01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
Strategy Inc (formerly MicroStrategy Incorporated; Nasdaq: MSTR) describes itself as the world's first and largest Bitcoin Treasury Company and also operates an AI-powered enterprise analytics software business.
As of February 13, 2026, it held approximately 717,131 bitcoin, acquired at an aggregate purchase price of $54.5 billiona (average about $76,027 per bitcoin), with a market value of $49.3 billion at $68,734 per bitcoin. Its digital assets were carried at $58.85 billion at December 31, 2025, and the company reported a net loss of $3.85 billion for 2025, driven by a $5.40 billion unrealized loss on digital assets, partly offset by a $1.68 billion income tax benefit. Revenue was $477.2 million, up 3.0% from $463.5 million, and the software business did not generate positive operating cash flow.
Funding relies heavily on capital markets. The company issued five series of perpetual preferred stock (STRF, STRC, STRE, STRK, STRD) in 2025 and funds preferred dividends, which totaled $381.4 millionb paid in 2025, and interest on $8.25 billion of indebtedness, primarily through its at-the-market offering of class A common stock. It established a $2.25 billion USD Reserve in December 2025 to cover these obligations, and it states it does not expect to need to sell bitcoin to meet liquidity needs over the next twelve months, though it may do so if necessary.
The filing highlights material risks: bitcoin volatility, dependence on continued equity and debt issuance, the lower liquidity of bitcoin relative to cash, custody and counterparty exposure, the accounting volatility introduced by ASU 2023-08, a pending shareholder class action (Dodge) challenging the STRK amendment, and the significant voting influence of Chairman Michael J. Saylor, who controls about 40.1%c of total voting power.
02—Key points
Key Highlights
- Holds approximately 717,131 bitcoin as of February 13, 2026, acquired at an aggregate cost of $54.5 billion; the fair market value was $49.3 billion at $68,734 per bitcoin.
- Reported a 2025 net loss of $3.85 billion, including a $5.40 billion unrealized loss on digital assets, partly offset by a $1.68 billion income tax benefit; net loss attributable to common stockholders was $4.23 billion, or $(15.23) per share.
- Total revenues were $477.2 million in 2025, up 3.0% from $463.5 million, with subscription services revenue rising to $175.7 million from $106.8 million while product support revenue declined.
- Raised $25.15 billion in net capital markets proceeds in 2025, including $7.04 billion from preferred stock offerings and $16.27 billion from common stock sales under public offerings.
- Established a $2.25 billion USD Reserve in December 2025 to fund preferred dividends and debt interest; total indebtedness was $8.25 billion and preferred stock notional outstanding was $8.47 billion as of February 13, 2026.
- Adopted ASU 2023-08 on January 1, 2025, moving bitcoin to fair value with changes recognized in earnings, which makes 2025 results not comparable to prior periods; a $12.75 billion cumulative-effect adjustment was added to retained earnings.
- Faces a putative class action (Dodge) challenging the July 2025 STRK certificate of amendment, and Chairman Michael J. Saylor controls about 40.1% of total voting power.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $477.23M$463.46M | +3.0% |
| Cost of Revenue | $149.42M$129.47M | +15.4% |
| Gross Profit | $327.82M$333.99M | −1.8% |
| R&D Expenses | $93.86M$118.49M | −20.8% |
| Operating Expenses | $5.77B$2.19B | +163.9% |
| Operating Income | -$5.44B-$1.85B | −193.8% |
| Net Income | -$3.85B-$1.17B | −229.8% |
| EPS (Basic) | $-15.23$-6.06 | −151.3% |
| EPS (Diluted) | $-15.23$-6.06 | −151.3% |
| Shares Outstanding (Basic) | 277.66M192.55M | +44.2% |
| Shares Outstanding (Diluted) | 277.66M192.55M | +44.2% |
05—Questions
Frequently Asked Questions
How much bitcoin does Strategy hold and what did it cost?
As of February 13, 2026, Strategy held approximately 717,131 bitcoin, acquired at an aggregate purchase price of $54.5 billion, or an average of about $76,027 per bitcoin. At the February 13, 2026 market price of $68,734, the holdings had an aggregate fair market value of $49.3 billion. The company states it has no specific target amount of bitcoin to hold.
How did the company perform financially in 2025?
Strategy reported a net loss of $3.85 billion for 2025, compared with a net loss of $1.17 billion in 2024. The main driver was a $5.40 billion unrealized loss on digital assets under ASU 2023-08, partly offset by a $1.68 billion income tax benefit. Revenue grew 3.0% to $477.2 million, but the company states its enterprise analytics software business did not generate positive operating cash flow for the year.
How does Strategy pay its preferred dividends and debt interest?
The company says it intends to fund preferred dividends and debt obligations primarily through proceeds from sales of class A common stock under its at-the-market program, and may also use cash in its $2.25 billion USD Reserve or proceeds from additional equity or debt financings. It states that it does not expect to need to sell bitcoin to meet liquidity needs over the next twelve months, but may sell bitcoin if financing is unavailable and the USD Reserve is depleted.
What are the main risks for investors?
Key risks include the high volatility of bitcoin, which has traded below $65,000 and above $120,000 over the prior twelve months; dependence on continued equity and debt financing to fund obligations and bitcoin purchases; limited liquidity of bitcoin relative to cash; custody and counterparty risk; large swings in reported earnings from fair value accounting; and a pending shareholder class action. The company is also subject to the risk that its market capitalization diverges from its bitcoin holdings, and it may face a downgrade from its B- S&P credit rating.
Who controls voting power at Strategy?
Michael J. Saylor, Chairman and Executive Chairman, beneficially owned 19,616,680 shares of class B common stock as of December 31, 2025, representing 40.1% of total voting power. Class B shares carry ten votes per share, so Saylor has significant influence over matters requiring stockholder approval, including mergers and director elections.
06—Continue