TL;DR:
- Strategy closed the first quarter of 2026 with a net loss of $12.54 billion, equivalent to $38.25 per diluted share.
- The company’s total revenue rose to $124.3 million, representing an 11.9% increase compared to the previous year.
- As of May 3, 2026, the company holds 818,334 BTC acquired at an average price of $75,537 per unit.
According to recently published financial results, the first quarter of 2026 closed with a net loss of $12.54 billion for the technology firm Strategy. This red balance is primarily due to the extreme volatility of digital assets during the first three months of the year.
The loss per share stood at $38.25. This figure exceeded market analysts’ projections, who had estimated an average loss of $18.98 per share, evidencing a greater impact than expected by the market.
The crypto market depreciation was the determining factor. According to report data, Bitcoin experienced a drop of more than 23% between January and March 2026, marking its worst start to a year since 2018.
This bearish environment coincided with complex macroeconomic factors. Reports indicate that the implementation of a 15% global tariff by the Trump administration and escalating military tensions between the United States and Iran increased risk aversion on Wall Street.
Impact of Digital Asset Accounting and Bitcoin
The firm’s operating loss reached $14.47 billion in the period analyzed. In contrast, during the same quarter of 2025, the operating loss figure was $5.92 billion.
Digital asset accounting absorbed the direct financial hit. The company recorded an unrealized loss of $14.46 billion on its cryptocurrency holdings, according to the first-quarter financial breakdown.
Despite the red numbers in terms of net profit, operating revenues showed resilience. Revenue rose to $124.3 million compared to $111.1 million in the previous year, driven by its core software services.
The gross margin stood at 67.1%. Although the figure is solid, it reflects a slight decrease from the 69.4% reported in the first quarter of 2025.
The company’s cash reserves suffered a minor contraction. As of March 31, 2026, Strategy had $2.21 billion in cash, a moderate reduction compared to the $2.30 billion recorded at the end of December 2025.
Under the management of its founder, Michael Saylor, the firm did not stop its accumulation strategy. During the quarter, Strategy acquired approximately 89,600 BTC worth $5.5 billion, one of its largest historical quarterly purchases.
As of May 1, 2026, the market value of its Bitcoin treasury was $64.14 billion. Based on a price of $78,374 per coin, the company maintains an unrealized gain of approximately $2.3 billion over its total cost basis.
Digital Credit Instruments and STRC Financing
The company’s CEO, Phong Le, highlighted to investors the success of its digital credit instrument, STRC. According to his statements, this mechanism has raised $5.6 billion so far in 2026.
The daily liquidity of this instrument reached $375 million. Phong Le indicated that STRC volatility remained at 3%, even during the bear market that affected the underlying asset.
CFO Andrew Kang described the company as the dominant global issuer of digital credit. The executive reported that they have more than $13.5 billion in outstanding preferred shares, backed by their Bitcoin balance sheet.
The financing strategy is also supported by at-the-market (ATM) offering programs. During the first quarter of 2026, the company obtained $7.37 billion in gross proceeds through these sales, adding another $4.32 billion between April and early May.
Heading into the close of the second quarter, Strategy reported a Bitcoin yield (BTC Yield) of 9.4% year-to-date. Upcoming SEC compliance reports will detail whether the company resumes its buying pace following the pause observed in late April.
