Strategy Reports $12.5B Net Q1 Loss on Bitcoin Holdings

Highlights:

• Strategy posts $12.5 billion in net losses during this year’s Q1.
• The massive loss was a result of Bitcoin’s price struggles in recent months. 
• Strategy recorded growth in other aspects of its business, including Bitcoin-linked products and the company’s revenue.

Michael Saylor’s Strategy has shared its financial results for the first quarter (Q1) of 2026, and the numbers tell two contrasting stories. On the positive side, the company’s report showed strong interest in its newer Bitcoin (BTC)- linked financial products. On the other hand, the company recorded a significant loss, mainly due to changes in Bitcoin’s market price during the just concluded quarter. 

According to the report, Strategy reported a net loss of $12.54 billion during the quarter. The massive loss was driven by a $14.46 billion unrealized loss on its Bitcoin holdings, following the asset’s recent price struggles. This means that Strategy recorded a loss on paper because of price changes, even though it did not actually sell the assets. This type of loss is very common for companies that hold large amounts of crypto because their financial results always reflect the market movement. 

$MSTR announces Q1 2026 results:
– 818,334 $BTC held
– 9.4% BTC Yield achieved YTD 2026
– $STRC scaled to $8.5 billion in 9 months
– Largest US equity issuer, raised $11.6 billion YTD 2026https://t.co/0vrqUsTGCM

— Michael Saylor (@saylor) May 5, 2026

Demand for Bitcoin-Linked Products Continues to Rise

Strategy stated that its “Digital Credit” product, known as STRC, is gaining traction. Per the company, investors appear to like the product because it trades actively, stays relatively stable, and offers regular returns. So far in 2026, the company has raised roughly $5.6 billion through STRC alone. The product’s daily trading volume also rose from around $375 million, while price swings have remained low. 

Executives described the remarkable growth recorded during Bitcoin’s price dip as a positive sign for the company. They also mentioned that major financial firms, including Morgan Stanley, Goldman Sachs, and Citigroup, are getting more involved in Bitcoin investments through exchange-traded funds (ETFs), custody services, and trading. 

Strategy also reported that it has kept up with its dividend payments on its preferred stock products. Since the beginning of 2025, Strategy has completed 23 payments totaling over $693 million. Strategy said it is now considering paying dividends more frequently. The frequency could be as much as twice a month to make the product more attractive. The company also expects these payments to be treated as a return of capital for tax purposes for many years. This means investors may not pay taxes on them immediately.   

Saylor Hints at Possible Bitcoin Sales as Strategy Reports $12.5B in Net Loss

During Strategy’s earnings call, Saylor confirmed the company’s willingness to sell some of its Bitcoin if needed. Saylor explained that accepting the possibility of Bitcoin sales is not a sign of trouble. Instead, it shows flexibility in how the company manages its finances. Notably, the company holds 818,334 BTC, worth roughly $61.81 billion.  

Saylor stated: 

“The BTC sale isn’t distress, it’s optionality signaling. At elevated mNAV multiples, demonstrating flexibility means each unit of dilution does more work — the capital structure machine is running, not straining.” 

JUST IN: Michael Saylor just said "We'll probably sell some Bitcoin just to inoculate the market."

"If you're a short seller and your thesis is the company has to sell $MSTR to fund the dividend, I would like nothing better than to rip your wings off."

That's a mic drop.🎙️🔥 pic.twitter.com/Sp8jDr4bjp

— BitcoinTreasuries.NET (@BTCtreasuries) May 5, 2026

Meanwhile, Bitcoin is changing hands at approximately $81, 469 following a slight 0.7% jump in the past 24 hours. The asset’s trading volume is $41.14 billion, while its market cap is roughly $1.63 trillion. In the past week and month, BTC’s price has appreciated by 5.4% and 17.9%, respectively. However, the asset remains down 13.9% year-to-date.