Q1 Earnings Report: Net Loss of $12.54 Billion, Holding Approximately 818,000 Bitcoins

May 6 — Strategy today released its Q1 2026 financial report, highlighting key updates on its Bitcoin holdings, STRC digital credit product, and quarterly performance. As of May 3, 2026, the company holds 818,334 bitcoins—an 22% year-to-date (YTD) increase. Its realized Bitcoin return rate stands at 9.4%, with quantity-driven dollar gains from Bitcoin holdings totaling approximately $49.7 billion. Strategy has raised over $116 billion via market-price share issuances and its STRC digital credit product. STRC has seen 189% YTD growth, with $55.8 billion in total fundraising. In just nine months, STRC’s market capitalization has hit $85 billion, making it the world’s largest preferred stock by market cap. The product boasts a daily average trading volume of $375 million, volatility of only 3%, and a Sharpe ratio of 2.53—holding positions in corporate treasuries and decentralized finance (DeFi) protocols. For Q1, total revenue reached $12.43 billion (up 11.9% year-over-year), with gross profit of $8.34 billion and a gross margin of 67.1%. However, a sharp Bitcoin price drop during the quarter led to an unrealized digital asset loss of $14.46 billion, resulting in an operating loss of $14.47 billion, net loss of $12.54 billion, and diluted loss per share of $38.25. Cash reserves total $2.21 billion, a slight YTD decline. Looking ahead, Strategy will continue advancing its Bitcoin treasury strategy. It plans to increase STRC’s dividend payment frequency to bi-monthly to enhance liquidity, with future dividends expected to be treated as tax-free capital returns. The company notes its key metrics (Bitcoin return rate, quantity-driven dollar gains) measure Bitcoin per-share dilution but do not reflect digital asset fair value changes. A risk note: If future convertible debt is not converted to stock at maturity, Strategy may be forced to sell Bitcoin or common stock to repay obligations—this is not intended as profit-taking. Management added that despite a bearish Bitcoin market, traditional financial institutions are accelerating their deployments.