Microstrategy Inc. - Ordinary Shares - Class A

Record operating momentum + strong coverage of dividends - Q2 2026 delivered record total investment income of $149.1M and record net investment income (NII) of $92.9M (=$0.50/share). - NII covered the quarterly base distribution by 125%; including the $0.07 supplemental distribution, total distribution coverage was 106%. - A key driver: elevated prepayment activity—early loan repayments were $572.1M, above the upper end of guidance, and largely tied to M&A/balance sheet cash.

Scale + underwriting discipline, with portfolio diversification maintained - First half 2026: record originations of $2.74B (+35.6% YoY) and record fundings of $1.35B (+8.5% YoY). - Platform scale: managing about $6.1B AUM (+14.4% YoY), with ~87% first-lien exposure and strong diversification (~50% life sciences / ~50% tech, no single sub-sector >25%). - Credit/underwriting approach remained disciplined and conservative, emphasizing quality over chase as some lenders become “aggressive” on deal structures.

Credit quality: broadly stable, but watch Grade 3 and small rise in non-accrual - Weighted average internal credit rating was 2.17 (slightly up from 2.11), still within normal historical range. - Mix changes: Grade 1–2 decreased to 65.4% (from 70.5%), Grade 3 increased to 32.7% (from 28.6%), and Grade 4 increased to 1.8% (from 0.8%); Grade 5 remained 0.1%. - Non-accrual: increased by one to two loans, representing about 0.3% at cost / 0.1% at fair value—still very small in size. - PIK improving: PIK declined to ~8.3% of total revenue (from 9.1% in Q1); most PIK is “by design,” and management noted cash interest is being paid (excluding a single convertible loan).