Microstrategy 10.00% Series A Perpetual Strife Preferred Stock Stock Earnings Reports

Key points for investors: Strategy (MSTR) reported a Q1 2026 operating loss driven by mark-to-market Bitcoin moves but remains focused on a buy-and-hold, capital-markets-driven strategy to grow Bitcoin-per-share. As of May 2026 the company holds 818,334 BTC (~3.9% of total supply) with an average cost of ~$76k/BTC and market value ~ $64B (price-dependent). Year-to-date BTC gains and BTC-per-share accretion remain positive (9.4% YTD BTC-per-share; ~18% YoY increase). The firm raised ~$11.7B YTD 2026, largely via common equity and its new preferred ("Stretch"), which has grown rapidly to ~$8.5B outstanding and is central to the company’s strategy to scale digital credit. Balance sheet highlights: cash ~$2.2B USD reserve, long-term debt ~$8.2B, preferred equity ~$9–13.5B (Stretch growth), net leverage low (~9% or ~6B net debt), and a stated stress-case showing BTC reserves cover net debt even after large BTC declines. Management emphasized optionality: they can issue more Stretch, retire convertible debt, buy/sell BTC opportunistically, and use different trades to maximize BTC-per-share. They proposed moving Stretch dividends from monthly to semi-monthly to improve liquidity and investor experience. Management reiterated the core objective: consistently accrete Bitcoin per share (target: double BTC/share in 7 years, ~10% annualized BTC yield) while managing credit metrics and duration. Regulatory and market context: executives view bipartisan U.S. political support and growing bank/institution adoption as positive tailwinds for Bitcoin and digital-credit adoption. Overall thesis: strong asset base and growing digital-credit product (Stretch) provide multiple levers to drive long‑term value for common shareholders despite short-term BTC price volatility.