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Strategy Quarterly Report for Q1 Ended Sep 30, 2026

Filing Date
Filed November 2, 2026
Period End
September 30, 2026
In the record · 2016–202610-K1110-Q338-K265

MSTR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Nov ’21Nov ’21
  2. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-Q filed November 2, 2026. Cited figures are marked; the original filing is the authoritative source.

Strategy Inc reported a net income of $19.53 billiona for the three months ended September 30, 2026, driven by a $20.91 billion gain on digital assets, compared with a net loss of $1.23 billion for the nine months, which reflected a $1.86 billion loss on digital assets.

Total revenues were $125.4 millionb for the quarter and $372.1 million for the nine months, with all revenue generated by the Software segment. Bitcoin holdings rose to approximately 847,666 bitcoins at September 30, 2026, carried at a fair value of $70.82 billion against a cost basis of $63.95 billion. The company reported cash and cash equivalents of $2.50 billion, short-term investments of $3.40 billion, and total long-term debt of $6.72 billion, with convertible notes outstanding and $1.50 billion of 2029 Convertible Notes repurchased for $1.38 billion in May 2026.

Preferred stock is a major capital obligation: $13.06 billionc in mezzanine equity, with cash preferred dividends paid of $1.05 billion for the nine months. The company funded bitcoin purchases primarily through class A common stock and STRC preferred stock ATM sales, and it established a USD Reserve policy requiring at least 12 months of expected preferred dividends and interest.

The filing describes a Digital Credit Capital Framework, including STRC preferred stock repurchases of 13.93 million shares for $1.34 billiond, and subsequent events including a Dividend Amendment moving several preferred series to daily dividend payments. The company also disclosed that its bitcoin holdings are its primary treasury reserve asset, and that its software business is not expected to generate sufficient cash flow to cover its obligations over the next twelve months.

02—Key points

Key Highlights

  1. Net income of $19.53 billion for Q3 2026 versus net loss of $1.23 billion for nine months, reflecting a $20.91 billion gain and a $1.86 billion loss on digital assets, respectively.
  2. Total revenues of $125.4 million for Q3 2026 and $372.1 million for nine months, all from the Software segment, with product support and product licenses revenue declining as customers migrate to subscriptions.
  3. Bitcoin holdings of approximately 847,666 at September 30, 2026, with fair value of $70.82 billion versus cost basis of $63.95 billion.
  4. Total long-term debt of $6.72 billion, including $1.05 billion classified as current, after repurchasing $1.50 billion of 2029 Convertible Notes for $1.38 billion.
  5. Preferred stock in mezzanine equity of $13.06 billion; cash dividends paid on preferred stock were $1.05 billion for the nine months ended September 30, 2026.
  6. STRC Stock preferred repurchase program: 13.93 million shares repurchased for $1.34 billion, with the authorization increased to $2.0 billion in September 2026 and $3.0 billion in October 2026.
  7. Cash, cash equivalents, and short-term investments of $5.91 billion; the USD Reserve was $4.88 billion as of September 30, 2026.

03—Questions

Frequently Asked Questions

  1. Why did Strategy report a large net income for the quarter but a net loss for the nine months?

    The quarter reflected a $20.91 billion gain on digital assets, while the nine-month period included a $1.86 billion loss on digital assets, because bitcoin fair value changes flow through operating income under ASU 2023-08.

  2. How much bitcoin does the company hold and what is it worth on the balance sheet?

    The company held approximately 847,666 bitcoins at September 30, 2026, with a carrying fair value of $70.82 billion and an original cost basis of $63.95 billion.

  3. What are the company's main debt obligations?

    Total debt was $6.72 billion net carrying value at September 30, 2026, including convertible senior notes due 2028 through 2032 and a small amount of other secured debt. The 2028 Convertible Notes of $1.01 billion are classified as current.

  4. How is the company funding preferred stock dividends and repurchases?

    The filing states that it funds dividends and repurchases through a combination of at-the-market sales of class A common stock and preferred stock, its USD Reserve and USD Cash, and sales of bitcoin under its BTC Monetization Program.

  5. What subsequent events affect preferred stock holders?

    Stockholders approved on October 28, 2026 amendments that move regular dividends on STRF, STRC, STRK, and STRD stock to daily payment on each business day; STRC dividends began under this schedule in November 2026, and other series are expected to follow in January 2027.

04—Continue

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