# Strategy Inc (MSTR)

Informational only - not investment advice.

CIK: 0001050446
SIC: 6199 Finance Services
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 61](/major-group/61/) > [SIC 6199 Finance Services](/industry/6199/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1050446
Filing source: https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0001050446-26-000020 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001050446.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 477,233,000 USD | 2025 | verified |
| Net income | -3,848,152,000 USD | 2025 | verified |
| Assets | 61,641,082,000 USD | 2025 | verified |
| Free cash flow | -75,453,000 USD | 2025 | computed |
| Revenue YoY | +2.97% | 2025 | computed |
| ROE | -8.72% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MSTR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 86.5% | 4.4% | 100 | 33 |
| Operating margin | -23.2% | -3.5% | 40 | 21 |
| Revenue growth | 3.0% | 15.2% | 21 | 34 |
| FCF margin | -15.8% | -27.0% | 52 | 30 |
| ROE | -8.7% | -2.1% | 41 | 33 |
| ROA | -6.2% | -0.1% | 32 | 35 |
| Liabilities / equity | 0.24 | 2.00 | 6 | 33 |
| Current ratio | 5.62 | 2.19 | 80 | 21 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6199 Finance Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 477233000 | USD | 2025 | 2026-02-19 |
| Net income | -3848152000 | USD | 2025 | 2026-02-19 |
| Assets | 61641082000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001050446.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 513,589,000 | 503,843,000 | 497,638,000 | 486,327,000 | 480,735,000 | 510,762,000 | 499,264,000 | 496,261,000 | 463,456,000 | 477,233,000 |
| Net income | 92,239,000 | 18,195,000 | 22,501,000 | 34,355,000 | -7,524,000 | -535,480,000 | -1,469,797,000 | 429,121,000 | -1,166,661,000 | -3,848,152,000 |
| Operating income | 109,512,000 | 73,222,000 | 3,981,000 | -1,002,000 | -13,625,000 | -784,527,000 | -1,275,742,000 | -115,047,000 | -1,852,978,000 | -5,444,385,000 |
| Gross profit | 420,442,000 | 407,194,000 | 398,139,000 | 386,353,000 | 389,680,000 | 418,853,000 | 396,275,000 | 386,317,000 | 333,988,000 | 327,816,000 |
| Diluted EPS | 8.01 | 1.58 | 1.97 | 3.33 | -0.78 | -53.44 | -12.98 | 2.64 | -6.06 | -15.23 |
| Operating cash flow | 110,589,000 | 78,322,000 | 10,627,000 | 60,867,000 | 53,619,000 | 93,833,000 | 3,211,000 | 12,712,000 | -53,032,000 | -67,241,000 |
| Capital expenditures | 2,337,000 | 3,982,000 | 6,846,000 | 10,182,000 | 3,651,000 | 2,706,000 | 2,486,000 | 2,938,000 | 2,978,000 | 8,212,000 |
| Assets | 768,319,000 | 933,219,000 | 855,768,000 | 916,571,000 | 1,465,612,000 | 3,557,124,000 | 2,410,272,000 | 4,762,528,000 | 25,843,685,000 | 61,641,082,000 |
| Liabilities | 216,142,000 | 327,493,000 | 326,037,000 | 408,012,000 | 912,567,000 | 2,578,166,000 | 2,793,392,000 | 2,597,556,000 | 7,613,701,000 | 10,598,110,000 |
| Stockholders' equity | 566,317,000 | 605,726,000 | 529,731,000 | 508,559,000 | 446,192,000 | 978,958,000 | -383,120,000 | 2,164,972,000 | 18,229,984,000 | 44,123,458,000 |
| Cash and cash equivalents | 401,975,000 | 420,244,000 | 109,924,000 | 456,727,000 | 59,675,000 | 63,356,000 | 43,835,000 | 46,817,000 | 38,117,000 | 2,301,470,000 |
| Free cash flow | 108,252,000 | 74,340,000 | 3,781,000 | 50,685,000 | 49,968,000 | 91,127,000 | 725,000 | 9,774,000 | -56,010,000 | -75,453,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 17.96% | 3.61% | 4.52% | 7.06% | -1.57% | -104.84% |  | 86.47% |  |  |
| Operating margin | 21.32% | 14.53% | 0.80% | -0.21% | -2.83% |  |  | -23.18% |  |  |
| Return on equity | 16.29% | 3.00% | 4.25% | 6.76% | -1.69% | -54.70% |  | 19.82% | -6.40% | -8.72% |
| Return on assets | 12.01% | 1.95% | 2.63% | 3.75% | -0.51% | -15.05% | -60.98% | 9.01% | -4.51% | -6.24% |
| Liabilities / equity | 0.38 | 0.54 | 0.62 | 0.80 | 2.05 | 2.63 |  | 1.20 | 0.42 | 0.24 |
| Current ratio | 3.69 | 3.18 | 3.01 | 2.79 | 0.95 | 0.86 | 0.83 | 0.83 | 0.71 | 5.62 |

## As-reported value updates

8 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/MSTR/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001050446.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -2.39 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 31.79 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.52 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 22,243,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 129,462,000 |  | -10.09 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 124,484,000 | 89,126,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-31 |  | 89,126,000 |  | reported discrete quarter |
| 2024-Q1 | 2024-03-31 | 115,246,000 |  | -3.09 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | -53,118,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 111,442,000 |  | -5.74 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | -102,559,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 116,071,000 |  | -1.72 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 120,697,000 | -670,810,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-31 |  | -670,810,000 |  | reported discrete quarter |
| 2025-Q1 | 2025-03-31 | 111,066,000 |  | -16.49 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | -4,217,370,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 114,488,000 |  | 32.60 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 10,020,846,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 128,691,000 |  | 8.42 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 122,988,000 | -12,436,652,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 124,300,000 | -12,542,670,000 | -38.25 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 122,368,000 | -8,219,628,000 | -24.45 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MSTR's latest 10-K: [/company/MSTR/business/](/company/MSTR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MSTR's latest 10-K: [/company/MSTR/risk-factors/](/company/MSTR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1050446/000105044626000044/mstr-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-03
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Information

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For this purpose, any statements contained herein that are not statements of historical fact, including without limitation, certain statements regarding industry prospects and our results of operations or financial position, may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions are intended to identify forward-looking statements. The important factors discussed under Part II, "Item 1A. Risk Factors” of this Quarterly Report, which are incorporated by reference herein, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Such forward-looking statements represent management’s current expectations and are inherently uncertain. Investors are warned that actual results may differ from management’s expectations.

Business Overview

Strategy is the world's first and largest Bitcoin Treasury Company. We pursue financial innovation strategies designed to generate value from our bitcoin holdings, including by 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.

Segment Reporting

Beginning with the second quarter of 2026, we have realigned our financial reporting to present our operations as two reportable segments: our Software segment and our Bitcoin segment. In prior periods, we reported a single reportable operating segment, our Software segment (previously referred to as the “Software Business”), and presented the bitcoin-related activities now comprising our Bitcoin segment within a non-operating “Corporate & Other” category. We made this change to provide users of our financial statements with greater visibility into the activities of our software business distinct from our bitcoin treasury operations. See Note 13, Segment Information, to the Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report for additional information regarding our reportable segments. The discussion that follows presents a consolidated overview of our results of operations, liquidity, and capital resources, followed by a separate discussion of the results of each of our reportable segments.

Bitcoin Strategy

We believe that bitcoin is a financial and technological innovation and represents a compelling long-term treasury reserve asset due to its scarcity, durability, and global liquidity. Through our bitcoin treasury operations, we execute on our bitcoin acquisition, capital markets and capital management strategies, which are designed to enable us to accumulate bitcoin in a manner we believe to be accretive to our shareholders in the long term and to generate value from our bitcoin holdings.

Under our Treasury Reserve Policy, our treasury reserve assets consist of:

•cash and cash equivalents and short-term investments (“Cash Assets”) in excess of working capital requirements; and

•bitcoin, which serves as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets.

In addition to and in conjunction with our Treasury Reserve Policy, we pursue a corporate strategy of acquiring and holding bitcoin, including with the proceeds of capital raising transactions. Our capital markets strategy generally involves issuing preferred securities, which we collectively refer to as “digital credit,” and class A common stock through at-the-market equity offering programs (“ATMs”) when we deem advantageous.

As part of our capital management strategy, we maintain a U.S. dollar reserve (the "USD Reserve") intended to support the payment of dividends on our Preferred Stock and interest expense on our outstanding indebtedness. In June 2026, our board of directors approved a formal policy governing the USD Reserve and adopted a broader capital management framework, which we refer to as our “Digital Credit Capital Framework,” consisting of a board-approved USD Reserve policy, a revised STRC dividend rate policy, a repurchase program for our Preferred Stock, a repurchase program for our class A common stock, and a BTC monetization program, as discussed in further detail under “Liquidity and Capital Resources—Digital Credit Capital Framework” below. Our capital management strategy also contemplates that we may (i) enter into additional capital raising transactions that are secured, directly or indirectly, by our assets, including bitcoin, (ii)

33

pursue strategies intended to generate income streams or otherwise generate funds using our bitcoin holdings, and (iii) periodically sell bitcoin for general corporate purposes, such as satisfying liquidity needs and financial obligations.

"Preferred Stock" refers to, collectively, our STRF Stock, STRC Stock, STRE Stock, STRK Stock and STRD Stock.

We view our bitcoin holdings as long-term holdings and plan to continue to accumulate bitcoin over the long term. We have not established a specific target amount of bitcoin to hold and actively evaluate market conditions, financing opportunities, liquidity needs, and capital structure considerations on an ongoing basis.

We are not registered as an investment company under the Investment Company Act of 1940, as amended, and stockholders do not have the protections associated with ownership of shares in a registered investment company, nor the protections afforded by the Commodity Exchange Act of 1936.

Our Enterprise Analytics Software Strategy

Strategy is a pioneer in AI-powered solutions delivering a comprehensive portfolio of software and services that addresses a wide spectrum of enterprise data challenges. We provide solutions designed to transform complex, fragmented data environments into unified, reliable ecosystems that drive insight and action across organizations worldwide. Our vision is to drive growth and competitive advantage for our customers by delivering Intelligence Everywhere™.

Our cloud-native analytics platform, is used by enterprises across a wide range of industries to deliver business intelligence and analytics solutions. It delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Complementing this, Strategy Mosaic™ is a universal data layer that enables organizations to achieve a single source of truth across their data. It provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. AI-powered data modeling hastens data product creation, while Mosaic’s intelligent architecture promotes accelerated performance for all workloads.

Integral to the Strategy portfolio are generative AI capabilities that are designed to automate and accelerate the deployment of AI-enabled applications across the enterprise. By making advanced analytics accessible through conversational AI, we provide non-technical users with timely, actionable insights for decision-making.

Bitcoin Activity and Holdings

Bitcoin Acquisition Activity

The following table presents a roll-forward of our bitcoin holdings, including additional information related to our bitcoin purchases, bitcoin sales, and unrealized gain or loss on digital assets within the respective periods:

[[GREPCENT_TABLE]]
[["","","","","","Digital Asset Original Cost Basis (in thousands)","","Digital Asset Carrying Value (in thousands)","","Approximate Number of Bitcoins Held","","ApproximateAveragePurchase or Sale PricePer Bitcoin"],["Balance at January 1, 2025 (after adoption of ASU 2023-08)","","","","","$","27,968,248","","","$","41,790,421","","","447,470","","","$","62,503"],["Digital asset purchases","","","(a)","","7,661,663","","","7,661,663","","","80,715","","","94,922"],["Unrealized loss on digital assets","","","","","\u2014","","","(5,906,005)","","","\u2014","","","\u2014"],["Balance at March 31, 2025","","","","","$","35,629,911","","","$","43,546,079","","","528,185","","","$","67,457"],["Digital asset purchases","","","(b)","","6,769,205","","","6,769,205","","","69,140","","","97,906"],["Unrealized gain on digital assets","","","","","\u2014","","","14,047,514","","","\u2014","","","\u2014"],["Balance at June 30, 2025","","","","","$","42,399,116","","","$","64,362,798","","","597,325","","","$","70,982"],["Balance at January 1, 2026","","","","","$","50,435,331","","","$","58,854,028","","","672,500","","","$","74,997"],["Digital asset purchases","","","(c)","","7,251,126","","","7,251,126","","","89,599","","","80,929"],["Unrealized loss on digital assets","","","","","\u2014","","","(14,455,479)","","","\u2014","","","\u2014"],["Balance at March 31, 2026","","","","","$","57,686,457","","","$","51,649,675","","","762,099","","","$","75,694"],["Digital asset purchases","","","(d)","","6,420,975","","","6,420,975","","","85,296","","","75,279"],["Digital asset sales","","","(e)","","(168,126)","","","(83,205)","","","(1,395)","","","59,663"],["Unrealized loss on digital assets","","","","","\u2014","","","(8,315,365)","","","\u2014","","","\u2014"],["Balance at June 30, 2026","","","(f)","","$","63,939,306","","","$","49,672,080","","","846,000","","","$","75,578"]]
[[/GREPCENT_TABLE]]

34

(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 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.

(d)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.

(e)The proceeds from the sales were used to fund dividend payments on Preferred Stock.

(f)$75,578 presented in the Approximate Average Purchase or Sale Price Per Bitcoin column represents the average price we paid for the bitcoin we held as of June 30, 2026.

Our unrealized loss on digital assets for the three and six months ended June 30, 2026 amounted to $8.32 billion and $22.77 billion, respectively.

Bitcoin Holdings

The following table shows the approximate number of bitcoins held at the end of each respective period, as well as market value calculations of our bitcoin holdings based on the lowest, highest, and ending market prices (rounded to

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1050446/000105044626000020/mstr-20251231.htm
Complete FY 2025 MD&A: /company/MSTR/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Information

The following discussion and analysis provides information which our management believes is relevant to an assessment and understanding of our financial condition and results of operations. This discussion and analysis should be read together with our consolidated financial statements and related notes that are included elsewhere in this Annual Report. In addition to historical financial information, this discussion and analysis contains forward-looking statements that are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control. See the section of this Annual Report entitled “Forward Looking Information and Risk Factor Summary.” Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Part I. Item 1A. Risk Factors” or elsewhere in this Annual Report.

10-for-1 stock split

On August 7, 2024, we completed a 10-for-1 stock split of our class A and class B common stock. See Note 2(a), Summary of Significant Accounting Policies – Basis of Presentation, to the Consolidated Financial Statements contained in Part II, Item 8 of this Annual Report, for further information. As a result of the stock split, all applicable share and per share information presented within this “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” has been retroactively adjusted to reflect the stock split for all periods presented.

Management’s Discussion and Analysis for the Year Ended December 31, 2023

Management’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2023, including comparison of our results for the years ended December 31, 2024 and 2023, is included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Business Overview

Strategy is the world's first and largest Bitcoin Treasury Company. We pursue financial innovation strategies designed to generate value from our bitcoin holdings, including by 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.

Bitcoin Strategy

We believe that bitcoin is a financial and technological innovation that represents a compelling long-term treasury reserve asset due to its scarcity, durability, and global liquidity. Through our bitcoin treasury operations, we execute on our bitcoin acquisitions, capital management and capital markets strategies, which are designed to enable us to accumulate bitcoin in a manner we believe to be accretive to our shareholders in the long term and to generate value from our bitcoin holdings.

We announced our first acquisition of bitcoin in August 2020. In September 2020, our board of directors adopted a Treasury Reserve Policy, under which our treasury reserve assets consist of:

•Cash Assets in excess of working capital requirements; and

•bitcoin, which serves as the primary treasury reserve asset on an ongoing basis, subject to market conditions and anticipated needs of the business for Cash Assets.

In the first quarter of 2021, we adopted, in addition to and in conjunction with our Treasury Reserve Policy, a corporate strategy of acquiring and holding bitcoin, including with the proceeds of capital raising transactions. Our capital markets strategy generally involves issuing Class A common stock and preferred securities through ATMs when we deem advantageous. Prior to 2025, we primarily relied on proceeds from sales of class A common stock and senior convertible notes to purchase bitcoin. We also previously purchased bitcoin using cash flow from operations, and borrowings under senior secured notes and a collateralized term loan.

In 2025, we structured and issued five classes of Preferred Stock instruments, which provide differentiated indirect economic exposure to our class A common stock and bitcoin holdings, which we collectively refer to as “digital credit.”

In December 2025, as part of our capital management strategy, we established the USD Reserve to support the payment of dividends on our preferred stock and interest on our outstanding indebtedness. As of February 13, 2026, the balance of the USD Reserve was $2.25 billion, held in cash and cash equivalents. We may, in our sole and absolute discretion, increase, reduce, eliminate, adjust, or reallocate amounts designated as part of the USD Reserve from time to time based on market

60

conditions, liquidity needs, risk considerations, and other factors. To optimize our cash management, we may also deploy assets designated as part of the USD Reserve into USD-denominated and/or USD-referenced assets, including instruments that do not constitute cash or cash equivalents.

We evaluate our bitcoin strategy on an ongoing basis in light of market conditions, our capital structure, our contractual obligations, and our anticipated operating needs for cash resources.

We intend for our bitcoin strategy to remain adaptable. While our bitcoin strategy today includes developing and issuing novel “digital credit” instruments, we regularly evaluate other potential financial innovation opportunities that complement our bitcoin strategy. These opportunities may include, among others, additional financing structures and strategies intended to generate income streams or otherwise generate funds using our bitcoin holdings. There can be no assurance that any such opportunities will be available on attractive terms, or at all, or that we will pursue or successfully implement any particular strategy.

We are not registered as an investment company under the Investment Company Act of 1940, as amended, and stockholders do not have the protections associated with ownership of shares in a registered investment company, nor the protections afforded by the Commodity Exchange Act of 1936.

Enterprise Analytics Software Strategy

Strategy is a pioneer in AI-powered solutions delivering a comprehensive portfolio of software and services that addresses a wide spectrum of enterprise data challenges. We provide solutions designed to transform complex, fragmented data environments into unified, reliable ecosystems that drive insight and action across organizations worldwide. Our vision is to drive growth and competitive advantage for our customers by delivering Intelligence Everywhere™.

Strategy One™, our cloud-native analytics platform, is used by enterprises across a wide range of industries to deliver business intelligence and analytics solutions. It delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Complementing this, Strategy Mosaic™ is a universal data layer that enables organizations to achieve a single source of truth across their data. It provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. AI-powered data modeling hastens data product creation, while Mosaic’s intelligent architecture promotes accelerated performance for all workloads.

Integral to the Strategy portfolio are generative AI capabilities that are designed to automate and accelerate the deployment of AI-enabled applications across the enterprise. By making advanced analytics accessible through conversational AI, we provide non-technical users with timely, actionable insights for decision-making.

Bitcoin Activity and Holdings

Bitcoin Acquisition Activity

The following table presents a roll-forward of our bitcoin holdings, including additional information related to our bitcoin purchases, bitcoin sales (if any), unrealized loss (gain) on digital assets, digital asset impairment losses, and cumulative effect adjustments within the respective periods:

[[GREPCENT_TABLE]]
[["","Source of Capital Used to Purchase Bitcoin","","Digital AssetOriginal CostBasis (in thousands)","","Digital AssetImpairment Losses(in thousands)","","Digital AssetCarrying Value (in thousands)","","Approximate Number of Bitcoins Held","","Approximate Average Purchase Price Per Bitcoin"],["Balance at December 31, 2023","","","$","5,895,489","","","$","(2,269,013)","","","$","3,626,476","","","189,150","","","$","31,168"],["Digital asset purchases","(a)","","22,072,759","","","","","22,072,759","","","258,320","","","85,447"],["Digital asset impairment losses","","","","","(1,789,862)","","","(1,789,862)"],["Balance at December 31, 2024 (before adoption of ASU 2023-08)","","","$","27,968,248","","","$","(4,058,875)","","","$","23,909,373","","","447,470","","","$","62,503"],["Cumulative effect upon adoption of ASU 2023-08","","","","","4,058,875","","","17,881,048"],["Balance immediately following adoption of ASU 2023-08","","","$","27,968,248","","","n/a","","$","41,790,421","","","447,470","","","$","62,503"],["Digital asset purchases","(b)","","22,467,083","","","n/a","","22,467,083","","","225,030","","","99,840"],["Unrealized loss on digital assets","","","","","n/a","","(5,403,476)"],["Balance at December 31, 2025","","","$","50,435,331","","","n/a","","$","58,854,028","","","672,500","","","$","74,997"]]
[[/GREPCENT_TABLE]]

(a)During 2024, we purchased bitcoin using $16.33 billion of the net proceeds from our sale of class A common stock under our ATMs, $2.97 billion of the net proceeds from our issuance of the 2029 Convertible Notes, $782.0 million of

61

the net proceeds from our issuance of the 2030A Convertible Notes, $756.0 million of the net proceeds from our issuance of the 2032 Convertible Notes, $592.3 million of the net proceeds from our issuance of the 2031 Convertible Notes, $458.2 million of the net proceeds from our issuance of the 2028 Convertible Notes, and $179.7 million of Excess Cash.

(b)During 2025, we purchased bitcoin using $1.99 billion of the net proceeds from our issuance of the 2030B Convertible Notes, $1.18 billion of the net proceeds from the sale of STRF Stock under its initial public offering and our ATMs, $2.63 billion of the net proceeds from the sale of STRC Stock under its initial public offering and our ATMs, $699.0 million of the net proceeds from the sale of STRE Stock under its initial public offering, $1.22 billion of the net proceeds from the sale of STRK Stock under its initial public offering and our ATMs, $1.16 billion of the net proceeds from the sale of STRD Stock under its initial public offering and our ATMs, and $13.59 billion of the net proceeds from the sale of class A common stock under our ATMs.

"Excess Cash" refers to cash in excess of the minimum Cash Assets that we are required to hold under our Treasury Reserve Policy, which may include cash generated by operating activities and cash from the proceeds of financing activities.

Our unrealized loss on digital assets for the year ended December 31, 2025 amounted to $5.40 billion partially offset by $1.55 billion in deferred tax benefit, respectively. See “Results of Operations – Bitcoin Impacts” for additional information.

Bitcoin Holdings The following table shows the approximate number of bitcoins held at the end of each respective period, as well as fair market value calculations of our bitcoin holdings based on the lowest, highest, and ending market prices of one bitcoin on the Co

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MSTR/mda/fy2025/
All MD&A years: /company/MSTR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MSTR/mda/fy2024/): filed 2025-02-18; accession 0000950170-25-021814 (https://www.sec.gov/Archives/edgar/data/1050446/000095017025021814/mstr-20241231.htm)
- [FY 2023 MD&A](/company/MSTR/mda/fy2023/): filed 2024-02-15; accession 0000950170-24-015847 (https://www.sec.gov/Archives/edgar/data/1050446/000095017024015847/mstr-20231231.htm)
- [FY 2022 MD&A](/company/MSTR/mda/fy2022/): filed 2023-02-16; accession 0001564590-23-002012 (https://www.sec.gov/Archives/edgar/data/1050446/000156459023002012/mstr-10k_20221231.htm)
- [FY 2021 MD&A](/company/MSTR/mda/fy2021/): filed 2022-02-16; accession 0001564590-22-005287 (https://www.sec.gov/Archives/edgar/data/1050446/000156459022005287/mstr-10k_20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6199 Finance Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [M2SL](/indicator/M2SL/): M2
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MSTR.md · JSON record: /company/MSTR.json · verified financials: /company/MSTR/financials.json / /company/MSTR/financials.csv · machine TOC for the whole site: /llms.txt