Strategy Q1 Financial Report: Net Loss of $12.54 Billion, Holds Approximately 818,000 Bitcoins

On May 6, Strategy released its Q1 financial report for 2026, stating that as of May 3, 2026, it holds 818,334 bitcoins, a 22% increase year-to-date, achieving a bitcoin return of 9.4%, with the dollar value of the additional bitcoins amounting to approximately $4.97 billion. The company has raised over $11.6 billion through its market issuance program and digital credit product STRC, which has grown by 189% since the beginning of the year, with total fundraising reaching $5.58 billion and a market capitalization of $8.5 billion within nine months, 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% and a Sharpe ratio of 2.53, and it has been held by several corporate treasuries and decentralized finance protocols. In the first quarter, the company’s total revenue was $124.3 million, an 11.9% year-on-year increase, with a 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 on digital assets of $14.46 billion, resulting in an operating loss of $14.47 billion and a net loss of $12.54 billion, with 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 plans to continue advancing its bitcoin treasury strategy and aims to increase the dividend payment frequency of STRC to bi-weekly to enhance liquidity, with future dividends expected to be treated as tax-exempt capital returns. The key performance indicators used by the company, such as bitcoin return and the dollar value of bitcoins gained due to quantity increase, are intended to measure the enhancement effect of bitcoin holdings per share, but these indicators do not reflect changes in the fair value of digital assets. It is important to note that if future convertible debt matures without being converted into stock, the company may be forced to sell bitcoins or common stock to repay the debt, which does not indicate a proactive desire to realize profits. Strategy’s management stated that despite the bear market in bitcoin, traditional financial institutions are accelerating their positioning.