Strategy Inc reported a net loss of $12.54 billion for the first quarter of 2026, driven mainly by unrealized losses on its bitcoin holdings. The company also confirmed that it now holds 818,334 BTC, making it the largest corporate holder of bitcoin.
The results highlight a sharp contrast between operating growth in parts of the business and volatility in its core treasury strategy.
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Bitcoin holdings expand despite quarterly loss
Strategy’s bitcoin holdings reached 818,334 BTC, a 22% increase year to date. The company valued its digital assets at $64.14 billion, compared with a cost basis of $61.81 billion.
The firm’s average acquisition price stood at approximately $75,537 per bitcoin, while recent market prices placed BTC near $78,374 at the time of reporting. That gap placed Strategy in a narrow zone between paper gains and losses depending on intraperiod price movement.
Bitcoin remained central to the company’s financial structure, with treasury performance driving both gains and losses across reporting periods.
Large unrealized loss drives quarterly results
The company posted an operating loss of $14.47 billion for the quarter, compared with $5.92 billion a year earlier. Nearly the entire figure came from a $14.46 billion unrealized loss tied to digital asset valuation changes.
Net loss attributable to common shareholders reached $12.77 billion, compared with $4.23 billion in the prior-year period. The result translated to $38.25 per diluted share.
Despite the losses, Strategy reported revenue of $124.3 million, an 11.9% year-over-year increase. Gross profit reached $83.4 million, reflecting a 67.1% margin.
Cash and cash equivalents stood at $2.21 billion at the end of March, slightly below the previous quarter’s level.
Capital markets activity supports bitcoin accumulation
Strategy raised $11.68 billion year to date through its capital markets programs, reinforcing its position as a leveraged bitcoin accumulator. The company also generated $7.37 billion in gross proceeds during the first quarter alone, followed by an additional $4.32 billion early in the second quarter.
A significant portion of that funding came from its preferred equity instruments, particularly STRC. The company raised $5.58 billion through STRC year to date, a 189% increase compared with the previous year.
STRC now represents a central funding mechanism for bitcoin purchases. The instrument has grown rapidly since launch, reaching $8.5 billion in market capitalization within nine months.
STRC model expands digital credit strategy
Strategy executives described STRC as a core part of its “digital credit” framework, designed to extract performance from bitcoin while maintaining structured yield instruments for investors.
“We raised $5.6 billion year-to-date of STRC gross proceeds, increased daily trading volume to $375 million, while bringing volatility down to 3%, all done during a bitcoin bear market,” said Phong Le, President and CEO.
Chief Financial Officer Andrew Kang said STRC delivered $692.5 million in cumulative dividends across preferred stock products since early 2025. The company has completed 23 consecutive dividend payments.
Strategy also reported a BTC Yield of 9.4% year to date and a BTC $ Gain of approximately $4.97 billion. These internal metrics measure bitcoin accumulation efficiency relative to share dilution and capital structure changes.
Dividend funding debate and bitcoin monetization
The company’s evolving capital strategy includes a shift toward potential bitcoin sales to fund dividend obligations.
Founder and Executive Chairman Michael Saylor stated that Strategy may sell bitcoin selectively to support its STRC dividend structure.
“We'll probably sell some bitcoin to fund the dividend, just to inoculate the market, just to send the message that we did it,” Saylor said.
That comment marked a departure from the company’s earlier stance of never selling bitcoin, a position that had become central to its corporate identity.
Strategy also confirmed that it may fund dividends through bitcoin sales if necessary, while continuing to target higher bitcoin-per-share growth.
Software business remains steady
Despite the scale of its bitcoin exposure, Strategy’s enterprise analytics segment continued to generate stable results. Revenue growth and gross margin stability suggested that the software division maintained operational consistency amid broader volatility.
Total revenues reached $124.3 million for the quarter, with gross profit margins holding above 67%.
Market positioning and investor focus
Strategy’s dual structure as both a software company and bitcoin treasury vehicle continues to define its market profile. The company now holds nearly 3.9% of total bitcoin supply.
Investors continue to track bitcoin-per-share metrics and capital raising activity alongside traditional financial results. Strategy’s dashboard and disclosures remain central to tracking these metrics in real time.
The company indicated that it will continue expanding its bitcoin position through a combination of equity issuance, preferred stock instruments, and selective capital deployment.
Tanya Petrusenko
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