Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Strategy Inc. (MSTR) Halal?

FAIL

Strategy Inc. · NASDAQ: MSTR · Technology

The short answer

No — Strategy Inc. (NASDAQ: MSTR) does not pass this Shariah stock screen. Its bitcoin-treasury business (~845,000 BTC, plus a small enterprise-analytics software unit) has no prohibited lines, and its $8.2B of convertible notes are about 13.29% of its ~$61.67B market cap (about 27.86% including the fixed-coupon perpetual preferred stock) — both under the ~33% ceiling. But interest earned on its $2.1B USD Reserve (money-market funds) is at least $16.9M against Q1 2026 revenue of $124.3M — at least 13.59% of revenue, over the 5% non-compliant income ceiling. Zoya covers MSTR and states it is Shariah-compliant per its AAOIFI-based review; Musaffa's academy material also screened it as passing, while stricter AAOIFI implementations reject crypto-treasury companies — scholars differ on cryptocurrency. No ShariaPortfolio entry was found. This is a factual screen, not a religious ruling.

Gate 1 — Business activity: PASS

Strategy Inc. (NASDAQ: MSTR), renamed from MicroStrategy Incorporated in 2025, describes itself in its 10-Q as the world's first and largest Bitcoin Treasury Company, with a remaining enterprise-analytics software business (AI-powered analytics, ~1,511 employees). It holds bitcoin as its primary treasury reserve asset — 762,099 BTC at March 31, 2026 (Q1 10-Q), 818,334 BTC at April 26, 2026 ($64.04B at $78,258/BTC), 843,775 BTC at July 26, 2026 (Q2 results), 845,050 BTC at August 30, 2026 (Form 8-K) — funded via at-the-market common/preferred stock issuance and convertible notes, held unencumbered with Coinbase Custody, Anchorage Digital, and Fidelity Digital Assets. Software revenue was $124.3M in Q1 2026 ($122.4M in Q2 2026). None of the disclosed lines — bitcoin treasury operations, enterprise analytics software — are prohibited lines (no alcohol, gambling, pork, tobacco, cannabis, conventional banking/insurance, or adult entertainment). Note on competing positions: Zoya (AAOIFI-based) rates MSTR compliant and Musaffa's academy material screened it as passing, while stricter AAOIFI implementations following Mufti Taqi Usmani's public ruling against cryptocurrency reject crypto-treasury companies including Strategy — scholars differ, and this screen issues no ruling. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per the Q1 2026 10-Q (March 31, 2026): current portion of long-term debt $31,402k plus long-term debt, net $8,165,122k = about $8.197B of convertible notes (2028–2032 tranches). Against a market cap of about $61.67B (October 1, 2026, stockanalysis.com), debt ÷ market cap is about 13.29%, below the ~33% ceiling (robust to the Oct 2 quote variant of ~$58.8B, which gives ~13.9%). Including the perpetual preferred stock — mezzanine equity $8,984,928k (redemption/liquidation value $10,004,676k), paying fixed coupons (STRF 10%, STRC variable ~12%, STRK 8%, STRD 10%; ~$400.7M quarterly dividends) — combined debt-like obligations are about $17.18B ≈ 27.86% of market cap (29.51% at redemption value), still under the ceiling on verified filing figures. Cash of $2,207M ≈ 3.58% of market cap. Caveat: on the July 30, 2026 earnings call the company stated converts of $6.7B and preferred equity of $15.4B (~$22.1B combined ≈ 35.9% of market cap, above the ceiling) — a live monitoring point, but those are call figures, not the 10-Q balance sheet. Gate 2 passes on the verified figures. Facts only.

Gate 3 — Non-compliant income: FAIL

The Q1 2026 10-Q income statement discloses only a net line — 'Interest income (expense), net' of $1,824k — so gross interest income is not separately stated. But the MD&A interest table breaks it into $15,072k of convertible-note interest expense plus 'Other interest (income) expense, net' of ($16,896)k, which the filing says is substantially interest earned on the $2.14B USD Reserve (money-market funds, established December 2025), partially offset by interest expense on long-term debt. Because the offset is an expense (non-negative), gross interest income is at least $16,896k — a verified lower bound from the primary filing, not an estimate. Against Q1 2026 revenue of $124,300k, non-compliant income is at least 13.59% of revenue, above the 5% ceiling — the income gate fails regardless of the undisclosed offset. (Zoya cites $0 interest income for FY2025, before the USD Reserve existed; the reserve grew to $3.75B by July 26, 2026.) Gate 3 fails. Facts only.

Key figures used

Frequently asked questions

What does Strategy (MicroStrategy) do?

Strategy Inc. (NASDAQ: MSTR), renamed from MicroStrategy Incorporated in 2025, describes itself in its SEC filings as the world's first and largest Bitcoin Treasury Company, plus a remaining enterprise-analytics software business (AI-powered analytics, ~1,511 employees). It holds roughly 845,000 bitcoins as a treasury reserve asset (762,099 BTC at March 31, 2026 per its Q1 2026 10-Q; 845,050 BTC at August 30, 2026 per a Form 8-K), funded through at-the-market common and preferred stock issuance and convertible notes. Software revenue was $124.3M in Q1 2026 ($122.4M in Q2 2026). The bitcoin is held unencumbered with custodians (Coinbase Custody, Anchorage Digital, Fidelity Digital Assets) and carried at fair value on the balance sheet. None of the disclosed business lines are prohibited lines like alcohol, gambling, pork, tobacco, or conventional banking.

Why does Strategy fail this Shariah stock screen?

Strategy fails this Shariah stock screen on the non-compliant income gate. Gate 1 (business activity) passes: a bitcoin treasury plus enterprise software is not a prohibited line. Gate 2 (debt) passes on verified Q1 2026 10-Q figures: $8.20B of convertible notes is about 13.29% of the ~$61.67B market cap, and even including the $8.98B perpetual preferred stock (fixed 8-12% coupons) the combined $17.18B is about 27.86% — under the ~33% ceiling. But Gate 3 fails: the Q1 2026 10-Q MD&A discloses $16,896k of other interest (income), net — substantially interest earned on its $2.14B USD Reserve (money-market funds), net of offsetting interest expense — so gross interest income is at least $16,896k, which is at least 13.59% of Q1 2026 revenue ($124.3M), above the 5% ceiling. Note: company-stated Q2 2026 figures (July 30, 2026 earnings call) put converts at $6.7B and preferred equity at $15.4B (~35.9% combined), above the ceiling — worth monitoring, but not from the 10-Q balance sheet. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Strategy's interest-bearing debt ratio?

Per Strategy's Q1 2026 Form 10-Q (quarter ended March 31, 2026): current portion of long-term debt $31,402k plus long-term debt, net $8,165,122k = about $8.197B of convertible notes (2028-2032 tranches). Against a market cap of about $61.67B (October 1, 2026, per stockanalysis.com), debt ÷ market cap is about 13.29% — below the ~33% ceiling. Including the perpetual preferred stock (mezzanine equity $8,984,928k, redemption value $10,004,676k — fixed coupons of 10% STRF, ~12% variable STRC, 8% STRK, 10% STRD), combined debt-like obligations are about $17.18B, or 27.86% of market cap (29.51% at redemption value) — still under the ceiling on the verified filing figures. Cash and cash equivalents of $2,207M are about 3.58% of market cap. Caveat: on the July 30, 2026 earnings call the company stated converts of $6.7B and preferred equity of $15.4B (~$22.1B combined, ~35.9% of market cap) — above the ceiling, but those are call figures, not the 10-Q balance sheet. Facts only.

What is Strategy's non-compliant income ratio?

The Q1 2026 10-Q income statement reports only a net line, 'Interest income (expense), net' of $1,824k — gross interest income is not separately disclosed. However, the MD&A interest-expense table breaks out $15,072k of convertible-note interest expense plus 'Other interest (income) expense, net' of ($16,896)k, which the filing says is substantially interest earned on the USD Reserve (money-market funds), partially offset by interest expense on long-term debt. Since the offset is expense (non-negative), gross interest income is at least $16,896k — a verified lower bound from the primary filing, not an estimate. Against Q1 2026 revenue of $124,300k, non-compliant income is at least 13.59% of revenue — above the 5% ceiling, so the income gate fails regardless of the undisclosed offset. For context, Zoya reports $0 interest income for FY2025 (before the USD Reserve was established in December 2025); the reserve stood at $2.14B at March 31, 2026 and grew to $3.75B by July 26, 2026. Facts only.

Do Zoya, Musaffa, or ShariaPortfolio cover Strategy?

Zoya covers MSTR at zoya.finance/stocks/mstr: its page's primary answer states MSTR is Shariah-compliant under its AAOIFI-based review (based on most recent financial reports), though the page's auto-generated FAQ variants are internally contradictory, so the rating is reported as found, with that caution. Zoya's page also cites FY2025 annual figures of $477,233,000 revenue and $0 interest income. Musaffa: Musaffa's own academy site (academy.musaffa.com) published an AAOIFI screening of MicroStrategy showing business activity, interest-bearing securities, and interest-bearing debt all passing — i.e., screened as halal to own at that time (September 2025). Competing position reported factually: a separate AAOIFI implementation (invest-like.com) rejects crypto-treasury companies including 'Strategy formerly MicroStrategy' per Mufti Taqi Usmani's public ruling against cryptocurrency — scholars differ on crypto, and this page issues no ruling. ShariaPortfolio: no MSTR entry was found in search — honestly reported as absent, not invented. This page applies the screen directly from Strategy's SEC filings.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).