What it does
Strategy Inc. combines a bitcoin treasury operation with an enterprise analytics software business. Founded in 1989 and headquartered in Tysons, it holds bitcoin as its primary treasury reserve asset and develops securities that give investors different forms of indirect exposure to its bitcoin holdings. It was reported on 29 October 2026 that President and Chief Executive Officer Phong Le would also resume the chief financial officer role through the remainder of 2026.
The company generally buys bitcoin using money raised by issuing common stock, preferred stock or debt. It manages those holdings alongside dividend, interest and other obligations. As of February 13, 2026, Strategy held approximately 717,131 bitcoins. It was reported on 26 October 2026 that its holdings were unchanged at 848,517 BTC.
Strategy also sells software that helps organizations use their data. Its Strategy One platform provides dashboards, reports, embedded analytics and AI tools that let users ask questions in ordinary language. Strategy Mosaic provides a data layer intended to give organizations consistent definitions and governance across different data sources. Customers include enterprises in industries such as banking, retail, manufacturing and healthcare, as well as public-sector organizations.
The software is available through cloud subscriptions and on-premises licenses, alongside support, consulting and training. Full support for on-premises licenses is scheduled to end December 31, 2026.
How it makes money
Strategy’s reported revenue comes from its software business. FY2025 Software Business revenue totaled $477.2 million. The company earns that revenue from product support, subscription services, other services and product licenses. Product support brought in $204.2 million in FY2025, while subscription services generated $175.7 million.
Cloud customers generally sign subscriptions for 36 months, with standard support included. Premium support is available for an additional fee. Strategy also sells on-premises product licenses, although those licenses are in an end-of-support cycle. Consulting teams help customers design and implement analytics applications, and education offerings include both free and paid training. Sales are made chiefly through a direct sales force, with partners also reselling or supporting the platform.
The bitcoin treasury operates differently from the software business. Strategy seeks to generate value from bitcoin holdings and from financial structures linked to them. Its securities issuance is a source of financing, not software revenue: the company generally uses proceeds from common stock, preferred stock and debt offerings to purchase bitcoin. Its preferred instruments have different features, including dividend rates, seniority and, in some cases, conversion into common stock.
Bitcoin price changes can affect reported results. Strategy recognizes increases or decreases in the fair value of its digital assets in its operating results. For the year ended December 31, 2025, it recorded a $5.40 billion unrealized loss on digital assets, partially offset by a $1.55 billion deferred tax benefit. It also manages cash for preferred dividends and interest; its designated U.S. dollar reserve was $2.25 billion as of February 13, 2026.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Product support | $204.2 million | 42.8% | −16.2% |
| Subscription services | $175.7 million | 36.8% | 64.5% |
| Other services | $57.7 million | 12.1% | −10.3% |
| Product licenses | $39.7 million | 8.31% | −18.3% |
Customers and how it sells
Strategy sells analytics software to medium-sized and large organizations across commercial industries and the public sector. Its platform supports uses such as reporting, visualization and embedding analytics in other applications. Its marketing also targets government technology buyers, independent software vendors that embed analytics, and systems integrators working with enterprises and governments.
The software business derives revenue primarily from its existing customer base. A direct sales force handles most sales, while a customer success team works on onboarding, training, renewals and expansion after the initial sale. Partners, including consulting firms, resellers and managed service providers, can resell, support or extend the platform. Strategy’s government cloud offering is authorized under FedRAMP guidelines.
In FY2025, U.S. revenue was $272.2 million, or 57.0% of revenue. EMEA revenue was $162.7 million, or 34.1% of revenue; other regions contributed $42.4 million. Strategy had 1,539 employees as of December 31, 2025, with staff based both in the United States and internationally.
On the treasury side, the company offers different securities to reach equity and credit investors. Its preferred stock instruments have features intended for investors with different preferences for income, duration and exposure to its common stock and bitcoin.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| U.S. | $272.2 million | 57.0% | 4.87% |
| EMEA | $162.7 million | 34.1% | 4.32% |
| Other Regions | $42.4 million | 8.87% | −11.7% |
Suppliers and costs
Strategy relies on external providers for both its software and bitcoin operations. Cloud hosting partners include AWS, Microsoft, STACKIT and Google. The company also has purchase commitments related to third-party cloud hosting and software used in its products, marketing and operations. It invests in training, certifications, sales support and joint marketing with channel partners.
Substantially all of Strategy’s bitcoin is held with U.S.-based custodians: Anchorage, Coinbase and Fidelity. The company also uses affiliates of its custodians to execute bitcoin trades. Its custody contracts generally provide for private keys to be held offline, but contain exclusions from custodian liability for some types of loss. Strategy reviews its custodians’ controls and can move bitcoin among them.
The capital structure creates obligations beyond software operating costs. Strategy must manage dividends on preferred stock, interest and principal maturities on debt, alongside working capital and other contractual requirements. The company expects to use proceeds from securities sales and its U.S. dollar reserve to meet short-term liquidity needs; it may also sell bitcoin if necessary. The reserve is management-designated and can be adjusted or reallocated.
- Revenue$477.2M
- Cost of revenue−$149.4M
- Research and development−$93.9M
- Selling, general and administrative−$274.9M
- Other operating costs−$5.4B
- Operating income−$5.4B
Competitive position
In enterprise analytics, Strategy competes with IBM, Microsoft, Oracle, Salesforce and SAP. Competition depends on software quality, performance and reliability, support, marketing, the incorporation of AI and the ability to distinguish products. Strategy’s platform combines dashboards, reports, embedded analytics and AI tools; customers can deploy it through cloud environments or, during the support cycle, on premises.
Strategy also competes for capital when it finances bitcoin purchases. Alternatives include bitcoin exchange-traded products, miners, digital asset exchanges, funds, financial firms and other companies accumulating digital assets. Greater competition for capital could affect the availability and cost of financing for its bitcoin purchases.
Our reading: The installed customer base and subscription relationships can support customer retention, but their strength as a moat is limited by competition from other enterprise software providers and by the need to keep improving the product. Our reading: The breadth of Strategy’s securities gives it several ways to approach investors, but access to capital is not assured and depends on market demand. Our reading: Its large bitcoin holdings support the design of its securities, but bitcoin itself is available through other vehicles, so the holdings alone do not establish exclusive access.
Strategy’s government cloud authorization and partner network are also part of its software offering. Partners can resell, support or extend the platform across regions and industries.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| IBM | Enterprise analytics software | Medium |
| Microsoft | Enterprise analytics software | Medium |
| Oracle | Enterprise analytics software | Medium |
| Salesforce | Enterprise analytics software | Medium |
| SAP | Enterprise analytics software | Medium |
Growth opportunities
Strategy expects to continue accumulating bitcoin, although it has not set a specific target for the amount it will hold. Its current approach focuses on funding purchases primarily through offerings of common and preferred stock. The company evaluates market conditions, financing opportunities, liquidity needs and its capital structure when deciding how to proceed.
Strategy also considers additional financing structures and ways to generate funds using its bitcoin holdings. It may introduce further securities as markets evolve. The company cautions that such opportunities may not be available on acceptable terms and that it may not pursue or successfully implement a particular strategy.
In software, Strategy is developing cloud analytics and AI capabilities. Its conversational AI tools are designed to make analytics accessible to non-technical users, while Strategy Mosaic is intended to provide consistent data definitions across sources and tools. Its sales and customer success teams pursue new customers, renewals and expansion within existing accounts, and its partner network extends sales and service coverage.
Subscription services revenue grew to $175.7 million in FY2025 from $106.8 million in FY2024. Over the same period, product support revenue declined to $204.2 million from $243.8 million. Full support for on-premises product licenses is scheduled to end December 31, 2026, while the company continues to offer cloud subscriptions.
- $510.8MFY2021
- $499.3MFY2022
- $496.3MFY2023
- $463.5MFY2024
- $477.2MFY2025
Structural risks
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Bitcoin volatility: Strategy’s assets are concentrated in bitcoin. Changes in its price can affect financial results, and a significant decline could impair the company’s ability to meet obligations or liquidity needs. Fair-value changes are recognized in operating results.
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Financing and obligations: Preferred dividends, debt interest and principal require cash. Strategy does not expect software operations to generate enough cash to satisfy its short-term or long-term liquidity needs, and equity or debt financing may not be available when needed or on favorable terms.
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Custody and security: Loss or compromise of private keys, cyberattacks or custodian non-performance could affect access to bitcoin. Custody agreements exclude liability for some losses, and a loss may not be covered by insurance or the agreements.
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Liquidity and regulation: Bitcoin may be harder to sell during market instability and is less liquid than cash. Changing digital asset regulation could affect bitcoin markets, service providers or Strategy’s ability to pursue its treasury strategy.
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Software concentration and competition: Software revenue comes primarily from the installed customer base and a single platform with related services. Failure to keep pace on product quality, support, AI features or differentiation could reduce demand from existing and prospective customers.
Bottom line
Our reading
Our reading: Strategy is an enterprise software provider with a bitcoin treasury and capital-raising strategy that exposes the business to factors beyond software sales. Its ability to continue accumulating bitcoin and meet financing obligations depends on market conditions, while the software operation provides customer revenue but is not expected by the company to cover its liquidity needs. The combination makes bitcoin prices, capital access and custody as relevant to understanding the business as software competition.