Strategy Inc., the software-company-turned-largest-corporate-Bitcoin-holder, reported a $12.54 billion net loss for the first quarter of 2026.
The headline number is driven by a $14.46 billion unrealized loss on digital assets, reflecting Bitcoin’s 23% decline during the quarter. That translates to a diluted loss of $38.25 per share. Strategy holds approximately 818,334 Bitcoins, about 3.9% of all Bitcoin in existence, with an average cost basis of roughly $75,500 per coin. Bitcoin's market price hovered near $78,400 as of early May.
Strategy raised $7.37 billion through at-the-market equity offerings in Q1 alone, and another $4.32 billion between April 1 and early May, nearly $12 billion in four months.
The company’s preferred equity instrument, STRC, launched nine months ago, has grown to an $8.5 billion market capitalization. It pays an annualized dividend that rose from 11% in January to 11.5% by March. Strategy has met 23 consecutive dividend distributions totaling over $693 million.
The software business contributed $124.3 million in Q1 revenue, up about 12% year over year, with gross margins at 67%.
Strategy accounted for 97.5% of net new corporate Bitcoin purchases as of January 2026. For every dollar other companies invested in Bitcoin for their treasuries, Strategy invested roughly $39. More than 140 companies now hold Bitcoin on their balance sheets.
CEO Phong Le noted a broader institutional wave, with Morgan Stanley, Goldman Sachs, and Citi all announcing Bitcoin ETF, trading, custody, or lending services.
Strategy carries approximately $8.2 billion in total debt, with $6 billion in convertible notes collateralized by Bitcoin. The company held $2.21 billion in cash at quarter’s end. The favorable tax treatment of its preferred equity dividends as non-taxable return of capital is a key item to watch.