The stock will trade on bitcoin's price direction, not on software earnings. The $14.46B unrealized loss reflects bitcoin's decline from ~$93K at Dec 31, 2025 to ~$68K at Mar 31, 2026. Monitor bitcoin price recovery and continued STRC demand as the primary catalysts. The $2.21B cash reserve provides ~2.5 years of dividend coverage, reducing near-term distress risk.
Price Chart
Executive Summary
Strategy Inc reported Q1 2026 revenue of $124.3M (+11.9% YoY), but posted a GAAP net loss of $12.54B ($38.25/share) driven by a $14.46B unrealized loss on its bitcoin holdings. The company raised $7.37B in Q1 via ATM offerings, grew bitcoin holdings 22% YTD to 818,334 BTC, and achieved a 9.4% BTC Yield. The massive unrealized loss from bitcoin's price decline overshadows the software revenue growth and capital-raising success.
Key Financial Metrics
Key Facts
- Q1 2026 total revenue $124.3M, +11.9% YoY from $111.1M
- GAAP net loss $12.54B ($38.25/share diluted) vs $4.22B ($16.49/share) YoY
- Unrealized loss on digital assets $14.46B in Q1 2026 vs $5.91B in Q1 2025
- Bitcoin holdings grew 22% YTD to 818,334 BTC as of May 3, 2026
- Raised $7.37B in Q1 2026 via ATM offerings ($5.30B MSTR, $2.07B STRC)
- BTC Yield of 9.4% achieved YTD 2026
- Cash and cash equivalents $2.21B as of March 31, 2026, down from $2.30B at Dec 31, 2025
- Subscription services revenue $58.9M, +58.7% YoY
- Gross margin 67.1% vs 69.4% in Q1 2025
- Preferred stock dividends $229.5M in Q1 2026 vs $10.6M in Q1 2025
Financial Impact
Net loss of $12.54B driven by $14.46B unrealized loss on bitcoin; revenue grew $13.2M YoY to $124.3M
Risk Factors
- Further bitcoin price decline would amplify unrealized losses and potentially trigger margin calls on debt covenants
- Massive ongoing dilution from ATM programs (333.9M diluted shares, +30% YoY)
- Preferred dividend obligations growing rapidly ($229.5M in Q1 2026, up from $10.6M YoY)
- Software business remains small relative to bitcoin exposure ($124.3M quarterly revenue vs $51.6B digital assets)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001050446-26-000024 |
| Document: mstr-20260505.htm | 0001050446-26-000024 |
| Document: 0001050446-26-000024-index-headers.html | 0001050446-26-000024 |
| Document: 0001050446-26-000024-index.html | 0001050446-26-000024 |
| Document: 0001050446-26-000024.txt | 0001050446-26-000024 |
| 8-K Data (Synthetic) | 0001050446-26-000024 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 8, 2026 16w ago | 8-K | $68.65 $72.85 | ▲ +6.12% | ▲ +3.07% | $73.29 (+6.76%) |
Jun 8, 2026 16w ago | 8-K / DEFA14A | $68.65 $72.85 | ▲ +6.12% | ▲ +3.07% | $73.29 (+6.76%) |
Jun 3, 2026 17w ago | DEFA14A | $70.00 $72.05 | ▲ +2.93% | ▲ +1.05% | $73.29 (+4.70%) |
Jun 2, 2026 17w ago | DEFA14A | $69.19 $73.84 | ▲ +6.72% | ▲ +4.22% | $73.29 (+5.93%) |
Jun 1, 2026 17w ago | DEFA14A | $69.94 $73.03 | ▲ +4.43% | ▲ +3.31% | $73.29 (+4.80%) |
Jun 1, 2026 17w ago | 8-K | $70.87 $73.22 | ▲ +3.32% | ▲ +2.08% | $73.29 (+3.41%) |
May 29, 2026 17w ago | DEFA14A | $70.87 $73.22 | ▲ +3.32% | ▲ +2.08% | $73.29 (+3.41%) |
May 28, 2026 18w ago | DEFA14A | $70.11 $72.69 | ▲ +3.68% | ▲ +2.50% | $73.29 (+4.54%) |
May 27, 2026 18w ago | DEFA14A | $72.60 $72.50 | ▼ −0.14% | ▼ −1.87% | $73.29 (+0.95%) |
May 26, 2026 18w ago | DEFA14A | $73.52 $70.80 | ▼ −3.70% | ▼ −5.58% | $73.29 (−0.31%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access