TenQ

The Strategy story

Strategy is a bitcoin treasury and enterprise software company whose central question is whether capital raising can expand bitcoin per share while funding preferred dividends and interest.

Written from Strategy's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $157.14share price, last close
  • $62.7Bmarket value
  • 11/36TenQ Score checks passed

The story in brief

  • More bitcoin per share. In the quarter to June 2026, bitcoin holdings rose 11% to 846,000 bitcoin, while Bitcoin Per Share increased 5%.
  • Dividends draw on bitcoin. Strategy generated $218.4 million from bitcoin sales during 2026 through July 26, 2026, to fund a portion of preferred stock dividends.
  • Larger cash cushion. The USD Reserve reached $3.75 billion as of July 26, 2026, covering more than 2.1 years of preferred dividend and interest obligations.

What drives the business

  • Strategy began acquiring bitcoin in August 2020 and adopted a strategy of accumulating it with capital raising proceeds in 2021, making access to financing central to its business.
  • In 2025, it expanded into perpetual preferred instruments, STRF, STRC, STRE, STRK and STRD, offering different dividend, currency and conversion features backed economically by its bitcoin holdings.
  • During 2026 through July 26, 2026, Strategy raised $17.06 billion through its at-the-market programs, including $7.53 billion from STRC issuances.
  • Its enterprise analytics software supplies all revenue, with revenue of $122.4 million in the quarter to June 2026, up 6.9% from the corresponding quarter to June 2025.
  • The treasury business operates on a much larger scale, with 843,775 bitcoin reported as of July 26, 2026, and convertible debt reduced 18% to $6.7 billion during the quarter to June 2026.

What the price assumes

At $157.14 per share, the reverse DCF cannot measure an implied growth assumption because free cash flow and operating earnings are both negative, leaving the price dependent on future profits rather than an established positive cash flow base.

The $62.7 billion market value represents 125.7x revenue, against $498 million of revenue, 7.8% revenue growth and -$26 million of free cash flow over the last twelve months.

Strategy passes 0 of 6 TenQ Value checks, including failing the sales multiple bar of under 2.5x and the free cash flow yield bar of above 3%, although those checks do not directly value its bitcoin holdings.

What could change the story

  • Bitcoin price changes dominate reported earnings, with an $8.32 billion unrealized digital asset loss accounting for nearly all of the $8.33 billion operating loss in the quarter to June 2026.
  • Preferred dividends reached $400.7 million in the quarter to June 2026 versus $49.1 million in the quarter to June 2025, increasing cash demands while earnings fail TenQ's interest coverage check.
  • Capital raising depends on investor demand and can dilute common holders, with the share count up 145.3% over the last three years.
  • The 4.5% BTC Yield reported for 2026 through July 26, 2026 measures growth in gross bitcoin per assumed diluted share, not investment returns or income, and excludes debt and preferred holders' senior claims.
  • Bitcoin custody also creates counterparty exposure through Coinbase, Anchorage and Fidelity, whose contracts exclude liability for certain protocol failures and third-party attacks.

What to watch next

  • Strategy's stated policy is to maintain the STRC dividend rate at 12.00% until sustained trading near $100 per share, with regular repurchases while it trades below $100 per share.
  • The next releases can show how preferred dividends, bitcoin sales and additional issuance change reserve coverage from the more than 2.1 years reported as of July 26, 2026, alongside changes in Net Bitcoin Per Share.
  • Strategy expects preferred distributions to receive non-taxable return of capital treatment for ten years or more, but that expectation depends on its tax earnings and profits and can change.

Sources

Back to the MSTR report