Strategy (MSTR) Q2 2026 earnings summary

Executive summary

• Bitcoin holdings increased to 846,000 by June 30, 2026, representing about 4% of all Bitcoin, with a reserve value of $49.67B and market cap of $38B, making it the largest institutional holder globally.

• Year-to-date, $17.06B in capital was raised, primarily to acquire Bitcoin and support digital credit growth, with digital credit notional value nearly doubling in Q2 2026.

• The company realigned reporting into Software and Bitcoin segments, with software revenues up 7% YoY to $122.4M in Q2 2026.

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

• Introduced new KPIs (BTC Hurdle ARR, Net Bitcoin Per Share) for enhanced transparency.

Financial highlights

• Q2 2026 operating loss was $8.33B, net loss $8.22B, and EPS of -$24.45, driven by $8.32B in unrealized losses on Bitcoin.

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

• Cash and short-term investments were $2.45B at Q2 end, with USD Reserve at $2.4B, covering at least 16 months of preferred dividends and interest.

• Long-term debt reduced from $8.2B to $6.7B; preferred equity increased to $14.4B.

• Q2 unrealized fair value loss of $8.3B reversed post-quarter with a $5.2B gain as Bitcoin price rebounded.

Outlook and guidance

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

• Objective to double Bitcoin Per Share in 7 years through digital credit sales equal to 10-20% of BTC reserves annually.

• STRC targeted to trade at $99-$100, with a 12% annualized dividend rate maintained until recovery.

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

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