy.com, accessed 2026-10-16)

Strategy's free writing prospectus of 2026-08-14 (investor briefing dated 2026-08-13) describes STRC as perpetual with "no scheduled maturity or sinking-fund obligation", cumulative dividends, no conversion rights, optional redemption at $101 or higher plus arrears, and ranking "junior to debt, subsidiary liabilities and STRF; senior to current STRE, STRK, STRD and common equity." (Source: sec.gov, accessed 2026-10-17)

The same prospectus states that "MSTR is common equity, junior to all debt and preferred stock," and that in a liquidation STRC holders receive the then-applicable liquidation preference plus unpaid dividends; it notes the certificate of designations and prospectus, not the briefing, govern. (Source: sec.gov, accessed 2026-10-17)

The same prospectus states that "ATM or other equity issuance can dilute voting power and per-share economics," and its diluted share-count definitions assume conversion of convertible notes (all in-the-money notes for fully diluted shares; all outstanding notes for assumed diluted shares). (Source: sec.gov, accessed 2026-10-17)