Microstrategy Posts $12.5 Billion Q1 2026 Loss On Bitcoin Slide

What Happened

MicroStrategy Inc posted a $12.54 billion net loss for the first quarter of 2026, the largest in the firm’s history. The deficit reflects a $14.46 billion unrealized markdown on its Bitcoin (BTC) holdings.

Despite the headline loss, the company raised $11.68 billion year-to-date, the biggest US equity issuance of 2026. Bitcoin holdings now total 818,334 BTC, up 22% since January.

The firm reported a 9.4% BTC Yield year-to-date under its proprietary key performance metrics. That translates to 63,410 added bitcoin and roughly $4.97 billion in illustrative gains for shareholders.

Market Context

Bitcoin Position Expands During Bear Market

MicroStrategy’s digital assets reached a market value of $64.14 billion as of May 3. The average cost basis sits at $75,537 per coin against a May 1 market price near $78,374.

STRC, the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, now carries an $8.5 billion market capitalization. Daily trading volume sits near $375 million with realized volatility at 3%.

Shareholders are voting on a proposal to shift STRC payments to a semi-monthly schedule, which management argues will improve liquidity and price stability.

Strategy’s next quarterly print will hinge on bitcoin’s price trajectory and continued demand for its preferred stock issuance.

Why It Matters

STRC Scales Past $8.5 Billion in Nine Months

The instrument raised $5.58 billion year-to-date, a 189% jump. Cumulative dividends across all preferred series total $692.5 million, paid over 23 consecutive distributions without interruption.

Details

Software Business Steady

Analytics revenue rose 11.9% to $124.3 million in the quarter. Gross margin held at 67.1%, while cash reserves closed Q1 at $2.21 billion.

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