A company with a large bitcoin balance
Strategy operates an enterprise analytics software business and pursues a bitcoin treasury strategy. It uses corporate financing to acquire and hold bitcoin. Michael Saylor is its executive chairman; Phong Le is its president and CEO, as identified in the Q2 2026 report. Source: Form 10-Q.
The latest weekly disclosure reports 847,666 BTC as of September 27, 2026, with an aggregate purchase cost of $63.95 billion. That cost describes purchases, not today’s market value. Source: September 28 filing.
The basic financing loop
The company can raise cash by selling common shares, issuing preferred shares or borrowing. It can use available funds to buy bitcoin, meet obligations, build reserves or repurchase securities. Different funding choices leave different claims on the company.
Common shareholders receive the residual economic exposure after more senior claims. Preferred shareholders have security-specific dividend and liquidation rights. Creditors have contractual debt claims. Owning any of those securities is different from personally holding bitcoin.
A simple hypothetical illustrates dilution: a company with 100 bitcoin and 100 shares has 1 bitcoin per share. If it issues 50 more shares and acquires 25 bitcoin, it ends with 125 bitcoin and 150 shares, or about 0.83 bitcoin per share. Total bitcoin increased while bitcoin per share fell. These are illustrative numbers, not Strategy’s actual figures.
What happens when bitcoin rises or falls?
A higher bitcoin price increases the market value of the reserve. It does not automatically determine MSTR’s share price: the market also values the financing structure, future issuance, costs and management’s decisions.
A lower bitcoin price reduces the value supporting the capital structure. Interest and declared dividend obligations do not simply disappear because bitcoin falls. Strategy’s Q2 2026 filing describes market volatility, liquidity needs and the risks of relying on continued access to financing. Source: risk factors and liquidity discussion.
Preferred dividends need a funding source
STRC’s latest announced regular annual rate is 12.00%, effective for semi-monthly periods starting on or after October 16, 2026. That is a dividend rate on the security’s stated amount, not a yield paid by the bitcoin itself. Source: October 1 filing.
The company lists cash reserves, bitcoin sales, ATM issuance and other financing as potential sources for cash dividends. This is why tracking cash use and security issuance matters alongside bitcoin purchases. Source: Q2 report.
The risks worth keeping in view
- Bitcoin concentration: the company is highly exposed to one volatile asset.
- Dilution: issuing common shares changes the per-share calculation.
- Financing access: favorable capital-market conditions may not persist.
- Senior claims: common stock sits behind debt and preferred stock.
- Governance: shareholders rely on corporate decisions; they do not control specific bitcoin held by the company.
These are mechanisms described in the company’s Q2 2026 disclosures, not a prediction of what will happen next. Read the holdings page, sales history and preferred-stock comparison together.
Primary sources
Source documents checked October 2, 2026. The dates attached to figures describe the reporting period, which may be earlier.