Strategy posts $12.54B Q1 loss on bitcoin valuation
Strategy reported a $12.54 billion Q1 2026 net loss after $14.46 billion in unrealized bitcoin losses as its bitcoin holdings grew to 818,334 BTC.
Strategy Inc. (Nasdaq: MSTR) reported a $12.54 billion net loss for the first quarter of 2026 on May 5. The company recorded $14.46 billion in unrealized bitcoin valuation losses as its bitcoin treasury expanded to 818,334 BTC.
Revenue for Q1 rose 11.9% year over year to $124.3 million. Operating loss widened to $14.47 billion, driven principally by the unrealized digital asset losses. The quarter ended May 3, the company reported.
Strategy increased its bitcoin position and raised $11.68 billion year to date to finance purchases. Capital markets activity included at-the-market offerings that generated $7.37 billion in the first quarter and $4.32 billion between April 1 and May 3.
The company’s perpetual preferred, STRC, raised $5.58 billion year to date and had about $8.54 billion in notional value. STRC traded near $99.96 with an 11.50% yield. Strategy reported average daily STRC trading of $381.1 million, 3.1% trading volatility and a 4.2x BTC rating.
As of May 3, Strategy reported an original bitcoin cost basis of $61.81 billion and a market value of $64.14 billion. The company listed a 9.4% bitcoin yield, a year-to-date gain of 63,410 BTC and $4.97 billion in dollar gains on its BTC position, while noting those metrics are not standard measures of performance or liquidity.
About $150 million of STRC is held in corporate treasuries and more than $270 million is held across decentralized finance protocols. Cumulative dividends declared and paid on the company’s preferred stock totaled $692.5 million. Strategy proposed moving STRC dividend payments to a semi-monthly schedule.
CEO Phong Le commented, “Adoption of bitcoin continues to grow in 2026. Digital Credit, highlighted by STRC, has been a big success.” Executive Chairman Michael Saylor said the firm engineered a credit instrument tied to bitcoin performance and cited a 2.53 Sharpe ratio for the product.
The company stated its preferred and common stock financing program remains a primary source of funds for additional bitcoin purchases.
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