Bitcoin Highlights (as of February 1, 2026)
-- 713,502 bitcoin holdings at a total cost of $54.26 billion, or $76,052
per bitcoin
-- 22.8% BTC Yield achieved in FY2025
Capital Markets Highlights
-- Largest US equity issuer in FY2025, representing 8% of total US equity
issuance
-- $25.3 billion raised in FY2025
-- Five IPOs of preferred stock completed in FY2025, raising $5.5 billion
of gross proceeds
Digital Credit Highlights (as of February 1, 2026)
-- STRC scaled to an aggregate stated amount of $3.4 billion, with a
current dividend rate of 11.25%
-- $413 million in cumulative distributions paid, representing a blended
annual dividend rate of 9.6%
-- $2.25 billion USD Reserve established providing 2.5 years of dividend
and interest coverage
-- Return of Capital ("ROC") distributions expected to continue for the
foreseeable future, i.e., ten years or more
TYSONS CORNER, Va.--(BUSINESS WIRE)--February 05, 2026--
Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) ("Strategy" or the "Company"), the largest corporate holder of bitcoin and the world's first Bitcoin Treasury Company, today announces financial results for the three-month period ended December 31, 2025 (the fourth quarter of its 2025 fiscal year).
"We raised $25.3 billion of capital in 2025 to advance our Bitcoin treasury strategy, making us the largest equity issuer among U.S. public companies for a second consecutive year. We increased our holdings to 713,502 bitcoins, including 41,002 bitcoins acquired in January 2026 alone. STRC (Stretch), our flagship Digital Credit instrument, has grown to $3.4 billion in size, supported by increasing liquidity and declining volatility. Our variable dividend rate mechanism for STRC, currently set at 11.25%, has helped maintain STRC price stability near the $100 stated amount despite a weaker bitcoin price environment. In 2026, we remain focused on expanding STRC to generate amplification and drive growth in Bitcoin Per Share (BPS) for MSTR common stock investors," said Phong Le, President and Chief Executive Officer.
"2025 marked a landmark year for corporate Bitcoin adoption, supported by the implementation of fair value accounting for bitcoin, clarity that unrealized gains on bitcoin are not taxed under CAMT, and the relaunch of our S&P credit rating. We also executed five preferred equity IPOs, launching our Digital Credit platform that is designed to reduce bitcoin volatility and risk while providing tax-deferred fixed income. We also established a $2.25 billion USD Reserve, providing more than 2.5 years of coverage to support our dividend obligations, further strengthening our credit profile. Strategy's capital structure is stronger and more resilient today than ever before," said Andrew Kang, Chief Financial Officer.
"Strategy has built a digital fortress anchored by 713,502 bitcoins and our shift to Digital Credit, which aligns with our indefinite bitcoin horizon. MSTR and STRC operate as complementary components of our capital structure, with STRC generating amplification for MSTR investors and MSTR providing substantial asset coverage while absorbing bitcoin price volatility for STRC investors. We are also excited about an ecosystem emerging around STRC, which would reinforce Strategy's position as the dominant issuer of bitcoin-backed credit," said Michael Saylor, Executive Chairman.
Q4 Financial Summary
-- Operating Loss: Operating loss for the fourth quarter of 2025 was $17.4
billion, compared to an operating loss of $1.0 billion for the fourth
quarter of 2024. Operating loss for the fourth quarter of 2025 includes
an unrealized loss on the Company's digital assets of $17.4 billion. This
is the fourth quarterly reporting period in which we have applied fair
value accounting. Digital asset impairment losses for the fourth quarter
of 2024, determined in accordance with the cost-less-impairment
accounting model we were subject to prior to January 1, 2025, amounted to
$1.0 billion.
-- Net Loss and Net Loss Attributable to Common Stock: Net loss for the
fourth quarter of 2025 was $12.4 billion, or $42.93 per common share on a
diluted basis, as compared to a net loss of $670.8 million, or $3.03 per
common share on a diluted basis, for the fourth quarter of 2024. Net loss
attributable to common stockholders for the fourth quarter of 2025 was
$12.6 billion, compared to a net loss of $670.8 million for the fourth
quarter of 2024.
-- Cash and Cash Equivalents: As of December 31, 2025, the Company had
cash and cash equivalents of $2.3 billion, as compared to $38.1 million
as of December 31, 2024, an increase of approximately $2.3 billion
reflecting the Company's establishment of its USD Reserve in the fourth
quarter of 2025.
-- Software Highlights
-- Revenues:
-- Total revenues for the fourth quarter of 2025 were $123.0
million, a 1.9% increase year-over-year, compared to the
fourth quarter of 2024.
-- Subscription Services Revenues for the fourth quarter of
2025 were $51.8 million, a 62.1% increase year-over-year.
-- Product licenses and subscription services revenues for
the fourth quarter of 2025 were $59.6 million, a 26.3%
increase year-over-year.
-- Product support revenues were $48.5 million for the
fourth quarter of 2025, a 16.9% decrease year-over-year.
-- Other services revenues were $14.9 million for the fourth
quarter of 2025, a 1.8% decrease year-over-year.
-- Gross Profit: Gross profit for the fourth quarter of 2025 was
$81.3 million, representing a 66.1% gross margin, compared to
$86.5 million, representing a gross margin of 71.7%, for the
fourth quarter of 2024.
Bitcoin Summary
-- BTC Yield: Achieved full year 2025 BTC Yield of 22.8%, compared to the
full year 2025 target range of 22.0% to 26.0% (as updated on December 1,
2025).
-- BTC Gain: Achieved full year 2025 BTC Gain of 101,873.
-- BTC $ Gain: Achieved full year 2025 BTC $ Gain of $8.9 billion (based
on bitcoin price of approximately $87,515 as of December 31, 2025),
compared to the full year 2025 target range of $8.4 billion to $12.8
billion (as updated on December 1, 2025).
-- Digital Assets: As of February 1, 2026, the Company's digital assets
were comprised of approximately 713,502 bitcoins, with an original cost
basis and market value of $54.26 billion and $59.75 billion, respectively,
which reflects an average cost per bitcoin of approximately $76,052 and a
market price per bitcoin of approximately $83,740 as of January 30, 2026,
respectively.
Capital Markets Summary
-- The Company received aggregate gross proceeds of approximately $5.6
billion during the three months ended December 31, 2025, and additional
aggregate gross proceeds of approximately $3.9 billion between January 1,
2026 and February 1, 2026, from the following transactions:
-- Common Stock ATM Program: During the three months ended December
31, 2025, the Company received aggregate gross proceeds of
approximately $4.4 billion through the issuance and sale of
24,769,210 shares of its class A common stock. Between January 1,
2026 and February 1, 2026, the Company received aggregate gross
proceeds of approximately $3.4 billion through the issuance and
sale of an additional 20,205,642 shares(1) of its class A common
stock under its at-the-market class A common stock offering
program (the "Common Stock ATM Program"). As of February 1, 2026,
approximately $8.1 billion remained available under the Common
Stock ATM Program.
-- STRK ATM Program: During the three months ended December
31, 2025, the Company received aggregate gross proceeds of
approximately $33.8 million through the issuance and sale
of 376,082 shares of its 8.00% Series A Perpetual Strike
Preferred Stock ("STRK Stock") under its at-the-market STRK
Stock offering program (the "STRK ATM Program"). Between
January 1, 2026 and February 1, 2026, the Company received
aggregate gross proceeds of approximately $3.4 million
through the issuance and sale of an additional 38,796
shares of its STRK Stock under the STRK ATM Program. As of
February 1, 2026, approximately $20.3 billion remained
available for issuance under the STRK ATM Program.
-- STRF ATM Program: During the three months ended December
31, 2025, the Company received aggregate gross proceeds of
approximately $99.5 million through the issuance and sale
of 891,397 shares of its 10.00% Series A Perpetual Strife
Preferred Stock ("STRF Stock") under its at-the-market STRF
Stock offering program (the "STRF ATM Program"). Between
January 1, 2026 and February 1, 2026, the Company did not
issue shares of its STRF Stock under the STRF ATM Program.
As of February 1, 2026, approximately $1.6 billion remained
available for issuance under the STRF ATM Program.
-- STRD ATM Program: During the three months ended December
31, 2025, the Company received aggregate gross proceeds of
approximately $136.6 million through the issuance and sale
of 1,702,080 shares of its 10.00% Series A Perpetual Stride
Preferred Stock ("STRD Stock") under its at-the-market STRD
Stock offering program (the "STRD ATM Program"). Between
January 1, 2026 and February 1, 2026, the Company did not
issue shares of STRD Stock under the STRD ATM Program. As
of February 1, 2026, approximately $4.0 billion remained
available for issuance under the STRD ATM Program.
-- STRC ATM Program: During the three months ended December
31, 2025, the Company received aggregate gross proceeds of
approximately $157.6 million through the issuance and sale
of 1,575,952 shares of its Variable Rate Series A Perpetual
Stretch Preferred Stock ("STRC Stock") under its
at-the-market STRC Stock offering program (the "STRC ATM
Program"). Between January 1, 2026 and February 1, 2026,
the Company received aggregate gross proceeds of
approximately $421.0 million through the issuance and sale
of an additional 4,207,834 shares of STRC Stock under the
STRC ATM Program. As of February 1, 2026, approximately
$3.6 billion remained available for issuance under the STRC
ATM Program.
-- IPO of STRE Stock: In November 2025, the Company received
gross proceeds of approximately EUR620.0 million ($716.8
million based on a USD/EUR exchange rate of 1.1561) through
the issuance and sale of 7,750,000 shares of the 10.00%
Series A Perpetual Stream Preferred Stock ("STRE Stock") at
a public offering price of EUR80.00 per share.
(1) Including 61,563 shares sold on January 30, 2026 and settled on February 2, 2026.
-- STRC Stock Dividend: Since the IPO of the STRC Stock, the Company has
declared and paid, or will pay, the following dividends:
Month Annualized STRC Rate Dividend (USD/Share) Payment Date
------------ -------------------- -------------------- ------------------
July/August 9.00% $0.80 August 31, 2025
September 10.00% $0.83 September 30, 2025
October 10.25% $0.85 October 31, 2025
November 10.50% $0.88 November 30, 2025
December 10.75% $0.90 December 31, 2025
January 11.00% $0.92 January 31, 2026
February 11.25% $0.94 February 28, 2026
USD Reserve Summary
As of February 1, 2026, the Company has a USD Reserve of $2.25 billion, which provides approximately 2.5 years of coverage for dividends on its preferred stock and interest on its outstanding indebtedness ("Dividends"). The USD Reserve was funded using proceeds from the sale of shares of class A common stock under the Common Stock ATM Program.
Strategy's current intention is to maintain the USD Reserve at an amount sufficient to fund two to three years of its Dividends. The maintenance of this USD Reserve, as well as its amount, terms and conditions, remains subject to Strategy's sole and absolute discretion and Strategy may adjust the USD Reserve from time to time based on market conditions, liquidity needs and other factors.
STRC Dividend Rate Guidance
-- STRC Dividend Adjustment Framework: Strategy is updating its
rules-based monthly dividend recommendation framework for STRC Stock.
Strategy's current intention, subject to change in its sole discretion,
is to evaluate dividend rates each month using the volume-weighted
average price (VWAP) of STRC Stock for the month, as follows:
-- Below $95.00: Recommend a dividend rate increase of 50 basis
points or more for the next period.
-- $95.00 - $98.99: Recommend a dividend rate increase of 25 basis
points or more for the next period.
-- $99.00 - $100.99: No change in the dividend rate is anticipated.
However, management may use its discretion to recommend a minor
increase or decrease of 25 basis points depending on prevailing
market and capital conditions.
-- $101.00 and above: Recommend a dividend rate decrease of 25
basis points, or a larger decrease if one-month term SOFR interest
rates declined during that month (in each case, subject to the cap
on rate reductions described in the Prospectus and Certificate of
Designations for the STRC Stock), and/or a follow-on offering of
STRC Stock. All recommended dividend rate changes under this
framework are subject to approval by the Company's Board of
Directors, and dividends will only be declared and paid when, as,
and if the Board determines such changes are in the best interest
of the Company and its stockholders. Recommendations may be
adjusted to reflect prevailing market conditions at the time of
recommendation. This structured approach is intended to maintain
the trading price of STRC Stock near its $100 per share stated
amount. There can be no assurance that the recommended dividend
adjustments will achieve such intention. Strategy may change or
suspend this framework at any time in its sole discretion,
consistent with the terms of the STRC Stock.
ROC Dividend Guidance
For U.S. federal income tax purposes, 100% of distributions paid during calendar year 2025 on the Company's preferred equity instruments were treated as a nontaxable return of capital ("ROC") to the extent of a recipient shareholder's tax basis in their applicable preferred equity instruments, as reported on Forms 8937. Accordingly, such distributions are treated as a return of capital and reduce a shareholder's tax basis in the applicable preferred equity instruments, to the extent of that basis, with any excess treated as capital gain for U.S. federal income tax purposes.
Forms 8937 for each distribution can be obtained at https://www.strategy.com/investor-relations/dividend-return-of-capital.
Strategy believes that it does 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 ROC for the foreseeable future (i.e., ten years or more).
Special tax considerations may apply to certain taxpayers based on their specific circumstances. Shareholders should consult their own tax advisors regarding the U.S. federal, state, local, and any non-U.S. tax consequences to them in connection with the receipt of any of these distributions. Strategy's expectations on E&P may change, and any such change could affect the U.S. federal income tax treatment of the distributions.
Strategy Dashboard
Strategy maintains a dashboard on its website (www.strategy.com) as a disclosure channel for providing broad, non-exclusionary distribution of information regarding Strategy to the public, including information regarding market prices of its outstanding securities, bitcoin purchases and holdings, certain KPI metrics and other supplemental information, and as one means of disclosing non-public information in compliance with its disclosure obligations under Regulation FD. Investors and others are encouraged to regularly review the information that Strategy makes public via the website dashboard.
Conference Call
Strategy will be discussing its fourth quarter 2025 financial results on a live Video Webinar today beginning at approximately 5:00 p.m. ET. The live Video Webinar and accompanying presentation materials will be available under the "Events and Presentations" section of Strategy's investor relations website at https://www.strategy.com/investor-relations. Log-in instructions will be available after registering for the event. An archived replay of the event will be available beginning approximately two hours after the call concludes.
About Strategy
Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) is the world's first and largest Bitcoin Treasury Company. We pursue financial innovation strategies designed to generate value from our bitcoin holdings, including 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$(TM)$. 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.
Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of Strategy Inc in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
Important Information About KPIs
Bitcoin Per Share (BPS) is a key performance indicator ("KPI") that represents the ratio between the Company's bitcoin holdings and its Assumed Diluted Shares Outstanding, expressed in terms of Satoshis, where:
-- "Assumed Diluted Shares Outstanding" refers to the aggregate of our
Basic Shares Outstanding as of the dates presented plus all additional
shares that would result from the assumed conversion of all outstanding
convertible notes and convertible preferred stock, exercise of all
outstanding stock option awards, and settlement of all outstanding
restricted stock units and performance stock units as of such dates.
Assumed Diluted Shares Outstanding is not calculated using the treasury
method and does not take into account any vesting conditions (in the case
of equity awards), the exercise price of any stock option awards or any
contractual conditions limiting convertibility of convertible debt
instruments.
-- "Basic Shares Outstanding" reflects the actual class A common stock and
class B common stock outstanding as of the dates presented. For purposes
of this calculation, outstanding shares of such stock are deemed to
include shares, if any, that were sold under at-the-market equity
offering programs.
-- A "Satoshi" or a "Sat" is one one-hundred-millionth of one bitcoin, the
smallest indivisible unit of a bitcoin.
BTC Yield is a KPI that represents the percentage change in BPS from the beginning of a period to the end of a period.
BTC Gain is a KPI that represents the number of bitcoins held by the Company at the beginning of a period multiplied by the BTC Yield for such period.
BTC $ Gain is a KPI that represents the dollar value of the BTC Gain calculated by multiplying the BTC Gain by the market price of bitcoin. For determining BTC $ Gain QTD and YTD, unless otherwise specified, the Company uses the current market price of bitcoin. For determining BTC $ Gain for a past fiscal year or other past period, the Company uses the market price of bitcoin as of 4:00pm ET as reported on the Coinbase exchange on the last day of the applicable period. The Company uses these market prices of bitcoin for this calculation solely for the purpose of facilitating this illustrative calculation.
The Company uses BPS, BTC Yield, BTC Gain and BTC $ Gain as KPIs to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders. The Company believes these KPIs can supplement investors' understanding of how the Company chooses to fund bitcoin purchases and the value created in a period by:
-- in the case of BPS, measuring the ratio of the Company's bitcoin
holdings to the Assumed Diluted Shares Outstanding, which provides
investors a baseline with which to assess the Company's achievement of
its strategy of acquiring bitcoin in an accretive manner over a given
period;
-- in the case of BTC Yield, measuring the percentage change in BPS from
the beginning of a period to the end of a period, which helps investors
assess how the Company's achievement of its strategy of acquiring bitcoin
in an accretive manner varies across periods;
-- in the case of BTC Gain, hypothetically expressing the percentage
change reflected in the BTC Yield metric as if it reflected an increase
in the amount of bitcoin held at the end of the applicable period as
compared to the beginning of such period, which provides investors with
visibility into the absolute change in the Company's bitcoin holdings
resulting from its BTC Yield; and
-- in the case of BTC $ Gain, further expressing that change as an
illustrative dollar value by multiplying that bitcoin-denominated change
by the market price of bitcoin at the end of the applicable period as
described above; and
When the Company uses these KPIs, management takes into account the various limitations of these metrics, including that they
-- do not take into account that our assets, including our bitcoin, are
subject to (i) all of our existing and future liabilities, including our
debt, and (ii) the preferential rights of our preferred stockholders to
dividends and our assets in a liquidation, and that all such claims rank
to senior to those of our common equity; and
-- assume that all indebtedness will be refinanced or, in the case of the
Company's senior convertible debt instruments and convertible preferred
stock, converted into shares of common stock in accordance with their
respective terms.
BPS, BTC Yield, BTC Gain and BTC $ Gain are not, and should not be understood as, financial performance, valuation or liquidity measures. Specifically:
-- BPS does not represent (i) the ability of the Company to satisfy the
Company's financial obligations, or (ii) the Company's book value per
share. Ownership of a share of common stock of the Company does not
represent an ownership interest in the bitcoin held by the Company.
-- BTC Yield is not equivalent to "yield" in the traditional financial
context. It is not a measure of the return on investment the Company's
shareholders may have achieved historically or can achieve in the future
by purchasing stock of the Company, or a measure of income generated by
the Company's operations or its bitcoin holdings, return on investment on
its bitcoin holdings, or any other similar financial measure of the
performance of its business or assets.
-- BTC Gain and BTC $ Gain are not equivalent to "gain" in the traditional
financial context. They also are not measures of the return on investment
the Company's shareholders may have achieved historically or can achieve
in the future by purchasing stock of the Company, or measures of income
generated by the Company's operations or its bitcoin holdings, return on
investment on its bitcoin holdings, or any other similar financial
measure of the performance of its business or assets. It should also be
understood that BTC $ Gain does not represent a fair value gain of the
Company's bitcoin holdings, and BTC $ Gain may be positive during periods
when the Company has incurred fair value losses on its bitcoin holdings.
The trading price of the Company's class A common stock is informed by numerous factors in addition to Company's bitcoin holdings and its actual or potential shares of class A common stock outstanding, and as a result, the trading price of the Company's securities can deviate significantly from the market value of the Company's bitcoin, and none of BPS, BTC Yield, BTC Gain or BTC $ Gain are indicative or predictive of the trading price of the Company's securities.
Investors should rely on the financial statements and other disclosures contained in the Company's SEC filings. In particular, the Company has adopted Accounting Standards Update No. 2023-08, Intangibles--Goodwill and Other--Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"), which requires that the Company measure its bitcoin at fair value in its statement of financial position as of the end of a reported period, and recognize gains losses from changes in the fair value in net income (loss) for the reported period. As a result, we may incur unrealized gain or loss on digital assets based on changes in the market price of bitcoin during a period, which would not be reflected in BPS, BTC Yield, BTC Gain or BTC $ Gain. For example, if we increase our bitcoin holdings relative to our Assumed Diluted Shares Outstanding during a reported period, we would achieve increased BPS and positive BTC Yield, BTC Gain and BTC $ Gain even if we report significant unrealized loss on digital assets for the period. Similarly, if we increase our Assumed Diluted Shares Outstanding at a faster rate than our bitcoin holdings, then we would experience decreased BPS and negative BTC Yield, BTC Gain, and BTC $ Gain, even if we report significant unrealized gain on digital assets for the period.
As noted above, these KPIs are narrow in their purpose and are used by management to assist it in assessing whether the Company is raising and deploying capital in a manner accretive to shareholders solely as it pertains to its bitcoin holdings.
In calculating these KPIs, the Company does not consider the source of capital used for the acquisition of its bitcoin. When the Company purchases bitcoin using proceeds from offerings of non-convertible notes or non-convertible preferred stock, or convertible notes or preferred stock that carry conversion prices above the current trading price of the Company's common stock or conversion rights that are not then exercisable, such transactions have the effect of increasing the BPS, BTC Yield, BTC Gain and BTC $ Gain, while also increasing the Company's indebtedness and senior claims of holders of instruments other than class A common stock with respect to dividends and to the Company's assets, including its bitcoin, in a manner that is not reflected in these metrics.
If any of the Company's convertible notes mature or are redeemed without being converted into common stock, or if the Company elects to redeem or repurchase its non-convertible instruments, the Company may be required to sell shares of its class A common stock or bitcoin to generate sufficient cash proceeds to satisfy those obligations, either of which would have the effect of decreasing BPS, BTC Yield, BTC Gain and BTC $ Gain, and adjustments for such decreases are not contemplated by the assumptions made in calculating these metrics. Accordingly, these metrics might overstate or understate the accretive nature of the Company's use of capital to buy bitcoin because not all bitcoin is purchased using proceeds of issuances of class A common stock, and not all proceeds from issuances of class A common stock are used to purchase bitcoin.
In addition, we are required to pay dividends with respect to our perpetual preferred stock in perpetuity. We could pay these dividends with cash or, in the case of STRK Stock, by issuing shares of class A common stock. We have issued shares of class A common stock for cash to fund the payment of cash dividends, and we may in the future issue shares of class A common stock in lieu of paying dividends on STRK Stock. As a result, we have experienced, and may experience in the future, increases in Assumed Diluted Shares Outstanding without corresponding increases in our bitcoin holdings, resulting in decreases in BPS, BTC Yield, BTC Gain and BTC $ Gain for the periods in which such issuance of shares of class A common stock occurred.
The Company has historically not paid any dividends on its shares of class A common stock, and by presenting these KPIs the Company makes no suggestion that it intends to do so in the future. Ownership of the Company's securities, including its class A common stock and preferred stock, does not represent an ownership interest in, or a redemption right with respect to, the bitcoin the Company holds.
The Company determines its KPI targets based on its history and future goals. The Company's ability to maintain any given level of BPS, or achieve positive BTC Yield, BTC Gain, or BTC $ Gain may depend on a variety of factors, including factors outside of its control, such as the price of bitcoin, and the availability of debt and equity financing on favorable terms. Past performance is not indicative of future results.
These KPIs are merely supplements, not substitutes to the financial statements and other disclosures contained in the Company's SEC filings. They should be used only by sophisticated investors who understand their limited purpose and many limitations.
Forward-Looking Statements
This press release may include statements that may constitute "forward-looking statements," including estimates of future business prospects or financial results, including statements regarding the recommendations that will be made to adjust dividend rates for our STRC Stock, statements relating to our expectation regarding the tax-deferred return of capital treatment of distributions on our preferred stock, and statements containing the words "believe," "estimate," "project," "expect," "will," or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of Strategy Inc and its subsidiaries (Company) to differ materially from the forward-looking statements. Factors that could contribute to such differences include: fluctuations in the market price of bitcoin and any associated unrealized gains or losses on digital assets that the Company may record in its financial statements as a result of a change in the market price of bitcoin from the value at which the Company's bitcoins are carried on its balance sheet; the availability of debt and equity financing on favorable terms; gains or losses on any sales of bitcoins; changes in the accounting treatment relating to the Company's bitcoin holdings; changes in securities laws or other laws or regulations, or the adoption of new laws or regulations, relating to bitcoin that adversely affect the price of bitcoin or the Company's ability to transact in or own bitcoin; changes in the Company's tax earnings & profits that may impact return of capital tax treatment on future dividends on the Company's preferred stock; the impact of the availability of spot exchange traded products and other investment vehicles for bitcoin and other digital assets; a decrease in liquidity in the markets in which bitcoin is traded; security breaches, cyberattacks, unauthorized access, loss of private keys, fraud or other circumstances or events that result in the loss of the Company's bitcoins; impacts to the price and rate of adoption of bitcoin associated with financial difficulties and bankruptcies of various participants in the digital asset industry; the level and terms of the Company's substantial indebtedness and its ability to service such debt; the extent and timing of market acceptance of the Company's new product offerings; continued acceptance of the Company's other products in the marketplace; the Company's ability to recognize revenue or deferred revenue through delivery of products or satisfactory performance of services; the timing of significant orders; delays in or the inability of the Company to develop or ship new products; customers continuing to shift from a product license model to a cloud subscription model, which may delay the Company's ability to recognize revenue; fluctuations in tax benefits or provisions; changes in the market price of bitcoin as of period-end and their effect on our deferred tax assets, related valuation allowance, and tax expense; other potentially adverse tax consequences; competitive factors; general economic conditions, including levels of inflation and interest rates; currency fluctuations; and other risks detailed in the Company's registration statements and periodic and current reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this release.
STRATEGY INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ----------------------------
2025 2024 2025 2024*
----------- ---------- ---------- --------------
(unaudited) (unaudited) (unaudited)
Revenues:
Product licenses $ 7,854 $ 15,256 $ 39,674 $ 48,567
Subscription
services 51,758 31,931 175,657 106,776
----------- ---------- ---------- ----------
Total product
licenses and
subscription
services 59,612 47,187 215,331 155,343
Product support 48,498 58,364 204,225 243,805
Other services 14,879 15,146 57,677 64,308
----------- ---------- ---------- ----------
Total revenues 122,989 120,697 477,233 463,456
----------- ---------- ---------- ----------
Cost of revenues:
Product licenses 1,191 930 3,956 3,060
Subscription
services 23,028 12,822 72,956 42,440
----------- ---------- ---------- ----------
Total product
licenses and
subscription
services 24,219 13,752 76,912 45,500
Product support 6,790 7,977 28,592 33,289
Other services 10,675 12,439 43,913 50,679
----------- ---------- ---------- ----------
Total cost of
revenues 41,684 34,168 149,417 129,468
----------- ---------- ---------- ----------
Gross profit 81,305 86,529 327,816 333,988
----------- ---------- ---------- ----------
Operating
expenses:
Sales and
marketing 31,825 34,965 122,956 138,081
Research and
development 22,763 25,691 93,860 118,486
General and
administrative 36,690 36,239 151,909 140,537
Unrealized loss
on digital
assets, net 17,435,832 -- 5,403,476 --
Digital asset
impairment
losses -- 1,006,055 -- 1,789,862
----------- ---------- ---------- ----------
Total
operating
expenses 17,527,110 1,102,950 5,772,201 2,186,966
----------- ---------- ---------- ----------
Loss from
operations (17,445,805) (1,016,421) (5,444,385) (1,852,978)
----------- ---------- ---------- ----------
Interest
expense, net (11,075) (16,465) (64,968) (61,941)
Loss on debt
extinguishment -- -- -- (22,933)
Other (expense)
income, net (3,678) 6,150 (16,601) 3,506
Loss before income
taxes (17,460,558) (1,026,736) (5,525,954) (1,934,346)
----------- ---------- ---------- ----------
Benefit from
income taxes (5,023,906) (355,925) (1,677,802) (767,685)
----------- ---------- ---------- ----------
Net loss (12,436,652) (670,811) (3,848,152) (1,166,661)
----------- ---------- ---------- ----------
Dividends on
preferred
stock (183,328) -- (381,368) --
----------- ---------- ---------- ----------
Net loss
attributable to
common
stockholders of
Strategy $(12,619,980) $ (670,811) $(4,229,520) $(1,166,661)
=========== ========== ========== ==========
Basic loss per
share (1) $ (42.93) $ (3.03) $ (15.23) $ (6.06)
=========== ========== ========== ==========
Weighted average
common shares
outstanding -
Basic 293,998 221,608 277,660 192,549
=========== ========== ========== ==========
Diluted loss per
share (1) $ (42.93) $ (3.03) $ (15.23) $ (6.06)
=========== ========== ========== ==========
Weighted average
common shares
outstanding -
Diluted 293,998 221,608 277,660 192,549
=========== ========== ========== ==========
(1) Basic and fully diluted loss per common share for class A and class B
common stock are the same.
* Derived from audited financial statements
STRATEGY INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31, December 31,
2025 2024*
--------------- --------------
(unaudited)
--------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 2,301,470 $ 38,117
Restricted cash 1,873 1,780
Accounts receivable, net 205,748 181,203
Prepaid expenses and other current
assets 55,046 31,224
---------- ----------
Total current assets 2,564,137 252,324
Digital assets 58,854,028 23,909,373
Property and equipment, net 28,858 26,327
Right-of-use assets 46,975 54,560
Deposits and other assets 142,577 75,794
Deferred tax assets, net 4,507 1,525,307
---------- ----------
Total assets $ 61,641,082 $25,843,685
========== ==========
Liabilities, Mezzanine Equity, and
Stockholders' Equity
Current liabilities:
Accounts payable, accrued expenses,
and operating lease liabilities $ 50,335 $ 52,982
Accrued compensation and employee
benefits 69,986 58,362
Accrued interest 5,619 5,549
Preferred Dividends Payable 27,121 --
Current portion of long-term debt,
net 31,313 517
Deferred revenue and advance
payments 272,118 237,974
---------- ----------
Total current liabilities 456,492 355,384
Long-term debt, net 8,158,842 7,191,158
Deferred revenue and advance payments 5,451 4,970
Operating lease liabilities 46,135 56,403
Other long-term liabilities 4,736 5,379
Deferred tax liabilities 1,926,454 407
---------- ----------
Total liabilities 10,598,110 7,613,701
---------- ----------
Commitments and Contingencies
Mezzanine Equity
10.00% Series A Perpetual Strife
Preferred Stock, $0.001 par value;
33,200 shares authorized, 12,840
shares issued and outstanding at
December 31, 2025; redemption value
and liquidation preference of
$1,363,151 at December 31, 2025 1,191,128 --
Variable Rate Series A Perpetual
Stretch Preferred Stock, $0.001 par
value; 70,435 shares authorized,
29,587 shares issued and outstanding
at December 31, 2025; redemption
value and liquidation preference of
$2,958,706 at December 31, 2025 2,631,281 --
8.00% Series A Perpetual Strike
Preferred Stock, $0.001 par value;
269,800 shares authorized, 13,982
shares issued and outstanding at
December 31, 2025; redemption value
and liquidation preference of
$1,398,195 at December 31, 2025 1,226,553 --
10.00% Series A Perpetual Stride
Preferred Stock, $0.001 par value;
61,176 shares authorized, 14,024
shares issued and outstanding at
December 31, 2025; redemption value
and liquidation preference of
$1,402,422 at December 31, 2025 1,163,483 --
10.00% Series A Perpetual Stream
Preferred Stock, $0.001 par value;
7,750 shares authorized, 7,750 shares
issued and outstanding at December
31, 2025; redemption value and
liquidation preference of $909,850 at
December 31, 2025 707,069 --
---------- ----------
Total mezzanine equity 6,919,514 --
---------- ----------
Stockholders' Equity
Preferred stock undesignated, $0.001
par value; 562,639 and 5,000 shares
authorized, no shares issued and
outstanding at December 31, 2025 and
December 31, 2024, respectively -- --
Class A common stock, $0.001 par
value; 10,330,000 and 330,000 shares
authorized, 292,422 and 226,138
shares issued and outstanding at
December 31, 2025 and December 31,
2024, respectively 292 226
Class B common stock, $0.001 par
value; 165,000 and shares
authorized, 19,640 shares issued and
outstanding at December 31, 2025 and
December 31, 2024, respectively 20 20
Additional paid-in capital 37,806,554 20,411,998
Accumulated other comprehensive loss (5,171) (15,384)
Retained earnings (accumulated
deficit) 6,321,763 (2,166,876)
---------- ----------
Total stockholders' equity 44,123,458 18,229,984
---------- ----------
Total liabilities, mezzanine
equity, and stockholders'
equity $ 61,641,082 $25,843,685
========== ==========
* Derived from audited financial statements
STRATEGY INC
DIGITAL ASSETS -- ADDITIONAL INFORMATION
ROLLFORWARD OF BITCOIN HOLDINGS
(unaudited)
Source of Approximate
Capital Digital Asset Approximate Average
Used to Original Cost Digital Asset Digital Asset Number of Purchase
Purchase Basis (in Impairment Losses Carrying Value Bitcoins Price Per
Bitcoin thousands) (in thousands) (in thousands) Held Bitcoin
--------- --------------- ------------------ ---------------- ----------- -------------
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 $ -- $ 41,790,421 447,470 $ 62,503
Digital asset
purchases (a) 7,661,663 n/a 7,661,663 80,715 94,922
Unrealized loss on digital
assets n/a (5,906,005)
--------------- ---------- ----------- ----------- -------------
Balance at March 31, 2025 $ 35,629,911 n/a $ 43,546,079 528,185 $ 67,457
Digital asset
purchases (b) 6,769,205 n/a 6,769,205 69,140 97,906
Unrealized gain on digital
assets n/a 14,047,514
--------------- ---------- ----------- ----------- -------------
Balance at June 30, 2025 $ 42,399,116 n/a $ 64,362,798 597,325 $ 70,982
Digital asset
purchases (c) 4,952,080 n/a 4,952,080 42,706 115,959
Unrealized gain on digital
assets n/a 3,890,847
--------------- ---------- ----------- ----------- -------------
Balance at September 30, 2025 $ 47,351,196 n/a $ 73,205,725 640,031 $ 73,983
Digital asset
purchases (d) 3,084,135 n/a 3,084,135 32,469 94,986
Unrealized gain on digital
assets n/a (17,435,832)
--------------- ---------- ----------- ----------- -------------
Balance at December 31, 2025 $ 50,435,331 n/a $ 58,854,028 672,500 $ 74,997
============== ========== =========== =========== =========
(a) In the first quarter of 2025, we purchased bitcoin using $4.37 billion
of the net proceeds from sales under our class A common stock
at-the-market offering program then-in effect, $1.99 billion of the net
proceeds from our issuance of our 0% Convertible Senior Notes due 2030,
$593.7 million of the aggregate net proceeds from the initial public
offering of our 8.00% Series A Perpetual Strike Preferred Stock, $0.001
par value per share ("STRK Stock") and sales under our STRK Stock
at-the-market offering program, and $710.0 million of the net proceeds
from the initial public offering of 10.00% Series A Perpetual Strife
Preferred Stock, $0.001 par value per share ("STRF Stock").
(b) In the second quarter of 2025, we purchased bitcoin using $5.19 billion
of the net proceeds from sales under our class A common stock
at-the-market offering programs then-in effect, $979.7 million of the
net proceeds from our initial public offering of 10.00% Series A
Perpetual Stride Preferred Stock, $0.001 par value per share ("STRD
Stock"), $163.0 million of the net proceeds from sales under the STRF
Stock at-the-market offering program, and $438.0 million of the net
proceeds from sales under the STRK Stock at-the-market offering
program.
(c) In the third quarter of 2025, we purchased bitcoin using $209.5 million
of the net proceeds from the STRF Stock at-the-market offering program,
$153.0 million of the net proceeds from the STRK Stock at-the-market
offering program, $48.5 million of the net proceeds from the STRD Stock
at-the-market offering program, $2.07 billion of the net proceeds from
the class A common stock at-the-market offering program, and $2.47
billion of the net proceeds from the initial public offering of our
Variable Rate Series A Perpetual Stretch Preferred Stock, $0.001 par
value per share.
(d) In the fourth quarter of 2025, the Company purchased bitcoin using
$99.4 million of the net proceeds from the STRF ATM, $157.9 million of
the net proceeds from the STRC ATM, $33.7 million of the net proceeds
from the STRK ATM, $135.7 million of the net proceeds from the STRD
ATM, $699.0 million of the net proceeds from the initial public
offering of STRE Stock and $1.96 billion of net proceeds from the MSTR
ATM.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260205284207/en/
CONTACT: Strategy
Shirish Jajodia
Corporate Treasurer
ir@strategy.com
(END) Dow Jones Newswires
February 05, 2026 16:00 ET (21:00 GMT)