May 5 - Michael Saylor's Strategy said it posted a substantially larger loss in the first quarter on Tuesday, the result of a steep decline in bitcoin values that undermined the market worth of its substantial cryptocurrency holdings amid heightened market volatility.
Company results for the three months ended March 31 showed a net loss of $12.54 billion, or $38.25 per share, compared with a net loss of $4.22 billion, or $16.49 per share, in the same period a year earlier. The company holds a significant bitcoin stake - 818,334 bitcoins as of May 3 - and reported a market capitalization of $64.14 billion.
Bitcoin has experienced a marked downturn since October, a slide that was later intensified by rising tensions in the Middle East, the company said. That combination highlighted the susceptibility of digital assets to shifts in investor risk appetite, with market participants moving toward perceived safe havens in light of worries over lofty valuations in the artificial intelligence sector and continued uncertainty about U.S. Federal Reserve policy.
Although bitcoin has recovered some ground, the cryptocurrency has still declined by 7% in 2026. The share price of Strategy, identified as the largest corporate holder of bitcoin, fell roughly 1.4% in extended trading following the earnings report. Despite the quarterly loss and the extended-session drop, Strategy shares remained about 23% higher as of Tuesday's regular session close for the year to date.
Executives pointed to an evolving regulatory backdrop for digital assets in the U.S. and other major markets as a countervailing force. Banks and institutional asset managers are increasingly introducing crypto-related products and services under clearer rules, with more defined custody and licensing expectations for intermediaries.
"Adoption of bitcoin continues to grow in 2026. We also continue to see traditional finance and major banks including Morgan Stanley, Goldman Sachs and Citi announcing bitcoin ETFs, trading, custody and lending services," said CEO Phong Le.
Investment tools and advisory services have also promoted automated evaluations of Strategy as an equity. One such service posed the question of investing $2,000 in MSTR and described its methodology as assessing thousands of companies monthly using more than 100 financial metrics. The service cited past winners it has highlighted, including Super Micro Computer (+185%) and AppLovin (+157%), and invited investors to review whether Strategy is featured in its strategies.