Bitcoin Highlights (as of February 1, 2026)
- 713,502 bitcoin holdings at a total cost of $54.26 billion, or $76,052 per bitcoin
- 22.8% BTC Yield achieved in FY2025
Capital Markets Highlights
- Largest US equity issuer in FY2025, representing ~8% of total US equity issuance
- $25.3 billion raised in FY2025
- Five IPOs of preferred stock completed in FY2025, raising $5.5 billion of gross proceeds
Digital Credit Highlights (as of February 1, 2026)
- STRC scaled to an aggregate stated amount of $3.4 billion, with a current dividend rate of 11.25%
- $413 million in cumulative distributions paid, representing a blended annual dividend rate of 9.6%
- $2.25 billion USD Reserve established providing 2.5 years of dividend and interest coverage
- Return of Capital (“ROC”) distributions expected to continue for the foreseeable future, i.e., ten years or more
TYSONS CORNER, Va.--(BUSINESS WIRE)--Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) (“Strategy” or the “Company”), the largest corporate holder of bitcoin and the world’s first Bitcoin Treasury Company, today announces financial results for the three-month period ended December 31, 2025 (the fourth quarter of its 2025 fiscal year).
“We raised $25.3 billion of capital in 2025 to advance our Bitcoin treasury strategy, making us the largest equity issuer among U.S. public companies for a second consecutive year. We increased our holdings to 713,502 bitcoins, including 41,002 bitcoins acquired in January 2026 alone. STRC (Stretch), our flagship Digital Credit instrument, has grown to $3.4 billion in size, supported by increasing liquidity and declining volatility. Our variable dividend rate mechanism for STRC, currently set at 11.25%, has helped maintain STRC price stability near the $100 stated amount despite a weaker bitcoin price environment. In 2026, we remain focused on expanding STRC to generate amplification and drive growth in Bitcoin Per Share (BPS) for MSTR common stock investors,” said Phong Le, President and Chief Executive Officer.
“2025 marked a landmark year for corporate Bitcoin adoption, supported by the implementation of fair value accounting for bitcoin, clarity that unrealized gains on bitcoin are not taxed under CAMT, and the relaunch of our S&P credit rating. We also executed five preferred equity IPOs, launching our Digital Credit platform that is designed to reduce bitcoin volatility and risk while providing tax-deferred fixed income. We also established a $2.25 billion USD Reserve, providing more than 2.5 years of coverage to support our dividend obligations, further strengthening our credit profile. Strategy’s capital structure is stronger and more resilient today than ever before,” said Andrew Kang, Chief Financial Officer.
“Strategy has built a digital fortress anchored by 713,502 bitcoins and our shift to Digital Credit, which aligns with our indefinite bitcoin horizon. MSTR and STRC operate as complementary components of our capital structure, with STRC generating amplification for MSTR investors and MSTR providing substantial asset coverage while absorbing bitcoin price volatility for STRC investors. We are also excited about an ecosystem emerging around STRC, which would reinforce Strategy’s position as the dominant issuer of bitcoin-backed credit,” said Michael Saylor, Executive Chairman.
Q4 Financial Summary
- Operating Loss: Operating loss for the fourth quarter of 2025 was $17.4 billion, compared to an operating loss of $1.0 billion for the fourth quarter of 2024. Operating loss for the fourth quarter of 2025 includes an unrealized loss on the Company’s digital assets of $17.4 billion. This is the fourth quarterly reporting period in which we have applied fair value accounting. Digital asset impairment losses for the fourth quarter of 2024, determined in accordance with the cost-less-impairment accounting model we were subject to prior to January 1, 2025, amounted to $1.0 billion.
- Net Loss and Net Loss Attributable to Common Stock: Net loss for the fourth quarter of 2025 was $12.4 billion, or $42.93 per common share on a diluted basis, as compared to a net loss of $670.8 million, or $3.03 per common share on a diluted basis, for the fourth quarter of 2024. Net loss attributable to common stockholders for the fourth quarter of 2025 was $12.6 billion, compared to a net loss of $670.8 million for the fourth quarter of 2024.
- Cash and Cash Equivalents: As of December 31, 2025, the Company had cash and cash equivalents of $2.3 billion, as compared to $38.1 million as of December 31, 2024, an increase of approximately $2.3 billion reflecting the Company’s establishment of its USD Reserve in the fourth quarter of 2025.
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Software Highlights
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Revenues:
- Total revenues for the fourth quarter of 2025 were $123.0 million, a 1.9% increase year-over-year, compared to the fourth quarter of 2024.
- Subscription Services Revenues for the fourth quarter of 2025 were $51.8 million, a 62.1% increase year-over-year.
- Product licenses and subscription services revenues for the fourth quarter of 2025 were $59.6 million, a 26.3% increase year-over-year.
- Product support revenues were $48.5 million for the fourth quarter of 2025, a 16.9% decrease year-over-year.
- Other services revenues were $14.9 million for the fourth quarter of 2025, a 1.8% decrease year-over-year.
- Gross Profit: Gross profit for the fourth quarter of 2025 was $81.3 million, representing a 66.1% gross margin, compared to $86.5 million, representing a gross margin of 71.7%, for the fourth quarter of 2024.
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Revenues:
Bitcoin Summary
- BTC Yield: Achieved full year 2025 BTC Yield of 22.8%, compared to the full year 2025 target range of 22.0% to 26.0% (as updated on December 1, 2025).
- BTC Gain: Achieved full year 2025 BTC Gain of 101,873.
- BTC $ Gain: Achieved full year 2025 BTC $ Gain of $8.9 billion (based on bitcoin price of approximately $87,515 as of December 31, 2025), compared to the full year 2025 target range of $8.4 billion to $12.8 billion (as updated on December 1, 2025).
- Digital Assets: As of February 1, 2026, the Company’s digital assets were comprised of approximately 713,502 bitcoins, with an original cost basis and market value of $54.26 billion and $59.75 billion, respectively, which reflects an average cost per bitcoin of approximately $76,052 and a market price per bitcoin of approximately $83,740 as of January 30, 2026, respectively.
Capital Markets Summary
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The Company received aggregate gross proceeds of approximately $5.6 billion during the three months ended December 31, 2025, and additional aggregate gross proceeds of approximately $3.9 billion between January 1, 2026 and February 1, 2026, from the following transactions:
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Common Stock ATM Program: During the three months ended December 31, 2025, the Company received aggregate gross proceeds of approximately $4.4 billion through the issuance and sale of 24,769,210 shares of its class A common stock. Between January 1, 2026 and February 1, 2026, the Company received aggregate gross proceeds of approximately $3.4 billion through the issuance and sale of an additional 20,205,642 shares(1) of its class A common stock under its at-the-market class A common stock offering program (the “Common Stock ATM Program”). As of February 1, 2026, approximately $8.1 billion remained available under the Common Stock ATM Program.
- STRK ATM Program: During the three months ended December 31, 2025, the Company received aggregate gross proceeds of approximately $33.8 million through the issuance and sale of 376,082 shares of its 8.00% Series A Perpetual Strike Preferred Stock (“STRK Stock”) under its at-the-market STRK Stock offering program (the “STRK ATM Program”). Between January 1, 2026 and February 1, 2026, the Company received aggregate gross proceeds of approximately $3.4 million through the issuance and sale of an additional 38,796 shares of its STRK Stock under the STRK ATM Program. As of February 1, 2026, approximately $20.3 billion remained available for issuance under the STRK ATM Program.
- STRF ATM Program: During the three months ended December 31, 2025, the Company received aggregate gross proceeds of approximately $99.5 million through the issuance and sale of 891,397 shares of its 10.00% Series A Perpetual Strife Preferred Stock (“STRF Stock”) under its at-the-market STRF Stock offering program (the “STRF ATM Program”). Between January 1, 2026 and February 1, 2026, the Company did not issue shares of its STRF Stock under the STRF ATM Program. As of February 1, 2026, approximately $1.6 billion remained available for issuance under the STRF ATM Program.
- STRD ATM Program: During the three months ended December 31, 2025, the Company received aggregate gross proceeds of approximately $136.6 million through the issuance and sale of 1,702,080 shares of its 10.00% Series A Perpetual Stride Preferred Stock (“STRD Stock”) under its at-the-market STRD Stock offering program (the “STRD ATM Program”). Between January 1, 2026 and February 1, 2026, the Company did not issue shares of STRD Stock under the STRD ATM Program. As of February 1, 2026, approximately $4.0 billion remained available for issuance under the STRD ATM Program.
- STRC ATM Program: During the three months ended December 31, 2025, the Company received aggregate gross proceeds of approximately $157.6 million through the issuance and sale of 1,575,952 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (“STRC Stock”) under its at-the-market STRC Stock offering program (the “STRC ATM Program”). Between January 1, 2026 and February 1, 2026, the Company received aggregate gross proceeds of approximately $421.0 million through the issuance and sale of an additional 4,207,834 shares of STRC Stock under the STRC ATM Program. As of February 1, 2026, approximately $3.6 billion remained available for issuance under the STRC ATM Program.
- IPO of STRE Stock: In November 2025, the Company received gross proceeds of approximately €620.0 million ($716.8 million based on a USD/EUR exchange rate of 1.1561) through the issuance and sale of 7,750,000 shares of the 10.00% Series A Perpetual Stream Preferred Stock (“STRE Stock”) at a public offering price of €80.00 per share.
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Common Stock ATM Program: During the three months ended December 31, 2025, the Company received aggregate gross proceeds of approximately $4.4 billion through the issuance and sale of 24,769,210 shares of its class A common stock. Between January 1, 2026 and February 1, 2026, the Company received aggregate gross proceeds of approximately $3.4 billion through the issuance and sale of an additional 20,205,642 shares(1) of its class A common stock under its at-the-market class A common stock offering program (the “Common Stock ATM Program”). As of February 1, 2026, approximately $8.1 billion remained available under the Common Stock ATM Program.
(1) Including 61,563 shares sold on January 30, 2026 and settled on February 2, 2026.
- STRC Stock Dividend: Since the IPO of the STRC Stock, the Company has declared and paid, or will pay, the following dividends:
Month | Annualized STRC Rate | Dividend (USD/Share) | Payment Date |
July/August | 9.00% | $0.80 | August 31, 2025 |
September | 10.00% | $0.83 | September 30, 2025 |
October | 10.25% | $0.85 | October 31, 2025 |
November | 10.50% | $0.88 | November 30, 2025 |
December | 10.75% | $0.90 | December 31, 2025 |
January | 11.00% | $0.92 | January 31, 2026 |
February | 11.25% | $0.94 | February 28, 2026 |
USD Reserve Summary
As of February 1, 2026, the Company has a USD Reserve of $2.25 billion, which provides approximately 2.5 years of coverage for dividends on its preferred stock and interest on its outstanding indebtedness (“Dividends”). The USD Reserve was funded using proceeds from the sale of shares of class A common stock under the Common Stock ATM Program.
Strategy’s current intention is to maintain the USD Reserve at an amount sufficient to fund two to three years of its Dividends. The maintenance of this USD Reserve, as well as its amount, terms and conditions, remains subject to Strategy’s sole and absolute discretion and Strategy may adjust the USD Reserve from time to time based on market conditions, liquidity needs and other factors.
STRC Dividend Rate Guidance
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STRC Dividend Adjustment Framework: Strategy is updating its rules-based monthly dividend recommendation framework for STRC Stock. Strategy’s current intention, subject to change in its sole discretion, is to evaluate dividend rates each month using the volume-weighted average price (VWAP) of STRC Stock for the month, as follows:
- Below $95.00: Recommend a dividend rate increase of 50 basis points or more for the next period.
- $95.00 - $98.99: Recommend a dividend rate increase of 25 basis points or more for the next period.
- $99.00 - $100.99: No change in the dividend rate is anticipated. However, management may use its discretion to recommend a minor increase or decrease of 25 basis points depending on prevailing market and capital conditions.
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$101.00 and above: Recommend a dividend rate decrease of 25 basis points, or a larger decrease if one-month term SOFR interest rates declined during that month (in each case, subject to the cap on rate reductions described in the Prospectus and Certificate of Designations for the STRC Stock), and/or a follow-on offering of STRC Stock.
All recommended dividend rate changes under this framework are subject to approval by the Company’s Board of Directors, and dividends will only be declared and paid when, as, and if the Board determines such changes are in the best interest of the Company and its stockholders. Recommendations may be adjusted to reflect prevailing market conditions at the time of recommendation. This structured approach is intended to maintain the trading price of STRC Stock near its $100 per share stated amount. There can be no assurance that the recommended dividend adjustments will achieve such intention. Strategy may change or suspend this framework at any time in its sole discretion, consistent with the terms of the STRC Stock.
ROC Dividend Guidance
For U.S. federal income tax purposes, 100% of distributions paid during calendar year 2025 on the Company’s preferred equity instruments were treated as a nontaxable return of capital (“ROC”) to the extent of a recipient shareholder’s tax basis in their applicable preferred equity instruments, as reported on Forms 8937. Accordingly, such distributions are treated as a return of capital and reduce a shareholder’s tax basis in the applicable preferred equity instruments, to the extent of that basis, with any excess treated as capital gain for U.S. federal income tax purposes.
Forms 8937 for each distribution can be obtained at https://www.strategy.com/investor-relations/dividend-return-of-capital.
Strategy believes that it does not have any accumulated earnings & profits for U.S. federal income tax purposes (“E&P”), and does not expect to generate current E&P in the current year or the foreseeable future. Based on these expectations, Strategy expects the distributions paid on its preferred equity instruments to be treated as ROC for the foreseeable future (i.e., ten years or more).
Special tax considerations may apply to certain taxpayers based on their specific circumstances. Shareholders should consult their own tax advisors regarding the U.S. federal, state, local, and any non-U.S. tax consequences to them in connection with the receipt of any of these distributions. Strategy’s expectations on E&P may change, and any such change could affect the U.S. federal income tax treatment of the distributions.
Strategy Dashboard
Strategy maintains a dashboard on its website (www.strategy.com) as a disclosure channel for providing broad, non-exclusionary distribution of information regarding Strategy to the public, including information regarding market prices of its outstanding securities, bitcoin purchases and holdings, certain KPI metrics and other supplemental information, and as one means of disclosing non-public information in compliance with its disclosure obligations under Regulation FD. Investors and others are encouraged to regularly review the information that Strategy makes public via the website dashboard.
Conference Call
Strategy will be discussing its fourth quarter 2025 financial results on a live Video Webinar today beginning at approximately 5:00 p.m. ET. The live Video Webinar and accompanying presentation materials will be available under the “Events and Presentations” section of Strategy’s investor relations website at https://www.strategy.com/investor-relations. Log-in instructions will be available after registering for the event. An archived replay of the event will be available beginning approximately two hours after the call concludes.
About Strategy
Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) is the world's first and largest Bitcoin Treasury Company. We pursue financial innovation strategies designed to generate value from our bitcoin holdings, including developing and issuing novel fixed-income instruments that provide investors varying degrees of economic exposure to bitcoin. In addition, we are an industry leader in AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere™. We believe our combination of active bitcoin-focused capital management and a scaled operating software business positions us for long-term value creation across both digital asset and enterprise analytics markets.
Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of Strategy Inc in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.
Important Information About KPIs
Bitcoin Per Share (BPS) is a key performance indicator (“KPI”) that represents the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding, expressed in terms of Satoshis, where:
- “Assumed Diluted Shares Outstanding” refers to the aggregate of our Basic Shares Outstanding as of the dates presented plus all additional shares that would result from the assumed conversion of all outstanding convertible notes and convertible preferred stock, exercise of all outstanding stock option awards, and settlement of all outstanding restricted stock units and performance stock units as of such dates. Assumed Diluted Shares Outstanding is not calculated using the treasury method and does not take into account any vesting conditions (in the case of equity awards), the exercise price of any stock option awards or any contractual conditions limiting convertibility of convertible debt instruments.
- “Basic Shares Outstanding” reflects the actual class A common stock and class B common stock outstanding as of the dates presented. For purposes of this calculation, outstanding shares of such stock are deemed to include shares, if any, that were sold under at-the-market equity offering programs.
- A “Satoshi” or a “Sat” is one one-hundred-millionth of one bitcoin, the smallest indivisible unit of a bitcoin.
BTC Yield is a KPI that represents the percentage change in BPS from the beginning of a period to the end of a period.
BTC Gain is a KPI that represents the number of bitcoins held by the Company at the beginning of a period multiplied by the BTC Yield for such period.
BTC $ Gain is a KPI that represents the dollar value of the BTC Gain calculated by multiplying the BTC Gain by the market price of bitcoin. For determining BTC $ Gain QTD and YTD, unless otherwise specified, the Company uses the current market price of bitcoin. For determining BTC $ Gain for a past fiscal year or other past period, the Company uses the market price of bitcoin as of 4:00pm ET as reported on the Coinbase exchange on the last day of the applicable period. The Company uses these market prices of bitcoin for this calculation solely for the purpose of facilitating this illustrative calculation.
The Company uses BPS, BTC Yield, BTC Gain and BTC $ Gain as KPIs to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders. The Company believes these KPIs can supplement investors’ understanding of how the Company chooses to fund bitcoin purchases and the value created in a period by:
- in the case of BPS, measuring the ratio of the Company’s bitcoin holdings to the Assumed Diluted Shares Outstanding, which provides investors a baseline with which to assess the Company’s achievement of its strategy of acquiring bitcoin in an accretive manner over a given period;
- in the case of BTC Yield, measuring the percentage change in BPS from the beginning of a period to the end of a period, which helps investors assess how the Company’s achievement of its strategy of acquiring bitcoin in an accretive manner varies across periods;
- in the case of BTC Gain, hypothetically expressing the percentage change reflected in the BTC Yield metric as if it reflected an increase in the amount of bitcoin held at the end of the applicable period as compared to the beginning of such period, which provides investors with visibility into the absolute change in the Company’s bitcoin holdings resulting from its BTC Yield; and
- in the case of BTC $ Gain, further expressing that change as an illustrative dollar value by multiplying that bitcoin-denominated change by the market price of bitcoin at the end of the applicable period as described above; and
When the Company uses these KPIs, management takes into account the various limitations of these metrics, including that they
- do not take into account that our assets, including our bitcoin, are subject to (i) all of our existing and future liabilities, including our debt, and (ii) the preferential rights of our preferred stockholders to dividends and our assets in a liquidation, and that all such claims rank to senior to those of our common equity; and
- assume that all indebtedness will be refinanced or, in the case of the Company’s senior convertible debt instruments and convertible preferred stock, converted into shares of common stock in accordance with their respective terms.
BPS, BTC Yield, BTC Gain and BTC $ Gain are not, and should not be understood as, financial performance, valuation or liquidity measures. Specifically:
- BPS does not represent (i) the ability of the Company to satisfy the Company’s financial obligations, or (ii) the Company’s book value per share. Ownership of a share of common stock of the Company does not represent an ownership interest in the bitcoin held by the Company.
- BTC Yield is not equivalent to “yield” in the traditional financial context. It is not a measure of the return on investment the Company’s shareholders may have achieved historically or can achieve in the future by purchasing stock of the Company, or a measure of income generated by the Company’s operations or its bitcoin holdings, return on investment on its bitcoin holdings, or any other similar financial measure of the performance of its business or assets.
- BTC Gain and BTC $ Gain are not equivalent to “gain” in the traditional financial context. They also are not measures of the return on investment the Company’s shareholders may have achieved historically or can achieve in the future by purchasing stock of the Company, or measures of income generated by the Company’s operations or its bitcoin holdings, return on investment on its bitcoin holdings, or any other similar financial measure of the performance of its business or assets. It should also be understood that BTC $ Gain does not represent a fair value gain of the Company’s bitcoin holdings, and BTC $ Gain may be positive during periods when the Company has incurred fair value losses on its bitcoin holdings.
The trading price of the Company’s class A common stock is informed by numerous factors in addition to Company’s bitcoin holdings and its actual or potential shares of class A common stock outstanding, and as a result, the trading price of the Company’s securities can deviate significantly from the market value of the Company’s bitcoin, and none of BPS, BTC Yield, BTC Gain or BTC $ Gain are indicative or predictive of the trading price of the Company’s securities.
Investors should rely on the financial statements and other disclosures contained in the Company’s SEC filings.
Contacts
Strategy
Shirish Jajodia
Corporate Treasurer
ir@strategy.com
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