Strategy Inc Completes Share Sales Under ATM Program While Executing Preferred Stock Repurchases

ATM Program Activity and Common Stock Capital Raises

Strategy Inc executed sales of 5,429,160 shares of Class A common stock during the seven-day period ending July 26, 2026, generating net proceeds of $544.5 million after deducting sales commissions. This activity reflects ongoing utilization of the company's at-the-market offering program, which provides flexibility for capital deployment without requiring advance shareholder approval for each individual transaction. The proceeds from these equity sales contribute to Strategy's operational liquidity and support the company's strategic initiatives across its business operations.

As of the reporting date, Strategy disclosed $22.981 billion in remaining capacity under its common stock ATM programs. The company previously announced a $21.0 billion increase to its common stock offering capacity on March 23, 2026, with sales under the expanded authorization set to commence once existing program capacity becomes substantially depleted. This tiered approach allows management to phase capital raises systematically while maintaining market-sensitive issuance practices aligned with prevailing price levels and investor demand conditions.

Preferred Stock Repurchase Activity and Capital Allocation

During the reporting week, Strategy repurchased 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (ticker: STRC) for an aggregate purchase price of $25.0 million. This activity reflects execution under the company's share repurchase authorization, demonstrating active management of its preferred capital structure. The company completed no repurchases of its other preferred series during the period, including the 10.00% Series A Perpetual Strife Preferred Stock (STRF), 8.00% Series A Perpetual Strike Preferred Stock (STRK), or 10.00% Series A Perpetual Stride Preferred Stock (STRD).

Strategy disclosed that $975.0 million in aggregate purchase price remains available under its Digital Credit Securities Repurchase Program, previously announced on June 29, 2026. This authorization provides the company with discretionary capacity to acquire its own preferred securities when market conditions prove favorable. Additionally, the company maintains a separate $1.0 billion repurchase authorization for Class A common stock under the MSTR Repurchase Program announced the same date. The existence of these programs signals management's confidence in security valuations and provides a mechanism to optimize the company's capital structure through opportunistic buybacks.

Bitcoin Holdings and Digital Asset Portfolio

Strategy reported aggregate bitcoin holdings of 843,775 BTC as of July 26, 2026, with an aggregate purchase price of $63.69 billion, representing an average cost basis of $75,476 per bitcoin. The filing indicates no new bitcoin purchases occurred during the July 20-26 reporting period. These holdings represent a substantial portion of the company's balance sheet and underscore Strategy's positioning as a significant corporate holder of cryptocurrency assets.

The company's bitcoin acquisition and holding strategy reflects its business model of accumulating digital assets as a core operational element. The aggregate purchase price figures disclosed in the filing include all associated acquisition fees and expenses, providing investors with a complete picture of the economic cost basis for the asset portfolio. The magnitude of Strategy's bitcoin holdings suggests the company's valuation and operational performance are materially linked to cryptocurrency market dynamics and Bitcoin price movements.

Preferred Stock Series and Dividend Structure

Strategy maintains multiple series of perpetual preferred stock, each with distinct characteristics and dividend rates. The 10.00% Series A Perpetual Strife Preferred Stock (STRF) offers a fixed 10 percent annual dividend, while the 10.00% Series A Perpetual Stride Preferred Stock (STRD) carries the same 10 percent rate. The 8.00% Series A Perpetual Strike Preferred Stock (STRK) carries a lower fixed rate of 8 percent annually. These fixed-rate instruments provide investors with predictable income streams and represent senior securities in the company's capital structure.

The Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), which was the subject of repurchases during the reporting period, carries a variable dividend rate that adjusts based on market conditions. As of the reporting date, $17.511 billion in capacity remained available for issuance under the STRC program, representing the largest available issuance capacity among Strategy's preferred stock programs. This substantial headroom suggests the company retains significant flexibility to raise additional preferred capital should operational or strategic needs warrant such action.

USD Reserve and Liquidity Positioning

Strategy maintains a dedicated US dollar reserve totaling $3.75 billion as of July 26, 2026, designated to support dividend payments on preferred stock and interest payments on outstanding indebtedness. This reserve demonstrates the company's commitment to maintaining adequate liquidity for its fixed-income obligations across multiple security classes. The disclosed balance includes expected cash proceeds from common stock shares sold under the ATM program that had not yet settled as of the reporting date, indicating forward-looking liquidity management practices.

The size of the USD Reserve relative to Strategy's annual preferred dividend and debt service requirements provides insight into the company's financial flexibility. By maintaining this substantial cash buffer, Strategy ensures its ability to meet contractual obligations to preferred shareholders and debt holders regardless of short-term fluctuations in operating cash flow or bitcoin market conditions. This disciplined liquidity approach supports the company's credit profile and reduces refinancing risk for its outstanding obligations.

ATM Program Capacity Across Security Classes

Strategy disclosed substantial remaining issuance capacity across its entire family of securities as of July 26, 2026. For Class A common stock, $22.981 billion remains available for issuance, incorporating both the existing program and the previously announced $21.0 billion increase. For preferred stock, STRC carries $17.511 billion in available capacity, followed by STRD with $4.015 billion, STRK with $2.1 billion, and STRF with $1.619 billion. This diversified capacity provides management with multiple avenues for capital deployment depending on market conditions and investor demand across different security types.

The company's tiered approach to preferred stock capacity utilization suggests a strategic preference for matching security types to prevailing market conditions and investor preferences. By maintaining substantial capacity across multiple preferred series with varying dividend rates and characteristics, Strategy retains optionality in determining which securities to emphasize for future capital raises. The significant common stock capacity reflects the March 2026 program increase and indicates the company's potential need for ongoing equity capital to support its growth strategy and asset acquisition activities.

Business Model and Strategic Capital Deployment

Strategy Inc operates as a specialized financial services company focused on digital asset accumulation and management, with bitcoin holdings representing a core asset class on its balance sheet. The company's revenue generation and valuation mechanisms differ materially from traditional technology or software companies, instead functioning as an investment vehicle that benefits from cryptocurrency price appreciation and generates returns through strategic digital asset acquisition. This business model requires substantial capital inputs to fund bitcoin purchases and necessitates reliable access to funding through diverse capital markets channels.

The company's utilization of both common and preferred equity channels, combined with debt financing, reflects a sophisticated capital structure designed to optimize costs of capital while maintaining operational flexibility. By issuing preferred stock with fixed and variable dividend rates, Strategy attracts different investor categories with distinct yield and risk preferences. The availability of ATM programs for both common and preferred shares allows management to execute capital raises opportunistically without requiring repeated shareholder approvals, supporting efficient capital deployment aligned with market timing considerations.

Market Disclosure and Investor Information Channels

Strategy disclosed in the filing that it maintains an online dashboard accessible through www.strategy.com to provide broad distribution of information regarding its securities, bitcoin activities, market prices, and supplemental performance metrics. The company designated this dashboard as an official disclosure channel for Regulation FD compliance, ensuring that material information distributed through the platform reaches investors on a non-exclusionary basis. This approach modernizes corporate disclosure by leveraging digital channels to enhance information accessibility and investor awareness of company developments.

The dashboard serves multiple informational purposes, including tracking bitcoin purchase activities, displaying current market prices for the company's various security classes, and presenting key performance indicators relevant to stakeholder evaluation. By establishing this systematic disclosure mechanism, Strategy facilitates more frequent and granular updates than would typically be available through conventional regulatory filing channels alone. Investors and market participants are encouraged to monitor the platform regularly to stay informed of developments between formal regulatory filing submissions, recognizing that the company uses this channel as part of its ongoing disclosure obligations.