AI Earnings Predictions for MicroStrategy Incorporated (MSTR)

EX-99.1

2 mstr-20260730x8kxex991.htm

EX-99.1

Document

Exhibit 99.1

Contact:

Strategy

CJ (Chaitanya Jain)

Head of Investor Relations

ir@strategy.com

Strategy Announces Second Quarter Financial Results;

Currently Holds 843,775 Bitcoin; Now the Largest Institutional Holder Globally

Digital Capital Highlights (as of July 26, 2026)

▪843,775 bitcoin holdings, 25% growth year to date 2026

▪4.5% BTC Yield achieved year to date

▪BTC Monetization Program established; $218.4 million of sales year to date 2026

Digital Equity Highlights (as of July 26, 2026)

▪$17.06 billion of capital raised year to date through our ATM programs

▪$1.0 billion MSTR repurchase program established; no repurchases to date

▪Introduced new metrics such as BTC Hurdle ARR & Net Bitcoin Per Share on Strategy.com

Digital Credit Highlights (as of July 26, 2026)

▪STRC issuances raised $7.53 billion year to date 2026, representing a 254% growth

▪$1.06 billion in cumulative dividends paid on all preferred stock to date

▪Grew the USD Reserve to $3.75 billion, over 2.1 years of coverage, reserved for dividends and interest

▪Repurchased $28.9 million aggregate notional amount of STRC for $25.0 million, a 13% discount to par

TYSONS CORNER, Va., July 30, 2026 – Strategy Inc (Nasdaq: STRF/STRC/STRK/STRD/MSTR; LuxSE: STRE) (“Strategy” or the “Company”), the largest institutional holder of bitcoin and the world’s first Bitcoin Treasury Company, today announces financial results for the three-month period ended June 30, 2026 (the second quarter of its 2026 fiscal year).

“In the second quarter of 2026, Strategy strengthened its balance sheet while navigating a meaningful bitcoin price decline. We grew our bitcoin holdings by 11% to 846,000 bitcoin, reduced our convertible debt by 18% to $6.7 billion, increased our USD Reserve by 12% to $2.4 billion, and grew Bitcoin Per Share by 5%. Our objective is for STRC to trade over time at $99 to $100. If STRC trades below $100, we intend to repurchase STRC shares in a regular and disciplined manner, scaling our repurchases according to market price and liquidity. These repurchases are an attractive use of capital that reduces our future preferred dividend requirements at a discount while allowing independent market demand to establish a healthy and sustainable market,” said Phong Le, President and Chief Executive Officer.

“Strategy's USD Reserve currently stands at $3.75 billion, which is enough to cover our existing preferred dividend payments and interest obligations for more than 2.1 years. We've also built a track record of 18 months of consecutive dividend payments, having never missed a dividend despite the recent deep drawdown in bitcoin price. To give investors clearer transparency into our credit quality and equity strength, we've introduced a set of enhanced metrics, now available on strategy.com. Our BTC Hurdle ARR of 10.8% represents our current effective cost of credit. If BTC ARR is above this

rate, Net BTC Per Share captures a positive spread and appreciates faster than bitcoin on a go-forward basis,” said Andrew Kang, Chief Financial Officer.

“In the midst of this phase of muted bitcoin sentiment and market skepticism, we continue to evolve our business model and establish Digital Credit as a new asset class. Our plan is to return STRC to health with stable demand, high liquidity, and low volatility trading near par. We believe this is the best way to create shareholder value over the long term,” said Michael Saylor, Founder and Executive Chairman.

Q2 Financial Summary

▪Operating Loss: Operating loss for the second quarter of 2026 was $8.33 billion, compared to $14.03 billion operating income for the second quarter of 2025. Operating loss for the second quarter of 2026 includes an unrealized loss on the Company’s digital assets of $8.32 billion, compared to an unrealized gain on the Company’s digital assets of $14.05 billion for the second quarter of 2025.

▪Net Loss and Net Loss Attributable to Common Stock: For the second quarter of 2026, the Company reported a net loss of $8.22 billion, or a net loss of $24.45 per common share on a diluted basis, as compared to a net income of $10.02 billion, or a net income of $32.60 per common share on a diluted basis, for the second quarter of 2025. Net loss attributable to common stockholders for the second quarter of 2026 was $8.62 billion, reflecting $400.7 million of dividends on preferred stock, compared to net income attributable to common stockholders of $9.97 billion, reflecting $49.1 million of dividends on preferred stock, for the second quarter of 2025.

▪Cash and Cash Equivalents, and Short-term Investments: As of June 30, 2026, the Company had cash and cash equivalents of $1.71 billion, as compared to $2.21 billion as of March 31, 2026. As of June 30, 2026, the company had short term investments of $736.1 million; there were no short-term investments as of March 31, 2026.

▪Revenues: Total revenues for the second quarter

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 5, 2026

STRATEGY INC

(Exact name of Registrant as Specified in Its Charter)

Delaware001-4250951-0323571 (State or Other Jurisdiction of Incorporation) (Commission File Number)(IRS Employer Identification No.)

1850 Towers Crescent Plaza Tysons Corner, Virginia 22182 (Address of Principal Executive Offices)(Zip Code)

Registrant’s Telephone Number, Including Area Code: 703 848-8600 (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s) Name of each exchange on which registered 10.00% Series A Perpetual Strife Preferred Stock, par value $0.001 per shareSTRFThe Nasdaq Global Select Market Variable Rate Series A Perpetual Stretch Preferred Stock, $0.001 par value per shareSTRCThe Nasdaq Global Select Market 8.00% Series A Perpetual Strike Preferred Stock, par value $0.001 per shareSTRKThe Nasdaq Global Select Market 10.00% Series A Perpetual Stride Preferred Stock, par value $0.001 per shareSTRDThe Nasdaq Global Select Market Class A common stock, $0.001 par value per shareMSTRThe Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.                                             Results of Operations and Financial Condition. On February 5, 2026, Strategy Inc (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended December 31, 2025. A copy of this press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 8.01.                                             Other Events. Updates to STRC Stock Dividend Adjustment Framework The Company today announced an update to its Dividend Adjustment Framework applicable to its Variable Rate Perpetual Stretch Preferred Stock ("STRC Stock"). The Company is updating its rules-based monthly dividend recommendation framework for STRC Stock to evaluate dividend rates each month using the volume-weighted average price ("VWAP") of STRC Stock for the month. The Company’s current intention, subject to change in its sole discretion, is to evaluate dividend rates each month using the 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. •$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 follo