Strategy Inc's 10-K, read.

Strategy Inc is a leveraged bitcoin treasury company that has shifted from software to a capital-markets-driven model of financing bitcoin accumulation through complex preferred stock issuances; while it holds ~848,500 bitcoins (up sharply from 717,131 in Feb 2026), the business is increasingly dependent on bitcoin price appreciation and favorable capital markets access, with Q2 2026 showing a $20.8B net loss driven by $22.8B unrealized losses on digital assets, negative stockholder equity trajectory, and mounting preferred dividend obligations.

• Acute bitcoin price exposure: Q2 2026 unrealized loss of $22.8B on digital assets; accumulated deficit swung from +$6.3B retained earnings (Dec 2025) to -$15.2B (June 2026); stock price volatility directly drives mark-to-market losses on 846,000 bitcoin holdings
• Escalating leverage and dividend burden: Preferred stock (mezzanine equity) ballooned from $6.9B (Dec 2025) to $14.4B (June 2026); preferred dividend payables surged to $155M; funding dividends depends on continuous ATM equity raises, which dilutes common shareholders
• Deteriorating equity base: Common stockholders' equity fell from $44.1B to $30.9B in six months; six-month net loss of $20.8B attributable to common shareholders; per-share dilution ongoing (shares outstanding grew 20% in six months)
• Counterparty and custody risk: $49.7B in digital assets held with three custodians (40% Coinbase, 37% Anchorage, 23% Fidelity); loss of private keys or custodian failure could result in total loss; custodial agreements cap liability and exclude indirect damages
• Regulatory uncertainty on bitcoin classification: If regulators reclassify bitcoin as a security, company could be forced to register as investment company under 1940 Act, restricting capital raising and business model; evolving regulatory landscape globally poses existential threat

Not investment advice — general research, the same for every reader. You make your own calls.