Strategy announces Q1 financial report: net loss of 12.54 billion USD, holding approximately 818,000 bitcoins

Strategy released its Q1 2026 financial report. As of May 3, 2026, Strategy holds 818,334 bitcoins, a year-to-date increase of 22%, achieving a bitcoin return of 9.4%, with the dollar value of the bitcoins gained from the increase amounting to approximately $4.97 billion. The company has raised over $11.6 billion through its market issuance program and digital credit product STRC, of which STRC has grown 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, becoming 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 has been held by multiple corporate treasuries and decentralized finance protocols.

In the first quarter, the company's total revenue was $124.3 million, a year-on-year increase of 11.9%, 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, leading to an operating loss of $14.47 billion and a net loss of $12.54 billion, resulting in 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 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 from the increase, aim to measure the thickening 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 bitcoin market being in a bear market, traditional financial institutions are still accelerating their layout.