The world’s largest corporate holder of Bitcoin (BTC), Strategy, released its Q1 2026 financial results yesterday, reporting a net loss of $12.54 billion.
The company attributed most of the loss to an unrealized $14.46 billion decline tied to weak Bitcoin prices in the early months of 2026.
Losses Mount, But Accumulation Continues
Operating loss for the quarter totaled $14.47 billion, compared with $5.92 billion in the prior year. The loss attributable to common stockholders was $12.77 billion, or $38.25 per diluted share, versus $4.23 billion a year earlier.
Excluding Bitcoin accounting effects, Strategy’s core software business remained relatively stable. Total revenue grew 11.9% year-over-year to $124.3 million, while gross profit reached $83.4 million.
Despite the accounting losses, Strategy continued to add to its Bitcoin holdings during the quarter. The company purchased 89,599 BTC in Q1, bringing total holdings to 818,334 BTC, a roughly 22% increase year-to-date.
Strategy has raised nearly $12 billion through capital markets activity in 2026, including $7.37 billion in the first quarter via its at-the-market offering program across common shares and preferred stock instruments.
The company emphasized the growth of its preferred equity program. STRC, Strategy’s variable-rate preferred stock, has expanded to $8.5 billion in notional value within nine months—a size the company describes as the largest preferred stock by market capitalization in the world.
According to CFO Andrew Kang, cumulative dividends declared and paid across all instruments have surpassed $693 million, with 23 consecutive distributions to date.
The Bitcoin Sale Question
One notable moment from the earnings call was Executive Chairman Michael Saylor’s remark that Strategy might sell some Bitcoin to cover dividend obligations.
“We will probably sell some Bitcoin to pay a dividend just to inoculate the market and send the message that we did it,” he said.
The comment drew attention because Saylor has long promoted Bitcoin as a near-permanent reserve asset. Analyst Jeff Park, who participated in the call, flagged the statement as potentially more significant than prior company commentary on the topic.
Park also observed that Strategy’s sensitivity to U.S. interest rates has increased, given STRC’s status as a floating-rate instrument, especially considering potential shifts in Federal Reserve leadership and expectations around future rate moves.
Critics have weighed in on Strategy’s financial structure. Bitcoin skeptic Peter Schiff recently suggested STRC resembles a Ponzi-like funding model, arguing that the company lacks significant income outside its software business and relies on issuing new STRC shares to fund dividends.
Strategy has rebutted that characterization, noting its substantial Bitcoin holdings serve as a balance sheet backstop.
Following the earnings release, Strategy’s common shares closed near $187, down about 3.5% in after-hours trading. STRC was trading just under $100 with an effective annualized yield of roughly 11.5%. Bitcoin’s price was around $81,000 at the time of the report.