Strategy Posts $12.5 Billion Q1 Loss as Bitcoin Slump Hammers Massive Holdings

In brief

• Strategy reported a $12.54 billion net loss for Q1 2026, almost entirely driven by a $14.46 billion unrealized loss on its Bitcoin holdings.
• The company holds 818,334 BTC worth about $66.8 billion, and has raised $11.68 billion in 2025 to fund further acquisitions.
• MSTR stock has surged 56% over the past month as Bitcoin rebounded and demand grew for its STRC preferred shares.

Strategy Inc., the Bitcoin treasury company that has become the largest corporate holder of the cryptocurrency, reported a net loss of $12.54 billion for the first quarter of 2026—a staggering figure driven almost entirely by a decline in the value of its BTC stockpile.

The company's operating loss for the quarter reached $14.47 billion, compared with $5.92 billion during the same period a year earlier. The bulk of that figure—$14.46 billion—reflects an unrealized loss on its digital assets as Bitcoin prices fell during the quarter.

The losses underscore the razor-thin line Strategy walks as a company whose fortunes are now inextricably tied to the volatile price of a single digital asset. Startegy previously reported a $12.4 billion net loss for Q4 2024.

As of May 3, the company held 818,334 Bitcoin, a 22% increase year to date. That stash currently has a market value of approximately $66.8 billion against an original cost basis of $61.81 billion, with an average purchase price of roughly $75,537 per coin. Bitcoin recently traded at about $81,600, and hit its highest price on Tuesday since January following a monthslong slump across the crypto market.

Despite the paper losses, Strategy's leadership pointed to what they characterized as progress on multiple fronts. The company has raised $11.68 billion year to date to fund its Bitcoin acquisitions, and its newer preferred equity instrument, STRC, has raised $5.58 billion—a 189% increase year over year.

“Adoption of Bitcoin continues to grow in 2026,” said Strategy President and CEO Phong Le, in a statement. “Digital credit, highlighted by STRC, has been a big success. STRC has shown strong demand, high liquidity, and low volatility. 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.”