Strategy reported a $12.54 billion net loss for the first quarter of 2026, as massive mark-to-market pressure on its bitcoin holdings overshadowed growth in its operating business. The company said $14.46 billion in unrealized digital asset losses weighed heavily on results, while quarterly revenue still increased 11.9% year over year to $124.3 million.
Bitcoin volatility dominated quarterly results
The latest earnings report underscored the trade-off embedded in Strategy’s bitcoin treasury model. Rather than a deterioration in its core operations, the quarter was defined by balance-sheet volatility linked to its large BTC exposure. The company said digital asset revaluation losses pushed operating loss to $14.47 billion, highlighting how quickly earnings can swing when bitcoin prices move sharply. For investors using Strategy as a proxy for bitcoin exposure, the quarter offered another reminder that reported profit can be driven more by crypto market pricing than by software revenue.
Capital markets remain central to expansion
Despite the headline loss, Strategy continued to scale its bitcoin strategy through aggressive fundraising. The company said it had raised $11.68 billion year to date, including $5.58 billion through STRC. During the first quarter, it raised $7.37 billion through at-the-market offerings, followed by another $4.32 billion between April 1 and May 3. Proceeds from Class A common stock, STRC, and STRK offerings were used to support additional bitcoin purchases.
STRC remained a central funding instrument. According to the report, STRC traded at $99.96, carried an 11.50% yield, and had a notional value of $8.54 billion. Strategy also said cumulative dividends declared and paid through its preferred shares reached $692.5 million, while demand for STRC remained strong, supported by liquidity and relatively lower volatility.
Holdings rise to 818,334 BTC
As of May 3, Strategy’s bitcoin had an original cost basis of $61.81 billion and a market value of approximately $64.14 billion. The company reported a year-to-date BTC yield of 9.4%, a gain of 63,410 BTC, and $4.97 billion in BTC dollar gain. At the same time, management noted that these KPIs should not be viewed as traditional measures of performance, valuation, liquidity, or return.
The report also noted that after a total of 108 purchases, Strategy’s bitcoin holdings had reached 818,334 BTC, and the company had paused its weekly buying activity. Executive Chairman Michael Saylor said the firm had engineered a credit instrument by separating bitcoin performance from price stability. The broader picture remains unchanged: Strategy is continuing to expand its bitcoin exposure through financing, while accepting increasingly volatile earnings as part of that model.