STRC — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-03

• Beginning with the second quarter of 2026, we have realigned our financial reporting to present our operations as two reportable segments: our Software segment and our Bitcoin segment. In prior periods, we reported a single reportable operating segment, our Software segment (previously referred to a…

• As part of our capital management strategy, we maintain a U.S. dollar reserve (the "USD Reserve") intended to support the payment of dividends on our Preferred Stock and interest expense on our outstanding indebtedness. In June 2026, our board of directors approved a formal policy governing the USD …

• pursue strategies intended to generate income streams or otherwise generate funds using our bitcoin holdings, and (iii) periodically sell bitcoin for general corporate purposes, such as satisfying liquidity needs and financial obligations.

• Strategy is a pioneer in AI-powered solutions delivering a comprehensive portfolio of software and services that addresses a wide spectrum of enterprise data challenges. We provide solutions designed to transform complex, fragmented data environments into unified, reliable ecosystems that drive insi…

• Our cloud-native analytics platform, is used by enterprises across a wide range of industries to deliver business intelligence and analytics solutions. It delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, …

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• As part of our capital management strategy, we maintain a U.S. dollar reserve (the "USD Reserve"), which is a management-designated portion of our liquidity intended to support the payment of dividends on our Preferred Stock and interest on our outstanding indebtedness. Our capital management strate…

• Strategy is a pioneer in AI-powered solutions delivering a comprehensive portfolio of software and services that addresses a wide spectrum of enterprise data challenges. We provide solutions designed to transform complex, fragmented data

• environments into unified, reliable ecosystems that drive insight and action across organizations worldwide. Our vision is to drive growth and competitive advantage for our customers by delivering Intelligence Everywhere™.

• Strategy One™, our cloud-native analytics platform, is used by enterprises across a wide range of industries to deliver business intelligence and analytics solutions. It delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insuranc…

• (b)In the first quarter of 2026, we purchased bitcoin using $2.06 billion of the net proceeds from ATM sales of STRC Stock, $3.3 million of the net proceeds from ATM sales of STRK Stock and $5.19 billion of the net proceeds from ATM sales of class A common stock.

Text added vs the prior filing · source: 10-Q · 2026-08-03

• STRE Stock, our ability to make such payments depends on prevailing currency exchange rates, which have historically been volatile.

• Our STRC Stock accumulates cumulative dividends, which we refer to in this Item 3 Quantitative and Qualitative Disclosures About Market Risk as “regular dividends”, at a variable dividend rate, which is 12.00% per annum as of the date of this Quarterly Report. However, we have the right, in our sole…

• As of June 30, 2026, the regular dividend rate per annum on STRC Stock was 11.50%. On June 29, 2026, in connection with our Digital Credit Capital Framework, we announced an increase of the regular dividend rate per annum on STRC Stock to 12.00%, effective for semi-monthly regular dividend periods w…

• As of June 30, 2026, we had cash, cash equivalents, and Treasury Bills and Treasury Notes with a maturity of less than one year of approximately $2.45 billion in the aggregate. Integral to our cash, cash equivalents and short-term investments is our USD Reserve, which is primarily invested in money …

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• Our STRC Stock accumulates cumulative dividends, which we refer to in this Item 3 Quantitative and Qualitative Disclosures About Market Risk as “regular dividends”, at a variable dividend rate, which was initially set at 9.00% per annum. However, we have the right, in our sole and absolute discretio…

• As of March 31, 2026, the regular monthly dividend rate per annum on STRC Stock was 11.50%, and if we determined to increase the regular dividend rate on our STRC Stock by 50 basis points, STRC Stock’s monthly dividend accrual would increase by approximately $2.1 million. We do not believe our inter…

• As of March 31, 2026, we had cash and cash equivalents of approximately $2.21 billion. Integral to our cash and cash equivalents is our USD Reserve, which is primarily invested in money market funds to earn interest income on short-term cash balances. Interest earned on such funds fluctuates with pr…

Text added vs the prior filing · source: 10-Q · 2026-08-03

• procedures as of the end of the period covered by this Quarterly Report, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

• Changes in Internal Controls. No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three months ended June 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal …

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• Changes in Internal Controls. No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the three months ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal…

Text added vs the prior filing · source: 10-Q · 2026-08-03

• As part of our bitcoin strategy, we expect to issue additional preferred stock, and we expect to incur or continue to incur additional indebtedness and fixed charges.

• Our board-approved USD Reserve policy is an internal policy and does not create contractual rights in favor of holders of our securities. Likewise, our BTC Monetization Program is discretionary, and does not obligate us to sell bitcoin, fund any dividend or interest payment through sales of bitcoin,…

• apply to certain digital asset transactions, and other jurisdictions may adopt similar measures. These and similar changes, many of which have been adopted or are under active consideration by participating jurisdictions and/or other countries, could increase tax uncertainty and may adversely affect…

• The U.S. also enacted the IRA in August 2022. The IRA imposes (i) a 1% excise tax on certain stock repurchases made by publicly traded U.S. corporations, and (ii) a 15% CAMT on a corporation with respect to an initial tax year and subsequent tax years, if the average annual AFSI for any consecutive …

• 31, 2025 do not reflect the potential variability in earnings that we have experienced to date and may experience in the future relating to our bitcoin holdings.”

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• As part of our bitcoin strategy, we expect to issue additional preferred stock, and we expect to incur or continue to incur additional indebtedness and fixed charges. On December 1, 2025, we announced the establishment of the USD Reserve, a management-designated portion of our liquidity intended to …

• Although we have established the USD Reserve, we may nevertheless decide to sell bitcoin to meet our liquidity needs and financial obligations if we determine it is favorable to do so. We may also be required to sell our bitcoin for these purposes if we deplete our USD Reserve and we are unable to s…

• The U.S. also enacted the IRA in August 2022. The IRA imposes (i) a 1% excise tax on certain stock repurchases made by publicly traded U.S. corporations, and (ii) a 15% CAMT on a corporation with respect to an initial tax year and subsequent tax years, if the average annual AFSI for any consecutive …

• regulations similar to the Interim Guidance. Pursuant to the Interim Guidance, we plan to exclude any unrealized gains and losses on our bitcoin holdings from the calculation of our AFSI for purposes of determining whether we are subject to CAMT. As a result, we do not expect to become subject to CA…

• •investment and trading activities, such as (i) trading activities of highly active retail and institutional users, speculators, other companies executing a bitcoin strategy similar to ours, miners and other investors; (ii) actual or expected significant dispositions of bitcoin by large holders, inc…

Text added vs the prior filing · source: 10-Q · 2026-08-03

• In June 2026, upon the recommendation of the Nominating Committee of our board of directors, our board of directors increased the size of the Compensation Committee from two to three directors and appointed Gregg J. Winiarski to the Compensation Committee, effective immediately. Our board of directo…

• On July 28, 2026, our board of directors approved the following board governance matters:

• Reconstitution of the Nominating Committee as the Nominating and Corporate Governance Committee. Our board of directors amended and restated the charter of its Nominating Committee to expand the committee's purpose and responsibilities to include corporate governance matters and renamed the committe…

• Compensation of the Nominating and Corporate Governance Committee. Upon the recommendation of the Compensation Committee, our board of directors approved compensation for service on the Nominating and Corporate Governance Committee of $20,000 per year for each member, with the Chairman of the Nomina…

• Establishment of the Capital Management Committee. Our board of directors established a new standing Capital Management Committee and appointed Michael J. Saylor, Stephen X. Graham and Carl J. Rickertsen as its members. In

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• Retirement of Jeanine Montgomery as Vice President & Chief Accounting Officer

• On May 6, 2026, Jeanine Montgomery, the Company’s Vice President & Chief Accounting Officer, informed the Company of her intention to retire on June 30, 2026. The Company extends its gratitude to Ms. Montgomery for her contributions to the Company during her tenure and states that her retirement is …