Oct 29, 2026 earnings call — Quarterly update: Bitcoin reserves and digital credit
Company reported a record $20.9 billion operating income and held 848,517 Bitcoin at quarter end.
Revenue $0.1B (est $0.1B) · EPS $44.75 (est $20.19)
Key quotes
"We now hold 848,517 Bitcoin and recorded a record $21 billion fair value gain on our Bitcoin holdings in Q3."
"Stretch is returning to health. It is trading between $99 and $100 per our commitment. Today's Stretch closed at $99.99."
"Strategy is leading on-chain. We are the most tokenized company in the digital assets ecosystem."
Analyst Q&A 5
How company will use stronger balance sheet
Q (Andrew Harte · BTIG): How will the company exercise its bigger balance sheet optionality in the next bull market? How will management run the business differently than before?
A: Management said the big change is a much larger, unencumbered Bitcoin balance and USD cash that lets them issue digital credit instead of relying on convertible bonds. They can raise large amounts via perpetual preferreds and create different types of digital credit with varied risk and volatility to attract new investors and markets. They view this as a way to amplify the company without needing Bitcoin price moves alone.
"The big difference is, one, our Bitcoin balance is almost 7x larger, is fully unencumbered." — Phong Le (CEO)
When to use equity vs credit to buy Bitcoin
Q (Khing Oei · Treasury): When would you use the ATM to buy Bitcoin versus issue or buy back STRC? And what would make institutional investors buy STRC at scale?
A: Management said they expect to primarily acquire Bitcoin by issuing digital credit like STRC and other instruments, using new issuance proceeds partly into USD reserve and partly to buy Bitcoin. They noted STRC grew very fast and needed time to stabilize, and that issuing digital credit and paying dividends could create amplification and accrete Bitcoin per share.
"The primary way to acquire Bitcoin is by issuing digital credit, STRC, or other instruments that start to grow over time or other digital credit instruments." — Phong Le (CEO)
Plans for other preferreds and Europe-listed product
Q (Alex Thorn · Galaxy): What will you do for other preferreds trading below face value and the Euro-listed one on an unregulated exchange? Will you try to uplist the European one?
A: Management said the immediate focus is getting STRC (Stretch) back to par, which they think is close and will restore confidence in the instrument. They expect daily dividends and institutional demand to grow STRC, and as STRC improves and Bitcoin rises, the other preferreds should strengthen too. They acknowledged the Euro-listed product is constrained by being on an unregulated exchange and needs correction over time.
"The focus right now is getting Stretch back to par." — Phong Le (CEO)
Does financialization risk Bitcoin’s appeal?
Q (Pete Christiansen · Citi): Does creating more financial claims and leverage on Bitcoin risk undermining its appeal as an asset with few intermediaries?
A: Management said institutional adoption de-risks and legitimizes Bitcoin because regulated institutions solve legal, accounting, custody, security, and compliance problems. They argued more institutional involvement dampens volatility, increases capital and liquidity, and expands beneficiaries and services around Bitcoin. Overall, they view financialization through institutions as a positive for the ecosystem.
"I think it is de-risking the industry to go toward greater institutional adoption because that legitimizes the asset." — Michael Saylor (FOUNDER)
Tokenization and issuing on-chain securities
Q (Scott Melker): Will Strategy issue its own tokenized MSTR and preferreds on-chain for U.S. investors with on-chain dividends? If so, what would allow that and when?
A: Management said tokenization is evolving, especially in the U.S., and protocols, platforms, and compliance rules are still developing. They are studying many tokenization approaches, talking with platforms and innovators, and will act when they have the right legal, compliance, and economic solutions. They cannot give a timing now but said they will announce concrete U.S. offerings when ready.
"In the U.S., that's an evolving situation where the protocols are evolving, the platforms are evolving, the compliance rules are evolving." — Michael Saylor (FOUNDER)