Strategy (MSTR) Q3 2026 Earnings Call: Q&A Summary

Q: Andrew Harte of BTIG asked how the stronger balance sheet enables the company to take advantage of the bull market and what the key differences are in management strategy compared to prior cycles.

A: Phong Le explained that the company now holds 7x more Bitcoin, which is fully unencumbered, and has U.S. dollar reserves, allowing for the issuance of perpetual preferreds rather than relying on less liquid convertible notes. Andrew Kang added that they have significant credit capacity to create various types of credit, including zero-volatility digital money, without needing to raise additional equity.

Q: King Hoi of Treasury asked for guidance on when the equity ATM will be used to buy Bitcoin and at what point it would make sense to sell Stretch to buy back MSTR stock.

A: Phong Le stated that the primary method for acquiring Bitcoin is issuing digital credit like Stretch, then using the proceeds to buy Bitcoin while paying dividends. He noted they might issue equity above 1x NAV if the opportunity arises, but digital credit remains the main lever for accretion.

Q: King Hoi also asked why Stretch has not recovered more strongly despite buybacks and what would drive institutional adoption to scale the asset to $100 billion or $1 trillion.

A: Phong Le explained that Stretch grew too quickly from $2.5 billion to $10.5 billion, leading to a dislocation that took four months to cycle through. He believes the move to daily dividends will attract large institutional capital currently sitting in T-bills, helping the instrument scale.

Q: Alex Thorn of Galaxy asked about plans for other preferred instruments like Stride and Strike that are trading around 70, and the European instrument that barely trades.

A: Phong Le said the priority is getting Stretch back to par to build confidence, after which other instruments should naturally recover as Bitcoin prices rise. He noted that the European instrument is a challenge due to its listing on an unregulated exchange, which limits retail participation.

Q: Alex Thorn asked a follow-up regarding the recovery of these instruments.

A: Michael Saylor added that all these instruments dislocated together and recovered together, and he remains optimistic that moving them to daily dividends will improve their value and liquidity.

Q: Peter Christiansen of Citi asked if the company's success in accelerating the financialization of Bitcoin risks undermining the asset's core appeal by introducing leverage and counterparty exposure.

A: Michael Saylor argued that institutional adoption actually derisks the asset by legitimizing it and creating mature derivatives markets, which helps dampen volatility. He compared the evolution of Bitcoin to the oil and electricity industries, noting that thousands of companies adding value to the base product is a positive development that expands the industry's beneficiary base.

Q: Scott Melker asked if the company plans to issue its own tokenized MSTR or preferreds on-chain for U.S. investors, given that current products are offshore and do not pay cash dividends.

A: Michael Saylor stated that the company is studying the market and advocating for progressive tokenization rules, but there is no single standard yet. He emphasized that they are working to structure securities optimally for tokenization and will provide updates when concrete offerings for U.S. investors are ready, noting that the U.S. capital markets have not yet converged on a standard.