Strategy Q2 FY26 earnings call MSTR

Strategy Inc holds 843,775 Bitcoin, representing approximately 4% of all Bitcoin, with a reserve value of $55 billion and an average purchase price of $75,000. The company aims to increase Bitcoin per share and is the largest institutional holder globally, leading institutional Bitcoin adoption as an operating company with access to capital markets and a digital credit platform. Analyst Bitcoin price targets average $98,000, with MSTR price targets averaging $296.

The company has shifted to active capital management, using common equity, preferreds (STRC), and convertible debt to buy Bitcoin, manage debt, and fund dividends. Year-to-date 2026, Strategy Inc bought 174,895 Bitcoin and sold 3,620 Bitcoin, issuing $7.52 billion of digital credit. Capital issued year-to-date 2026 is $17 billion, with digital credit comprising 44% of total capital issued, up from 28% in 2025.

The corporate objective is for STRC to trade at $99-$100. Five pillars to strengthen STRC include maintaining a robust USD reserve ($3.75 billion, 2.1 years coverage), Bitcoin monetization for reserves, dividends, and repurchases, and authorized buybacks of up to $1 billion for both STRC and MSTR. The company is committed to keeping the STRC dividend rate at 12%.

The company clarified its Bitcoin monetization strategy, selling small amounts (0.004% and 0.4% of holdings) to fund USD reserves and dividends. Analysis suggests these sales had minimal impact on Bitcoin price due to high liquidity, with Strategy Inc being a very small participant in selling volume (0.001% and 0.104% of liquidity for the two sales). The company has $18.5 billion in unrealized Bitcoin losses, equating to a potential $5.4 billion tax benefit.

STRC is positioned as a high-yield digital credit product, currently the #1 holding in three major preferred credit indexes. The company aims to return STRC to par, viewing it as a $1 trillion opportunity, and believes its digital credit business is significantly undervalued by the market, with the MSTR price implying a near zero value for the operating business. The discussion around selling volatility (e.g., warrants at $150-$350 strike prices) highlights the company's focus on simplicity and not fragmenting liquidity.

MSTR is built to outperform Bitcoin over the long term^⏳, with historical data showing 100% outperformance for 4-year holding periods or longer. Bitcoin has appreciated 33% annually over the past 6 years, while MSTR is up 42%. The company's franchise relies on its capital stack, technology advantage, strong brand, and network effects to achieve its ambition of becoming the world's most valuable company by owning the most capital and issuing the strongest credit. The total addressable market for capital is estimated at $1,000 trillion, with Bitcoin currently representing 0.1% of that.

The company learned the importance of holding liquid USD reserves and avoiding restrictive secured debt or margin calls, upgrading its capital structure since 2022. It now aims for a more balanced approach between USD and BTC holdings, moving away from a historical 98-99% BTC allocation. Management will actively manage the mix based on market sentiment and Bitcoin's position in its cycle (e.g., premium to 200-week moving average), being more countercyclical at high premiums. The historical STRC price flexed $0.40 in the past, and the company is committed to not selling STRC below par, even by $0.01, to maintain product integrity.