Strategy has reported a US$12.54 billion net loss for the first quarter of 2026, driven by a sharp decline in Bitcoin prices over the period.

The company said Bitcoin fell from about US$87,000 at the start of January to around US$68,000 by the end of March, weighing heavily on its balance sheet under accounting rules that track asset value fluctuations.

Strategy disclosed it held 818,334 Bitcoin at an average purchase price of US$75,537, alongside US$2.25 billion in cash at the end of the quarter. Despite the headline loss, Bitcoin has since recovered, trading back above US$80,000.

Shares in the company were up nearly 20 per cent year-to-date, although still more than 50 per cent lower compared to a year earlier, reflecting continued volatility tied to its Bitcoin-heavy strategy.

Strategy executive chairman Michael Saylor says the company may sell part of its Bitcoin holdings to fund dividend payments. 

“We’ll probably sell some Bitcoin to fund a dividend, just to inoculate the market,” Saylor said during Strategy’s first-quarter earnings call.

He says the move would show that the company’s fine, the Bitcoin’s fine, the industry’s fine, the world didn’t come to an end.

The company’s results underscore its broader approach, which prioritises Bitcoin accumulation over conventional earnings performance.

Strategy tracks success through Bitcoin per share metrics rather than standard profit figures, a model that continues to attract scrutiny during periods of price swings.

The loss also comes against a backdrop of aggressive capital raising. Strategy has raised more than US$25 billion through equity and debt markets in 2025, helping fund its Bitcoin purchases and strengthen liquidity.

At the end of the quarter, it also held a significant cash buffer, which the company has indicated is intended to support dividend payments and manage short-term financial pressure.

Strategy’s financing structure has increasingly shifted toward perpetual preferred equity instruments, which it describes as “digital credit”, alongside existing convertible debt obligations.

The approach reduces near-term refinancing pressure but introduces ongoing dividend commitments, which have reached hundreds of millions of dollars annually.

The results highlight the continued tension between Bitcoin-linked volatility and Strategy’s long-term treasury strategy, which remains heavily exposed to movements in the cryptocurrency market

The firm held 818,334 BTC as of May 3, 2026, marking a 22% increase since the start of the year. It also reported a 9.4% BTC yield and $11.68 billion raised year to date.