Strategy Inc (MSTR) books $12.5B Q1 loss while bitcoin stack grows to 818K BTC

Q: How did Strategy Inc (MSTR) perform financially in Q1 2026?

Strategy Inc reported a Q1 2026 net loss of $12.54 billion , or $38.25 per diluted share, mainly due to an unrealized loss on digital assets of $14.46 billion . Total revenues were $124.3 million , up 11.9% year over year, with gross profit of $83.4 million .

Q: How large are Strategy Inc’s bitcoin holdings as of May 3, 2026?

As of May 3, 2026, Strategy Inc held approximately 818,334 bitcoins with an original cost basis of $61.81 billion and a market value of $64.14 billion . This reflects a 22% increase in holdings year to date and supports its Bitcoin Treasury Company strategy.

Q: What revenue trends did Strategy Inc (MSTR) report for Q1 2026?

Strategy’s Q1 2026 total revenues were $124.3 million , up from $111.1 million in Q1 2025, an 11.9% increase. Gross profit rose to $83.4 million with a 67.1% margin, as subscription services grew while product support revenues declined compared to the prior year.

Q: How much capital has Strategy Inc raised in 2026 so far?

Year to date 2026, Strategy Inc reports raising $11.68 billion . This includes aggregate gross proceeds of about $7.37 billion during Q1 2026 and an additional $4.32 billion between April 1 and May 3, 2026 through at-the-market offerings in MSTR, STRC and STRK securities.

Q: What is Strategy Inc’s BTC Yield and BTC $ Gain in 2026 year to date?

Strategy reports a 2026 year-to-date BTC Yield of 9.4% , indicating growth in bitcoin per share metrics. BTC Gain totals 63,410 BTC , and BTC $ Gain is about $4.97 billion , calculated using the company’s methodology based on its bitcoin holdings and market prices.

Q: How significant are preferred equity and dividends for Strategy Inc (MSTR)?

Strategy highlights over $13.5 billion of preferred equity outstanding, including STRC, and cumulative dividends declared and paid on all preferred stock of about $692.5 million . Q1 2026 preferred dividends were $229.5 million , reflecting increasing obligations to preferred investors.

Q: What leverage and liquidity levels does Strategy Inc report at March 31, 2026?

As of March 31, 2026, Strategy held $2.21 billion in cash and cash equivalents and $2.03 million in restricted cash. Long-term debt, net, was about $8.17 billion , with additional current debt of $31.4 million , indicating meaningful leverage alongside large digital asset holdings.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Strategy Inc reported first quarter 2026 results that are dominated by bitcoin mark-to-market swings. For the quarter ended March 31, 2026, operating loss was $14.47 billion, driven by an unrealized loss on digital assets of $14.46 billion, versus $5.91 billion a year earlier. Net loss was $12.54 billion, or $38.25 per diluted share, compared to a net loss of $4.22 billion, or $16.49 per share, in the prior-year period.

Core software and services operations showed modest growth. Total revenues reached $124.3 million, up 11.9% year over year, with gross profit of $83.4 million and a 67.1% gross margin. Subscription services revenue increased while product support declined.

Strategy continues to scale its bitcoin-centric balance sheet and financing strategy. As of May 3, 2026, the company held about 818,334 bitcoins with an original cost basis of $61.81 billion and a market value of $64.14 billion, reflecting a 22% increase in holdings year to date and a 9.4% BTC Yield. Year to date, Strategy reports raising $11.68 billion, including $7.37 billion of aggregate gross proceeds in Q1 2026 and $4.32 billion in Q2-to-date sales under its at-the-market equity offering program.

Positive

Revenue growth and strong gross margin: Q1 2026 total revenues were $124.3 million, up 11.9% year over year, with gross profit of $83.4 million and a 67.1% gross margin.
Expansion of bitcoin holdings and BTC Yield: As of May 3, 2026, Strategy held about 818,334 BTC, a 22% year-to-date increase, and reported a 9.4% BTC Yield and BTC $ Gain of $4.97 billion in 2026 year to date.
Substantial capital raising capacity: The company raised $11.68 billion year to date, including $7.37 billion in Q1 2026 and $4.32 billion early in Q2 via at-the-market offerings across MSTR, STRC and STRK.
Scaling Digital Credit platform: Management reports over $13.5 billion of preferred equity outstanding, STRC gross proceeds of $5.58 billion year to date, and cumulative preferred dividends declared and paid of about $692.5 million.

Negative

Large bitcoin-driven net and operating losses: Q1 2026 operating loss was $14.47 billion, including an unrealized loss on digital assets of $14.46 billion, resulting in a net loss of $12.54 billion versus $4.22 billion a year earlier.
Volatile digital asset values: The fair value of digital assets declined from $58.85 billion at December 31, 2025 to $51.65 billion at March 31, 2026, reflecting bitcoin price movements and contributing to reported losses.
Growing obligations to preferred investors: Series A Perpetual Preferred Stock recorded in mezzanine equity rose to a redemption and liquidation preference of $10.00 billion at March 31, 2026, alongside cumulative preferred dividends of roughly $692.5 million to date.
High leverage alongside bitcoin exposure: Long-term debt, net, stood at about $8.17 billion as of March 31, 2026, adding fixed obligations alongside significant exposure to bitcoin price volatility and fair value accounting impacts.

Insights

Massive bitcoin-driven losses offset by aggressive capital raises and growing BTC stack.

Strategy Inc posted a Q1 2026 operating loss of $14.47 billion, almost entirely from an unrealized loss on digital assets of $14.46 billion. This highlights how fair value accounting for bitcoin can dominate reported earnings, even as the underlying software business remains much smaller in scale.

At the same time, Strategy expanded its bitcoin holdings and funding base. As of May 3, 2026, it held about 818,334 BTC with a market value of $64.14 billion and reports a 9.4% BTC Yield year to date. The company raised $11.68 billion year to date, including $7.37 billion in Q1 and $4.32 billion early in Q2 via at-the-market offerings across instruments such as MSTR and STRC.

These disclosures underscore a model heavily exposed to bitcoin price volatility and ongoing access to equity and preferred markets. Investors reviewing future quarters may focus on how additional bitcoin purchases, Digital Credit issuance, and preferred dividends interact with unrealized gains or losses on digital assets under ASU 2023-08.

Core software revenues grow modestly, but remain overshadowed by bitcoin economics.

Strategy’s operating business delivered Q1 2026 revenues of $124.3 million, up 11.9% from $111.1 million in Q1 2025. Gross profit was $83.4 million with a 67.1% margin, slightly below the prior-year 69.4%, reflecting revenue mix and cost trends across licenses, subscriptions, and support.

The company’s balance sheet shows cash and cash equivalents of $2.21 billion as of March 31, 2026, down modestly from $2.30 billion at year-end 2025, while digital assets at fair value declined from $58.85 billion to $51.65 billion over the same period. Long-term debt stands at about $8.17 billion, and Series A Perpetual Preferred Stock recorded in mezzanine equity increased to $8.98 billion redemption and liquidation value.

Management also highlights Digital Credit scale, with over $13.5 billion of preferred equity outstanding and cumulative preferred dividends of about $692.5 million. Future filings may show how subscription growth, margin trends, and recurring software revenues evolve relative to the much larger bitcoin-driven components of the financial statements.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q1 2026 Revenue: $124.3 million Q1 2026 Gross Profit: $83.4 million Q1 2026 Net Loss: $12.54 billion +5 more

8 metrics

Q1 2026 Revenue $124.3 million Total revenues for the quarter ended March 31, 2026; up 11.9% year over year

Q1 2026 Gross Profit $83.4 million Gross profit with 67.1% gross margin in Q1 2026

Q1 2026 Net Loss $12.54 billion Net loss for the quarter ended March 31, 2026; $38.25 diluted loss per share

Unrealized Loss on Digital Assets $14.46 billion Unrealized loss on digital assets recognized in Q1 2026 operating expenses

Bitcoin Holdings 818,334 BTC Approximate bitcoins held as of May 3, 2026; 22% growth year to date

Digital Assets Fair Value $51.65 billion Carrying value of digital assets at March 31, 2026 under ASU 2023-08

Capital Raised YTD 2026 $11.68 billion Aggregate proceeds year to date 2026 including Q1 and Q2-to-date ATM offerings

Long-term Debt, Net $8.17 billion Long-term debt, net, outstanding as of March 31, 2026

Key Terms

BTC Yield, Digital Credit, at-the-market offering program, Series A Perpetual Preferred Stock, +2 more

6 terms

BTC Yield financial

"BTC Yield: Achieved BTC Yield of 9.4% in 2026 YTD."

BTC yield is the income or return you earn on Bitcoin holdings by lending them, depositing them in interest-bearing accounts, or using them in decentralized finance strategies; it is like collecting rent on a property you own. Investors care because it can boost total returns without selling the asset, but it also introduces extra risks — such as counterparty failure, custody problems, or changes in Bitcoin’s price — that can erase the income.

Digital Credit financial

"Strategy is the dominant issuer of Digital Credit in the world, with over $13.5 billion of preferred equity outstanding"

Digital credit is lending that is originated, approved, disbursed and repaid through electronic channels such as mobile apps, online platforms or digital wallets rather than through paper forms or bank branches. It matters to investors because it can scale faster, cut operating costs and open access to underserved customers, boosting growth potential while changing the company’s risk profile—think of it as replacing a physical storefront with a high-speed online checkout that also shifts who and how reliably pays back.

at-the-market offering program financial

"from the following sales made under its at-the-market offering program ("ATM")"

An at-the-market offering program lets a company sell newly issued shares directly into the open market at current trading prices through a broker, rather than issuing a large block of stock all at once. It matters to investors because it provides the company a flexible way to raise cash over time, which can dilute existing shares gradually and affect earnings per share and stock price depending on how much and when shares are sold—think of it as a faucet the company can open or close to add supply to the market.

Series A Perpetual Preferred Stock financial

"Series A Perpetual Preferred Stock,$0.001 par value; 424,953 and 442,361 shares authorized"

Assumed Diluted Shares Outstanding financial

"“Assumed Diluted Shares Outstanding” refers to the aggregate of the Company's Basic Shares Outstanding"

Assumed diluted shares outstanding is the total number of company shares calculated by assuming all potential new shares from stock options, warrants, convertible debt, and other rights are converted or exercised. Investors use this figure to see how profits and ownership would look if every possible share were issued; it’s like imagining a pizza cut into more slices to understand how much each slice (share of earnings or ownership) would shrink.

ASU 2023-08 regulatory

"the Company has adopted Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets"

An ASU (Accounting Standards Update) is a numbered change issued by the Financial Accounting Standards Board that updates U.S. GAAP rulebooks; “ASU 2023-08” refers to the specific update published in 2023. Investors care because these updates change how companies record or present financial transactions—like a sports rule change that alters how scores are kept—so they can affect reported profits, balance sheet items and ratios used to value and compare companies.

Earnings Snapshot

Revenue: $124.3 million · Guidance included

Q1 2026

Revenue $124.3 million +11.9% year over year

Operating loss $14.47 billion vs $5.92 billion loss in Q1 2025

Net loss $12.54 billion vs $4.22 billion loss in Q1 2025

Diluted loss per share $38.25 vs $16.49 in Q1 2025

Gross margin 67.1% vs 69.4% in Q1 2025

Bitcoin holdings 818,334 BTC 22% growth year to date 2026 as of May 3, 2026

Guidance

Strategy believes it will not have accumulated earnings & profits for U.S. federal income tax purposes for the foreseeable future and expects preferred distributions to be treated as non-taxable return of capital under current expectations.

Understanding 8-K Material Events →

05/05/2026 - 04:15 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________________________________________________

FORM 8-K

________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 5, 2026

________________________________________________________

STRATEGY INC

(Exact name of Registrant as Specified in Its Charter)

________________________________________________________


Delaware	001-42509	51-0323571
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1850 Towers Crescent Plaza Tysons Corner, Virginia		22182
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: 703 848-8600

(Former Name or Former Address, if Changed Since Last Report)

________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

10.00% Series A Perpetual Strife Preferred Stock, par value $0.001 per share

STRF