Strategy Inc Common Stock Class A Investor update

Hello, everyone, and welcome. I'm Natalie Brunell, author of "Bitcoin is For Everyone" and host of the "Coin Stories" podcast, and I'm very happy to be back moderating Strategy's second live investor Q&A. We're live today on X and YouTube, and over the next hour or so, we will get to as many of your questions as we can. They were submitted directly by retail and institutional investors through the company's official question form and on X. We received dozens and dozens of submissions covering a range of topics, and my job today is simply to put those questions to the company's leaders and keep us moving so we can cover as much ground as possible.

If you're watching live, you can continue submitting questions in the replies, and my colleague, Alex De Yani, will be looking out for new topics and angles that haven't already been covered by the submissions we received over the last week. If you can't stay for the entire hour, don't worry. The full replay will be available on Strategy's platform, along with mine. Before I introduce our guests, a brief disclosure. Some statements made during today's presentation regarding future expectations, plans, and prospects may constitute forward-looking statements. Actual results may differ materially due to important factors, including fluctuations in the price of Bitcoin, and the risks described in Strategy's SEC filings, including its quarterly report on Form 10-Q, filed on August 3rd, 2026. This presentation is for informational purposes only.

It is not an offer to sell or a solicitation of an offer to buy any securities, and it is not investment, financial, legal, or tax advice. Any offering of securities will be made only by means of a prospectus, and additional information about Strategy is available at strategy.com. With that, let me introduce Michael Saylor, the founder and Executive Chairman of Strategy, and Phong Le, Strategy's Chief Executive Officer. Michael and Phong, great to have you back.

Happy to be here. Thanks for having us, Natalie.

All right, well, we have a lot of questions to get through, so let's jump right in. The first one came from several investors, and it's directed to you, Michael. You recently posted a chart on your X page where you outlined a digital asset monetary spectrum that included digital capital, digital credit, digital money, and digital currency. What is SR-STRCUSX, which you describe in that visual as digital money, and do you disagree that Bitcoin is money?

I think if you're using the theoretical term for money, then you would say money is a non-sovereign store of value bearer instrument, like gold. That's a classical Austrian economist view of money. The current conventional view of money is that money is a USD equivalent or a fiat currency equivalent asset, like the USD, that holds its peg against a fiat currency. I think that 99% of the world thinks that money is a fiat currency, and a money market is a fiat currency that generates yield. I think that there's 1% of the world that are Austrian economists that think that money is gold. Some of them think money is silver and money is Bitcoin.

I think that's an academic debate, and there's not much point in getting mired in an academic debate because about 0.1% of the capital in the world or 0.1% of the economic value in the world is actually invested in the Bitcoin network right now. 99.9% of all the capital, all the money, all the stuff of value, is invested in stuff other than the Bitcoin ecosystem right now. A lot of that's equity capital. A lot of it's real estate capital. Some of it's metallic capital, like gold. Some of it is credit. Hundreds of trillions of USD of credit. I think that if you want the Bitcoin network to grow by a factor of 10 or 100, then you're going to have to attract capital from the traditional finance establishment, and that means attracting equity capital flows or credit capital flows or money market flows.

For the people that have not yet bought Bitcoin, the ones that we are actually working to serve, their view is that money is a medium of exchange or unit account of store of value, and they would think that that is the Japanese yen in Japan or a yen money market in Japan. They would think it is a USD money market in the U.S. They think it is a euro money market or a euro in the European Union. The TradFi or the Keynesian view of money is money is a fiat currency or a fiat currency equivalent that pays yield. The chart that I am illustrating is the digital assets taxonomy. We think that Bitcoin is capital, and so digital capital is Bitcoin, and Bitcoin competes against gold, real estate, equity capital or credit capital, or money markets held as capital or art.

Those are all the things that Bitcoin competes against. Again, 99% or 99.9% of the economic value of the capital in the world is not Bitcoin. If you want to get it, you need to compete against those things. You need to tell people why Bitcoin is better than gold or art or real estate or equity, like the S&P index, or bar gold. STRC is digital credit. We have extracted a credit instrument from capital. It is semi-volatile. It is not as volatile as Bitcoin, but it is more volatile than a fiat currency. The next step is to take STRC and create something that looks like a digital money. A digital money would be the mythical Bitcoin-backed stablecoin. It is a fiat currency stable asset, whether it is a stable dollar or stable yen or stable euro, but pays yield.

The difference between digital currency and digital money is digital currency is deemed to be stable coins. It is like Tether or Circle or any other digital stablecoin in whatever currency system is out there. Digital currencies don't pay yield. Digital currencies are the winners of medium exchange in the crypto ecosystem and the digital assets ecosystem. I think there are some fundamentalist Bitcoin OGs that wish that wasn't the case, or they have been hoping it wouldn't be the case. But I think that at this point, in the year 2026, we can see that substantially all the prices in the world, if I were to say 99.999999% of the prices in the world are in fiat currency, I might be understating the case.

It is just to somewhere between six and 100 significant digits after the decimal place, all the prices are in fiat currencies, which means that the medium exchange is generally the USD. If you are holding stable coins, they don't pay a yield, though. It makes a good medium exchange. It makes a very poor store value or a weak store of value. The idea behind digital money is to take the best of digital credit and the best of digital currency, and merge the two together and create something which is generally stable to a fiat currency but pays a yield. If you can actually create a yield on a stable currency instrument, then you have got something which serves as much better store of value. That particular asset that I put in my chart, that is the first example.

Well, one of the first examples, maybe the first example of someone creating a digital money asset, and they are creating a digital money asset by engineering a stable asset that actually has yield. The yield comes from digital credit, and the asset is stabilized through some financial engineering, to be stable to a USD. I expect there will be dozens, if not hundreds, of different types of monetary assets that people build. It is not the only one. I think there is about a dozen different organizations that are building digital monetary assets in the digital assets ecosystem. I do not think digital money will be limited to tokens. I actually think that you will see digital money funds created as ETFs in the U.S. and probably as ETPs and other types of publicly traded funds that trade on exchanges all around the world.

I also think that we will see private funds, just like there are money market funds that are private, that do not trade publicly. There are money market funds that are public, that trade as ETFs. There are monetary instruments like currencies that are stablecoins. The thing that we think is really important is that if Bitcoin is going to grow by a factor of 10 or a factor of 100, we need to facilitate capital flows from the credit markets and the money markets. Right now, what is going on, if you took away STRC and you took away the digital money tokens that are now starting to develop, then what you have is fiat currency flowing into the stablecoin market, and it is all backed by fiat currency like US dollars. Then you have capital flowing into the capital market that actually supports BTC.

But there would be no capital flows from the credit markets or the money markets into this ecosystem. If we create good credit, then we will be able to create monetary instruments on top of it. The companies that create digital credit, like Strategy and Strive, will have equities, and the equities will attract capital flows, which will also flow into Bitcoin. Companies that create digital monetary instruments, the instruments that will be on top of digital credit, they will have equity as well, and they will attract capital flows into the ecosystem. We think that the economy will grow if we actually create credit instruments, money instruments, currency instruments, and equity instruments, all of them that are tied in or either backed by BTC or tied into the Bitcoin ecosystem. That was an example of the first of what I think will be many digital money instruments.