MicroStrategy Incorporated, now operating as Strategy, is a pioneering business intelligence (BI) company that has transformed into a Bitcoin treasury company. Founded in 1989 by Michael J. Saylor, the company has been a leader in enterprise analytics software, providing solutions for data visualization, mobile intelligence, and cloud-based BI. However, under ...MicroStrategy Incorporated, now operating as Strategy, is a pioneering business intelligence (BI) company that has transformed into a Bitcoin treasury company. Founded in 1989 by Michael J. Saylor, the company has been a leader in enterprise analytics software, providing solutions for data visualization, mobile intelligence, and cloud-based BI. However, under Saylor's leadership, MicroStrategy has shifted its corporate strategy to acquiring and holding Bitcoin as its primary treasury reserve asset, becoming one of the largest corporate holders of Bitcoin. The company's ticker STRF represents its 10.00% Series A Perpetual Strife Preferred Stock, which was issued in March 2025. This preferred stock carries a $100 face value and pays a fixed 10% annual dividend in quarterly installments, appealing to income-oriented investors. The proceeds from issuing STRF are used to fund further Bitcoin purchases, reinforcing the company's commitment to its Bitcoin strategy. As of the latest data, MicroStrategy holds over 200,000 Bitcoin, and its stock price is closely tied to Bitcoin's performance. The preferred stock provides an indirect way for investors to gain exposure to Bitcoin's potential upside while receiving steady income, though it ranks senior to common stock in dividend payments and liquidation preference. The company operates globally with approximately 1,539 employees, generating revenue primarily from software licenses, subscriptions, and services, but its financial performance is heavily influenced by Bitcoin price volatility and impairment charges. The CEO, Phong Q. Le, oversees daily operations, while Michael Saylor remains as executive chairman. The preferred stock's high yield and connection to Bitcoin make it a unique and speculative investment, suitable for those interested in cryptocurrency exposure with fixed-income characteristics.
Founded
1989
Employees
1539
CEO
Phong Q. Le
Full Name
MicroStrategy Incorporated 10.00% Series A Perpetual Strife Preferred Stock
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$477.2M
+3.0%
-1.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-3.8B
-229.8%
+34.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+68.7%
-4.7%
-0.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-8.6%
+97.9%
-56543.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-806.3%
-220.3%
+33.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-22.6B
-2.0%
-145.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-4731.3%
+1.0%
-146.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
16.2%
-59.2%
-17.4%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
5.62x
+691.1%
-11.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon. My name is Leo, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hercules Capital Second Quarter 2026 Financial Results Conference Call. All participant lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star one on your telephone keypad. Please be advised that today's conference may be recorded. Lastly, if you should require operator assistance, please press star zero. I will now turn the call over to Michael Hara, Managing Director of Investor Relations. Please go ahead.
Michael Hara: Thank you, Leo. Good afternoon, everyone, and welcome to the Hercules conference call for the second quarter of 2026. With us on the call today from Hercules are Scott Bluestein, CEO and Chief Investment Officer, Seth Meyer, President, and Andrew Olson, CFO. Hercules financial results were released just after today's market close and can be accessed from the Hercules Investor Relations section at investor.htgc.com. An archive webcast replay will be available on the investor relations webpage following the conference call. During this call, we may make forward-looking statements based on our own assumptions and current expectations. These forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Actual financial results may differ from the forward-looking statements made during this call for a number of reasons, including but not limited to, the risks identified in our annual report on Form 10-K and other filings that are publicly available on the SEC's website. Any forward-looking statements made during this call are made only as of today's date, and Hercules assumes no obligation to update any such statements in the future. With that, I'll turn the call over to Scott.
Scott Bluestein: Thank you, Michael, and thank you all for joining the Hercules Capital Q2 2026 earnings call. In the second quarter of 2026, Hercules delivered another strong quarter of record operating performance, strong originations, and stable credit. During the quarter, we continued to navigate through a period of general volatility, although the broader market backdrop improved relative to Q1. The three themes that guided us in Q1, disciplined and conservative new underwriting, maintaining a strong and flexible balance sheet, and being proactive in terms of managing credit, continued to be our focus in Q2. As of the end of Q2, our balance sheet and liquidity position is strong, our portfolio credit performance remains stable, and our investment portfolio continued to generate net investment income in Q2 that comfortably covered our base shareholder distribution by 125%. Coming off a record-breaking Q1 for originations, our platform continued to see robust deal flow in Q2. For the first half of …
