Strategy (MSTR) Q2 FY26 earnings call: guidance and Q&A

Would Strategy Inc consider borrowing against Bitcoin holdings from a bank to increase USD reserves and drive STRC to par, given the importance of USD reserves to retail investors?

Management stated this is not currently on the table. They prefer more straightforward ways to build USD reserves without creating counterparty risks or "attack surfaces" for short sellers, and they aim to progressively reduce existing debt.

“So I think the short answer of it, it's not on the table right now. The company has the option, right, in the future, if we ever needed to use Bitcoin, but we think that right now, it's -- it would be more complicated than it's worth.”

asked by Mark Palmer · answered by Michael Saylor

Are there more innovative capital instruments coming, or is the company consolidating? Also, why not sell volatility at the derivatives layer as another tool?

The company is consolidating its 11 credit instruments, focusing on STRC as the flagship. They are not looking to create new instruments. Regarding selling volatility, they believe it would undermine STRC, fragment liquidity, create tax complications, and compete with market participants who already provide these services. They prefer to create simple, liquid securities and let others build on top.

“My view is, yes, it is a good idea. So I leave it for someone else to do. And it's not that we're not selling the vol, we're selling the vol, right? We sold billions and billions of dollars of equity.”

asked by Matt Hogan · answered by Michael Saylor

How will Strategy Inc approach equitizing, repaying, or refinancing existing convertible debt, and what is the general timing for addressing upcoming maturities?

All options (equitize, repay, refinance) are available, and the company will be disciplined in choosing the right action at the right time, with no immediate rush. The next convertible debt put date is September of next year (2028 converts at $183 conversion price), and they expect to be above that price. If not, they have options like selling MSTR, selling Bitcoin, or refinancing, as current terms for new converts are favorable.

“I would say, Ramsey, the simple answer is that we have all of those options available to us, right? And so in terms of monitoring the market, being able to understand what the right action is at the right time. I think all of the options are open.”

asked by Ramsey El-Assal · answered by Andrew Kang

Does the marketing of STRC as "making Bitcoin money" conflict with the view of Bitcoin as an asset/property, and do these instruments squeeze out people from discovering "real bare Bitcoin"?

The company markets to the 99% who don't own Bitcoin, creating products for those who cannot or will not buy Bitcoin directly. They view Bitcoin as digital capital, and STRC as a credit instrument. While Bitcoin is money from an Austrian perspective, the broader market defines money as fiat-pegged. Digital credit aims to channel capital from the multi-hundred trillion fiat-based markets into the Bitcoin ecosystem, appealing to investors who need fiat-denominated, yield-bearing instruments.

“I think the thing to keep in mind is, our marketing is to the 99% of the people that don't own Bitcoin that don't want to buy it, right?”

asked by Samson Mow · answered by Michael Saylor

Would Strategy Inc consider raising the minimum USD reserve coverage from 12 months to 18 or 24 months to help STRC reach par?

They would consider it, but believe the commitment to a robust USD reserve (2-3 years coverage) and a steady repurchase program are more effective. A 1-year minimum is a good baseline, but the actual amount held is more important.

“I think we'd consider it, Nick. I think the best thing to get is to trade to par is our commitment to a U.S. dollar reserve and increasing the actual number, not necessarily increasing the minimum.”

asked by Nick Cremo · answered by Phong Le

Does the company have a target for overall amplification/leverage, and will it be more countercyclical in its capital issuance, leaning into or out of Bitcoin based on market conditions?

The company will actively manage the mix between USD and BTC, moving away from a 100% BTC allocation. They will use metrics like the premium to the 200-week moving average to guide decisions, being more countercyclical (more USD) at high premiums and more bullish on BTC at discounts. The goal is to find the "sweet spot" for strong credit and lower capital cost.

“I think you could expect that we're going to be staring at metrics like the premium to the 200 week moving average and I think that although in the past, we've had a 100% allocation to BTC. I don't think it will be the 100% in the future. I think it will be a mix...”

asked by Lyn Alden · answered by Michael Saylor

Under what circumstances would Strategy Inc reconsider its position of not issuing STRC below par, and how should investors distinguish foundational principles from contingent ones?

The principle of not issuing STRC below par is foundational because the market demands stability, liquidity, and trading at par for short-duration credit. Issuing below par would destroy the product's credibility and shrink its market. The company is committed to spending whatever is necessary to ensure STRC trades at par.

“I would not knock off $0.01, if you put $10 billion in front of my face because it's a matter of principal and credibility. If we can't create it such that the trades at par, and we can't sell it at par, we're not going to sell it at all.”

asked by Lance Vitanza · answered by Michael Saylor

What capital markets assumptions proved wrong in the last cycle, and can tokenized securities create new opportunities for Strategy Inc (e.g., tokenized STRC, stablecoin)?

In 2022, the company learned not to use secured debt with covenants or Bitcoin-backed loans with margin requirements. In 2026, they learned the importance of liquid USD reserves for preferred dividends. Tokenized securities, especially digital credit, are seen as a huge opportunity to create yield-bearing instruments (e.g., 6% stablecoins) that appeal to the broader TradFi market, leveraging DeFi's ability to engineer financial products.

“The biggest lesson so far for 2026 is the importance of holding liquid U.S. dollars to fund our dividend and to overfund our dividend until people have confidence in the preferred dividends.”

asked by James Straton · answered by Phong Le