MSTR
MicroStrategy Inc.
Is MSTR Halal?
Bitcoin treasury activity dominates the balance sheet; software ratios pass but cryptocurrency and financing treatment remain unresolved.
What You Should Know
Strategy provides enterprise analytics software but holds most of its assets in bitcoin financed partly through debt and preferred securities. Its March 31, 2026 filing reports debt/assets of 15.10%, liquidity/assets of 4.07%, receivables plus cash/assets of 4.29% and disclosed net interest income/revenue of 1.47%. The mechanical ratios pass, but bitcoin classification, leverage and preferred-dividend structures remain methodology-dependent.
⚠️ Concerns
- •Bitcoin represents the dominant asset and its Sharia status is disputed among scholars and methodologies
- •Convertible debt and preferred securities create substantial leverage and fixed-payment obligations
- •Digital-asset price volatility can produce large reported gains and losses unrelated to operating revenue
- •Software, custody, governance, liquidity and market-manipulation risks remain qualitative topics
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
8,196,524 / 54,268,750
2,207,219 / 54,268,750
2,329,476 / 54,268,750
1,824 / 124,300
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 15.10%, liquidity/assets is 4.07% and receivables plus cash/assets is 4.29%, below the examined asset-based limits; bitcoin and preferred-security activity remains methodology-dependent.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 15.10%, liquidity/assets is 4.07% and receivables plus cash/assets is 4.29%, below the examined MSCI total-assets limits; digital-asset activity is not resolved by these ratios.
- Financial
- Pass
- Overall
- Incomplete
The examined financial ratios pass, but digital-asset treasury activity and fixed-payment securities remain unresolved; this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored, and digital-asset activity remains methodology-dependent.
Business-activity disclosure
Strategy provides enterprise analytics software but its balance sheet and strategy are dominated by bitcoin holdings financed partly through debt and preferred securities. Software activity is generally permissible, while bitcoin classification, treasury management, leverage and preferred-dividend structures remain methodology- and scholar-dependent.
Limitation: The filing does not allocate a universal prohibited-revenue numerator for bitcoin-related gains, treasury operations, preferred-stock dividends or software revenue, and digital-asset treatment differs across scholars and standards.
Purification
Strategy discloses net interest income but does not prescribe a scholar-approved purification percentage; bitcoin gains and losses also require a separate scholarly treatment.
Inputs, assumptions and primary sources
- Amounts are USD thousands from Strategy's March 31, 2026 Form 10-Q.
- Debt includes current portion of long-term debt of $31,402 thousand and long-term debt of $8,165,122 thousand; preferred-stock redemption value and operating leases are not counted as debt.
- Cash and cash equivalents are $2,207,219 thousand. No separate interest-bearing securities balance is included; bitcoin is a digital asset, not an interest-bearing security.
- Accounts receivable, net is $122,257 thousand. First-quarter software and services revenue is $124,300 thousand and disclosed net interest income is $1,824 thousand.
- Digital assets of $51,649,675 thousand are excluded from the interest-bearing-securities input and require a separate cryptocurrency analysis.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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