Strategy (MSTR) investor relations material

Executive summary

• Bitcoin holdings increased to 846,000 as of July 26, 2026, representing 4% of all Bitcoin, with a reserve value of $55B and market cap of $38B.

• Year-to-date, $17.06B of capital was raised, primarily to acquire Bitcoin and support digital credit growth.

• STRC digital credit issuance surged, with notional value up 254% YTD and robust institutional and retail demand.

• Balance sheet strengthened by reducing convertible debt by 18% to $6.7B and increasing USD reserves by 12% to $2.4B.

• New KPIs introduced for enhanced transparency, including BTC Hurdle ARR and Net Bitcoin Per Share.

Financial highlights

• Q2 2026 operating loss was $8.3B, net loss $8.22B, and EPS of -$24.45, driven by non-cash fair value loss on Bitcoin holdings.

• Net 83,901 Bitcoin acquired in Q2 at an average price of $75,500; quarter-end holdings at 846,000 Bitcoin.

• Q2 unrealized fair value loss of $8.3B reversed post-quarter as Bitcoin price rebounded, resulting in a $5.2B gain quarter-to-date.

• Cash and short-term investments rose to $2.4B at Q2 end, now $3.75B.

• Total revenues rose 6.9% YoY to $122.4M; gross profit was $81.6M (66.6% margin).

Outlook and guidance

• Focus remains on increasing Bitcoin per share, strengthening digital credit, and maintaining robust USD reserves.

• Management aims to double Bitcoin per share in seven years through digital credit growth and sales equal to 10-20% of BTC reserves annually.

• STRC dividend rate increased to 12% to support trading near par, with plans to maintain until healthy trading is achieved.

• Expects preferred equity distributions to be treated as non-taxable return of capital for at least ten years.

• Analyst coverage expanded to 16, with average Bitcoin price target of $98,000 and MSTR price target of $296, all with buy ratings.