Results
Strategy Announces Second Quarter Financial Results;
Corporate events
Currently Holds 843,775 Bitcoin; Now the Largest Institutional Holder Globally
Results
8843,775 bitcoin holdings, 25% growth year to date 2026
4.5% BTC Yield achieved year to date
BTC Monetization Program established; $218.4 million of sales year to date 2026
Corporate events
$17.06 b illion of capital raised year to date through our ATM programs
Capital return
$1.0 billion MSTR repurchase program established; no repurchases to date
Corporate events
Introduced new metrics such as BTC Hurdle ARR & Net Bitcoin Per Share on Strategy.com
Results
2STRC issuances raised $7.53 billion year to date 2026, representing a 254% growth
Capital return
$1.06 billion in cumulative dividends paid on all preferred stock to date
Grew the USD Reserve to $3.75 billion, over 2.1 years of coverage, reserved for dividends and interest
Corporate events
Repurchased $28.9 million aggregate notional amount of STRC for $25.0 million, a 13% discount to par
Management commentary
“In the second quarter of 2026, Strategy strengthened its balance sheet while navigating a meaningful bitcoin price decline.
4We grew our bitcoin holdings by 11% to 846,000 bitcoin, reduced our convertible debt by 18% to $6.7 billion, increased our USD Reserve by 12% to $2.4 billion, and grew Bitcoin Per Share by 5%.
Our objective is for STRC to trade over time at $99 to $100.
If STRC trades below $100, we intend to repurchase STRC shares in a regular and disciplined manner, scaling our repurchases according to market price and liquidity.
These repurchases are an attractive use of capital that reduces our future preferred dividend requirements at a discount while allowing independent market demand to establish a healthy and sustainable market,” said Phong Le, President and Chief Executive Officer.
“Strategy's USD Reserve currently stands at $3.75 billion, which is enough to cover our existing preferred dividend payments and interest obligations for more than 2.1 years.
7We've also built a track record of 18 months of consecutive dividend payments, having never missed a dividend despite the recent deep drawdown in bitcoin price.
To give investors clearer transparency into our credit quality and equity strength, we've introduced a set of enhanced metrics, now available on strategy.com.
Our BTC Hurdle ARR of 10.8% represents our current effective cost of credit.
If BTC ARR is above this
rate, Net BTC Per Share captures a positive spread and appreciates faster than bitcoin on a go-forward basis,” said Andrew Kang, Chief Financial Officer.
“In the midst of this phase of muted bitcoin sentiment and market skepticism, we continue to evolve our business model and establish Digital Credit as a new asset class.
Our plan is to return STRC to health with stable demand, high liquidity, and low volatility trading near par.
We believe this is the best way to create shareholder value over the long term,” said Michael Saylor, Founder and Executive Chairman.
Results
Q2 Financial Summary
6Operating Loss: Operating loss for the second quarter of 2026 was $8.33 billion, compared to $14.03 billion operating income for the second quarter of 2025.
Operating loss for the second quarter of 2026 includes an unrealized loss on the Company’s digital assets of $8.32 billion, compared to an unrealized gain on the Company’s digital assets of $14.05 billion for the second quarter of 2025.
5Net Loss and Net Loss Attributable to Common Stock: For the second quarter of 2026, the Company reported a net loss of $8.22 billion, or a net loss of $24.45 per common share on a diluted basis, as compared to a net income of $10.02 billion, or a net income of $32.60 per common share on a diluted basis, for the second quarter of 2025.
3Net loss attributable to common stockholders for the second quarter of 2026 was $8.62 billion, reflecting $400.7 million of dividends on preferred stock, compared to net income attributable to common stockholders of $9.97 billion, reflecting $49.1 million of dividends on preferred stock, for the second quarter of 2025.
Cash and Cash Equivalents, and Short-term Investments: As of June 30, 2026, the Company had cash and cash equivalents of $1.71 billion, as compared to $2.21 billion as of March 31, 2026.
As of June 30, 2026, the company had short term investments of $736.1 million; there were no short-term investments as of March 31, 2026.
Revenues: Total revenues for the second quarter of 2026 were $122.4 million, compared to total revenues of $114.5 million for the second quarter of 2025, a 6.9% increase year-over-year.
Gross Profit: Gross profit for the second quarter of 2026 was $81.6 million, representing a 66.6% gross margin, compared to $78.7 million, representing a gross margin of 68.8%, for the second quarter of 2025.
Bitcoin Summary (as of July 26, 2026)
BTC Yield: Achieved BTC Yield of 4.5% in 2026 YTD.
BTC Gain: Achieved BTC Gain of 29,997 in 2026 YTD.
BTC $ Gain: Achieved BTC $ Gain of $1.95 billion in 2026 YTD, based on the July 27, 2026 bitcoin market price of $64,915.
Digital Assets: As of July 26, 2026, the Company’s digital assets were comprised of approximately 843,775 bitcoins, with an original cost basis and market value of $63.69 billion and $54.77 billion, respectively, which reflect an average cost per bitcoin of approximately $75,476 and a market price per bitcoin of approximately $64,915 as of July 27, 2026.
Corporate events
ATM Offerings: The Company received aggregate gross proceeds of approximately $8.41 billion during the three months ended June 30, 2026, and additional aggregate gross proceeds of approximately $1.28 billion between July 1, 2026 and July 26, 2026, from the following sales made under its at-the-market offering program ("ATM").
(Includes shares sold but not yet settled as of July 26, 2026)
Capital return
STRC Stock Dividend: Since the start of FY2026, the Company has declared and paid, or will pay, the following dividends on its STRC Stock:
Record DateAnnualized STRC RateDividend (USD/Share)Payment Date
Monthly STRC Dividends
January 15, 202611.00%$0.92January 31, 2026
February 15, 202611.25%$0.94February 28, 2026
March 15, 202611.50%$0.96March 31, 2026
April 15, 202611.50%$0.96April 30, 2026
May 15, 202611.50%$0.96May 31, 2026
June 15, 202611.50%$0.96June 30, 2026
Semi-Monthly STRC Dividends
June 30, 202611.50%$0.48July 15, 2026
July 15, 202612.00%$0.50July 31, 2026
July 31, 202612.00%$0.50August 15, 2026
Corporate events
Convertible Note Repurchase: In May 2026, the Company repurchased $1.50 billion aggregate principal amount of its 0% Convertible Senior Notes due 2029 in negotiated transactions for approximately $1.38 billion in cash, an approximate 8% discount to par.
As a result, the Company reduced its aggregate principal amount of convertible notes outstanding from $8.21 billion to $6.71 billion.
Capital return
Digital Credit Capital Framework Summary (as of July 26, 2026)
USD Reserve Policy: The Company has grown the USD Reserve to $3.75 billion, representing approximately 2.1 years of coverage reserved for preferred-stock dividend payments and interest on outstanding indebtedness.
1STRC Dividend Policy: Increased the dividend rate to 12.00% to support STRC trading near its $100 per share stated amount, and will maintain the 12.00% rate until STRC demonstrates sustained, healthy trading near $100 per share.
$1.0 Billion Digital Credit Securities Repurchase Program: From July 20 through July 26, 2026, the Company repurchased 288,930 shares of STRC ($28.89 million aggregate notional) for approximately $25.00 million at an average price of $86.53 per share, an approximate 13.47% discount to the $100 per share stated amount.
Approximately $975.00 million remains available, and while STRC trades below $100 per share the Company intends to be a regular and disciplined purchaser, buying more at deeper discounts and tapering as STRC approaches par.
$1.0 Billion MSTR Repurchase Program: No repurchases to date.
The Company will consider repurchasing MSTR when management believes it is trading below intrinsic value, which would be accretive to common shareholders.
BTC Monetization Program: The Company has board authorization to sell bitcoin to:
Fund the USD Reserve up to $1.25 billion of bitcoin sales
Fund preferred stock dividends and interest expense as they become payable, or to replenish the USD Reserve after such payments
Fund repurchases of MSTR or Digital Credit Securities under our repurchase programs
The Company has sold approximately $218.4 million of bitcoin year to date 2026 to fund a portion of our preferred stock dividends.
Outlook
ROC Dividend Guidance
Strategy believes that it will not have any accumulated earnings & profits for U.S. federal income tax purposes (“E&P”), and does not expect to generate current E&P in the current year or the foreseeable future.
Based on these expectations, Strategy expects the distributions paid on its preferred equity instruments to be treated as non-taxable return of capital ("ROC") for the foreseeable future (i.e., ten years or more).
Strategy Dashboard
Capital return
In addition, the Company is required to pay dividends with respect to its perpetual preferred stock in perpetuity.
The Company could pay these dividends with cash or, in the case of STRK, by issuing shares of class A common stock.
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