Strategy Reports $12.54B Q1 Net Loss on Bitcoin

Strategy, the world's largest corporate holder of Bitcoin, reported a net loss of $12.54 billion for the first quarter of 2026, ended March 31, driven primarily by a $14.46 billion unrealized loss on its cryptocurrency holdings amid a sharp decline in Bitcoin prices.

The technology company, which provides enterprise analytics software and has pivoted heavily toward Bitcoin treasury management, posted an operating loss of $14.47 billion, up from $5.92 billion in the year-ago period. Revenue increased 11.9 percent to $124.3 million, with gross profit at $83.4 million and a gross margin of 67.1 percent, reflecting steady performance in its core software business. Cash and equivalents stood at $2.21 billion at quarter end, down slightly from $2.30 billion at the end of 2025.

Bitcoin prices fell more than 23 percent during the quarter, dropping from about $87,000 on January 1 to roughly $68,000 by March 31, before rebounding above $80,000 in early April. Strategy acquired approximately 89,600 Bitcoin in the period at an average price of about $80,900, bringing its total holdings to 818,334 Bitcoin as of May 3. The average acquisition cost across all holdings is $75,537 per Bitcoin,...