Strategy Inc (NASDAQ:MSTR) said it lost -$38.25 per share in the first quarter, a result that missed the analyst consensus of -$18.98 per share. The deficit was driven primarily by unrealized losses tied to the company's bitcoin holdings.
Revenue for the quarter totaled $124.3 million, up from $111.1 million in the same quarter a year earlier, representing an 11.9% increase. That top-line figure, however, came in just below the consensus estimate of $125.07 million.
Operating performance and digital-asset write-downs
The company's operating loss for the quarter widened to $14.47 billion, compared with an operating loss of $5.92 billion in the first quarter of 2025. Strategy attributed the bulk of that change to a $14.46 billion unrealized loss on its digital assets, a non-cash item that sharply expanded the reported operating deficit.
Despite the accounting losses, Strategy said it has continued to accumulate bitcoin. As of May 3, the company held 818,334 bitcoins, an amount the company reported represents 22% growth year to date. Strategy also reported achieving a 9.4% BTC Yield for the period.
The market value of the bitcoin holdings was $64.14 billion as of May 3, with an average cost per bitcoin of approximately $75,537, according to the figures provided.
Capital-raising, preferred equity and dividends
Strategy has been active in raising capital across multiple securities. The company reported total capital raised of $11.68 billion year to date through various offerings. Its STRC preferred stock raised $5.58 billion year to date, which the company characterized as 189% growth. Strategy also said it has paid $692.5 million in cumulative dividends across 23 consecutive distributions on its preferred equity products.
Profitability margins and liquidity position
On a gross-profit basis, the quarter produced $83.4 million and a 67.1% gross margin, compared with $77.1 million and a 69.4% gross margin in the year-earlier quarter. The company reported $2.21 billion in cash and cash equivalents as of March 31, down from $2.30 billion at year-end 2025.
Market reaction and executive comment
Shares fell roughly 1% after the results were released, reflecting investor concern over the larger-than-expected loss. Commenting on adoption trends, Phong Le, President and Chief Executive Officer, said, "Adoption of Bitcoin continues to grow in 2026. Digital Credit, highlighted by STRC, has been a big success."
What the results show
Strategy's first-quarter results illustrate a contrast between operational revenue growth and valuation-driven accounting swings tied to its bitcoin holdings. The company expanded its bitcoin position and continued to access capital markets through preferred-equity and other securities offerings, even as non-cash markdowns produced a substantially larger reported operating loss for the quarter.