Strategy Q1 financial report: Net loss of $12.54 billion, holding approximately 818k BTC

BlockBeats News, May 6 — Strategy released its Q1 2026 financial report. As of May 3, 2026, Strategy held 818,334 Bitcoins, a 22% increase since the beginning of the year, achieving a Bitcoin return of 9.4%. The Bitcoin USD value gained from the increase in quantity is approximately $4.97 billion. The company has raised over $11.6 billion through market issuance plans and digital credit products STRC, with STRC growing 189% since the start of the year, totaling $5.58 billion in fundraising. Within nine months, its market cap reached $8.5 billion, making it the largest preferred stock by market value globally. STRC’s average daily trading volume is $375 million, with a volatility of only 3%, a Sharpe ratio of 2.53, and it is held by multiple corporate treasuries and decentralized finance protocols.

In the first quarter, the company’s total revenue was $124.3 million, an 11.9% year-over-year increase, with gross profit of $83.4 million and a gross margin of 67.1%. However, due to a significant drop in Bitcoin prices during the period, the company recorded an unrealized loss of $14.46 billion on digital assets, resulting in an operating loss of $14.47 billion, a net loss of $12.54 billion, and a diluted loss per share of $38.25. The company’s cash reserves stand at $2.21 billion, slightly down from the beginning of the year.

Strategy will continue to advance its Bitcoin treasury strategy, planning to increase the dividend payment frequency for STRC to biweekly to enhance liquidity. Future dividends are expected to be treated as tax-free capital returns. The key performance indicators used by the company, such as Bitcoin return and the USD value gained from increased quantity, aim to measure the enhancement of Bitcoin holdings per share, but these indicators do not reflect the fair value changes of digital assets. It should be noted that if convertible debt matures without being converted into stock, the company may be forced to sell Bitcoin or common stock to repay the debt, which does not indicate an active profit-taking intention. Management states that despite the Bitcoin bear market, traditional financial institutions are still accelerating their deployment.