Strategy Inc

Strategy Inc is the world's first and largest Bitcoin Treasury Company, pursuing financial innovation strategies designed to generate value from its bitcoin holdings, including by developing and issuing novel fixed-income instruments that provide investors varying degrees of economic exposure to bitcoin. The company is also an industry leader in AI-powered enterprise analytics software, advancing its vision of Intelligence Everywhere. The Bitcoin protocol limits the total supply of bitcoin to 21 million, and as of February 13, 2026, approximately 20.0 million bitcoins had been mined. The Securities and Exchange Commission approved the first U.S. spot bitcoin exchange-traded products in January 2024, and as of December 31, 2025, U.S. spot bitcoin ETPs have accumulated over 1.3 million bitcoins since approval. The industry is subject to evolving and uncertain regulatory requirements, with the CFTC taking the position that Bitcoin is a commodity and the SEC not considering bitcoin to be a security.

Strategy is the largest corporate holder of bitcoin globally. The company competes for capital with ETPs, bitcoin miners, digital assets exchanges, other digital assets service providers, other companies that hold bitcoin or other digital assets as treasury reserve assets, private funds that invest in bitcoin and other digital assets, traditional financial firms that have entered the digital assets market, and other entities that pursue strategies to accumulate or gain exposure to bitcoin or other digital assets. For enterprise analytics, Strategy competes with global ISVs such as IBM, Microsoft, Oracle, Salesforce, and SAP. Competitive advantages include being the first and largest Bitcoin Treasury Company, a scaled operating software business, and a cloud-native analytics platform with AI capabilities.

The company generates revenue through two primary business models: a bitcoin treasury operation and an enterprise analytics software business. The bitcoin treasury operation involves acquiring and holding bitcoin as a primary treasury reserve asset, funded primarily through proceeds from offerings of class A common stock and various preferred stock instruments. The enterprise analytics software business generates revenue from product licenses, subscription services, product support, and other services. The company offers its analytics platform in the form of an on-premises product license or a cloud subscription, with subscriptions typically for 36 months. The company does not generate positive cash flow from its software operations to satisfy financial obligations.

Strategy's bitcoin treasury operations include capital markets management, bitcoin acquisition processes, capital and liability management, structuring digital credit, digital credit management, and custody and risk management. The company has structured and issued five classes of Preferred Stock instruments: 10.00% Series A Perpetual Strife Preferred Stock (STRF Stock), Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock), 10.00% Series A Perpetual Stream Preferred Stock (STRE Stock), 8.00% Series A Perpetual Strike Preferred Stock (STRK Stock), and 10.00% Series A Perpetual Stride Preferred Stock (STRD Stock). STRF Stock is designed for income-focused investors with lower risk tolerance, STRC Stock for income-focused investors seeking short duration, STRE Stock for income-focused investors seeking Euro-denominated yields, STRK Stock for investors seeking yield with greater potential for price appreciation, and STRD Stock for investors seeking higher yields. The company's enterprise analytics software portfolio includes Strategy One, a cloud-native analytics platform delivering visualization, reporting, and embedded analytics, and Strategy Mosaic, a universal data layer. Key capabilities include Auto, an AI assistant, HyperIntelligence for click-free insights, and an Enterprise Semantic Graph. The company's cloud solution for government is authorized to operate under FedRAMP guidelines.

During the fiscal year ended December 31, 2025, the company completed five initial public offerings of Preferred Stock: 8,500,000 shares of STRF Stock on March 25, 2025 for net proceeds of $710.9 million ¹; 28,011,111 shares of STRC Stock on July 29, 2025 for net proceeds of $2,473.8 million ²; 7,750,000 shares of STRE Stock on November 13, 2025 for net proceeds of €608.7 million ³; 7,300,000 shares of STRK Stock on February 5, 2025 for net proceeds of $563.2 million ⁴; and 11,764,700 shares of STRD Stock on June 10, 2025 for net proceeds of $979.5 million ⁵. The company also received net proceeds of approximately $1.98 billion ⁶ from the issuance of the 2030B Convertible Notes. In December 2025, the company established a USD Reserve to support the payment of dividends on its preferred stock and interest on its outstanding indebtedness, with a balance of $2.25 billion ⁷ as of February 13, 2026. The company entered into the Omnibus Sales Agreement on November 4, 2025, consolidating previous ATMs. As of February 13, 2026, the company may issue and sell up to $1.6 billion ⁸ of STRF Stock, $3.5 billion ⁹ of STRC Stock, $20.3 billion ¹⁰ of STRK Stock, $4.0 billion ¹¹ of STRD Stock, and $7.9 billion ¹² of class A common stock under the Omnibus Sales Agreement. The company also announced a capital plan in May 2025 to raise $84 billion ¹³ in the medium-to-long term, including $42 billion ¹⁴ of equity capital and $42 billion ¹⁵ of fixed-income instruments.

Total revenues for the fiscal year ended December 31, 2025 were $477.233 million ¹⁶, compared to $463.456 million ¹⁷ in fiscal 2024, representing a 3.0% increase. Net loss was $3.848 billion ¹⁸ for fiscal 2025, compared to a net loss of $1.167 billion ¹⁹ in fiscal 2024. Diluted loss per share was $15.23 ²⁰ in fiscal 2025 versus $6.06 ²¹ in the prior year. The company incurred an unrealized loss on digital assets of $5.403 billion ²² for fiscal 2025. Gross profit was $327.816 million ²³ in fiscal 2025, compared to $333.988 million ²⁴ in fiscal 2024. Loss from operations was $5.444 billion ²⁵ in fiscal 2025 versus $1.853 billion ²⁶ in fiscal 2024. Net cash used in operating activities was $67.241 million ²⁷ in fiscal 2025, compared to $53.032 million ²⁸ in fiscal 2024.

A primary growth vector is the continued accumulation of bitcoin through capital markets activity. The company's capital plan announced in May 2025 targets raising $84 billion ²⁹ in the medium-to-long term, including $42 billion ³⁰ of equity capital and $42 billion ³¹ of fixed-income instruments. The company intends to fund bitcoin purchases primarily from proceeds of offerings of class A common stock and various preferred stock instruments. The company also evaluates other potential financial innovation opportunities, including additional financing structures and strategies intended to generate income streams or otherwise generate funds using its bitcoin holdings. The company believes that continued maturation of market infrastructure and broader adoption by individuals, institutions, and governments could support long-term demand for bitcoin.

Another growth vector is the enterprise analytics software business, specifically the transition to cloud subscriptions. The company experienced growth in cloud subscription services revenue of $68.9 million ³² in fiscal 2025, partially offset by declines in product license revenue and related product support revenue of $48.5 million ³³ in the aggregate. The company continues to integrate AI capabilities into its product offerings, including generative AI capabilities designed to automate and accelerate the deployment of AI-enabled applications. The company's cloud solution for government is authorized to operate under FedRAMP guidelines, which certifies compliance with essential cloud security and data protection standards set by the U.S. Federal government.

The company's operating expense budgets are based on expected revenue trends and strategic objectives, with many expenses such as dividend obligations on outstanding Preferred Stock, interest expense on debt, tax liabilities, office leases, and certain personnel costs being relatively fixed in the short term. The company does not expect the cash generated by its software operations to be sufficient to cover such expenses. The company expects to use cash proceeds from sales of class A common stock under its ATM, cash held in the USD Reserve, and cash proceeds from additional equity or debt financings to pay its expenses and satisfy liquidity needs. The company's ability to obtain equity or debt financing may depend on the value of its bitcoin holdings, investor sentiment, and the general public perception of bitcoin.

The company's supply chain posture is not discussed in detail, but it relies on third-party data center hosting facilities and other third-party services including AWS, Azure, Google, and other cloud services. The company has a significant portion of its research and development activities concentrated in facilities in Northern Virginia, China, Argentina, and Poland. The company's technology infrastructure investments include its cloud-native, containerized architecture optimized for AWS, Azure, and GCP. As of December 31, 2025, the company had a total of 1,539 employees ³⁴, of whom 448 were based in the United States and 1,091 were based internationally.

The company's capital allocation strategy includes R&D spending, capital expenditures, share repurchases, and dividends. Research and development expenses were $93.860 million ³⁵ for fiscal 2025. Capital expenditures for property and equipment were $8.212 million ³⁶ in fiscal 2025. The company has not declared or paid any cash dividends on its class A or class B common stock and has no current plans to do so. Dividends on Preferred Stock are payable when, as and if declared by the board of directors. The company paid aggregate dividends of $381.367 million ³⁷ on its Preferred Stock during fiscal 2025. The company has ATM capacities available for future issuances: $1.6 billion ³⁸ of STRF Stock, $3.5 billion ³⁹ of STRC Stock, $20.3 billion ⁴⁰ of STRK Stock, $4.0 billion ⁴¹ of STRD Stock, and $7.9 billion ⁴² of class A common stock as of February 13, 2026.

A significant headwind is the volatility of bitcoin. The price of bitcoin has traded below $65,000 per bitcoin and above $120,000 per bitcoin on the Coinbase exchange in the 12 months preceding the date of the filing. A significant decrease in the fair market value of bitcoin holdings could adversely affect the company's ability to satisfy its financial obligations or liquidity needs. As of December 31, 2025, the company had outstanding indebtedness of $8.25 billion ⁴³ and annual contractual interest expense of $36.2 million ⁴⁴. As of February 13, 2026, the company had outstanding $8.47 billion ⁴⁵ aggregate notional value of Preferred Stock. The company's enterprise analytics software business did not generate positive cash flow from operations for fiscal 2025, and the company does not expect it to generate sufficient cash flow from operations to satisfy financial obligations or liquidity needs over the next twelve months.

Regulatory and tax developments represent a key constraint. The company is subject to evolving and uncertain regulatory requirements for digital assets. The U.S. enacted the One Big Beautiful Bill Act of 2025, which includes changes to corporate taxation. The Inflation Reduction Act of 2022 imposes a 15% corporate alternative minimum tax, though the company plans to exclude unrealized gains and losses on its bitcoin holdings from the calculation of AFSI for CAMT purposes pursuant to interim guidance. The company has deferred tax liabilities with respect to the unrealized gain on its bitcoin holdings of approximately $2.42 billion ⁴⁶ as of December 31, 2025. If the fair market value of bitcoin declines, the company may be required to establish additional valuation allowances against its deferred tax assets.

The company's bitcoin strategy exposes it to significant risks, including the high volatility of bitcoin, which has traded below $65,000 and above $120,000 per bitcoin in the 12 months preceding the filing. A significant decrease in the fair market value of the company's bitcoin holdings, which totaled $58.854 billion ⁴⁷ as of December 31, 2025, could adversely affect its ability to satisfy financial obligations or liquidity needs. The company had outstanding indebtedness of $8.25 billion ⁴⁸ and annual contractual interest expense of $36.2 million ⁴⁹ as of December 31, 2025, and outstanding $8.47 billion ⁵⁰ aggregate notional value of Preferred Stock as of February 13, 2026. The company's enterprise analytics software business did not generate positive cash flow from operations for fiscal 2025, and the company does not expect it to generate sufficient cash flow to satisfy financial obligations over the next twelve months. The company relies substantially on the availability of equity and debt capital markets to fund its preferred stock dividend obligations, interest expense, and other financial obligations. The company's ability to obtain equity or debt financing may depend on the value of its bitcoin holdings, investor sentiment, and the general public perception of bitcoin. The company faces risks related to the custody of its bitcoin, including potential loss or destruction of private keys, cyberattacks, and the possibility that custodially-held bitcoin could be considered part of a custodian's bankruptcy estate. The company's bitcoin holdings are concentrated, with approximately 717,131 bitcoins held as of February 13, 2026, acquired at an aggregate purchase price of $54.5 billion ⁵¹ and an average purchase price of approximately $76,027 ⁵² per bitcoin. The company is subject to a putative class action lawsuit related to the STRK Stock certificate of designations.

Management's message emphasizes the company's position as the world's first and largest Bitcoin Treasury Company, pursuing financial innovation strategies designed to generate value from bitcoin holdings. The company changed its name from MicroStrategy Incorporated to Strategy Inc on August 11, 2025. Management highlights the combination of active bitcoin-focused capital management and a scaled operating software business as positioning the company for long-term value creation across both digital asset and enterprise analytics markets. Key strategic priorities include continuing to accumulate bitcoin in a manner accretive to shareholders, developing and issuing novel digital credit instruments, and advancing the enterprise analytics software business with AI-powered solutions. Management evaluates the bitcoin strategy on an ongoing basis in light of market conditions, capital structure, contractual obligations, and anticipated operating needs for cash resources. The company intends for its bitcoin strategy to remain adaptable.