Strategy Inc Reports $12.54 Billion Q1 Net Loss Driven by Digital Asset Valuation, Raises $11.69 Billion YTD

summarizeSummary

Strategy Inc reported a $12.54 billion net loss for Q1 2026, largely due to unrealized digital asset losses, but successfully raised $11.69 billion year-to-date through ATM offerings to expand its Bitcoin treasury.

check_boxKey Events

• Significant Q1 Net Loss

  Strategy Inc reported a net loss of $12.54 billion for the first quarter of 2026, a substantial increase from $4.22 billion in Q1 2025. Diluted loss per common share was $(38.25), primarily driven by a $14.46 billion unrealized loss on digital assets.

• Massive Capital Raise YTD

  The company raised an aggregate of $11.69 billion in gross proceeds year-to-date 2026 through its at-the-market (ATM) offerings, including $7.37 billion in Q1 and an additional $4.32 billion between April 1 and May 3, 2026. This capital was sourced from sales of MSTR common stock, STRC, and STRK preferred stock.

• Increased Bitcoin Holdings

  As of May 3, 2026, Strategy Inc holds 818,334 bitcoins, representing a 22% growth year-to-date. The average cost per bitcoin is approximately $75,537, with a market price of $78,374 as of May 1, 2026.

• Digital Credit (STRC) Success

  The Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) raised $5.58 billion year-to-date 2026 and has scaled to an $8.5 billion market cap, becoming the largest preferred stock globally. The company also proposed a shareholder vote to double STRC's dividend payment frequency to semi-monthly.

auto_awesomeAnalysis

Strategy Inc reported a substantial net loss of $12.54 billion for Q1 2026, primarily due to a $14.46 billion unrealized loss on its digital assets. Despite this, the company successfully raised an aggregate of $11.69 billion year-to-date through its at-the-market (ATM) offerings of common stock and preferred stock, demonstrating strong market demand for its securities. This capital was used to significantly increase its Bitcoin holdings to 818,334 BTC, a 22% growth year-to-date. The filing also highlights the success of its Digital Credit instrument, STRC, which raised $5.58 billion YTD and is now the largest preferred stock by market cap globally. While the large unrealized loss is a negative financial outcome, the company's continued ability to raise substantial capital and execute its Bitcoin acquisition strategy is a critical factor for its business model.