Strategy Inc. Reports Record-Breaking Net Loss, Saylor Considers Bitcoin Sales

Strategy Inc., a leading digital asset investor, has reported a staggering net loss of $12.54 billion in Q1 2026, surpassing its previous record. The substantial loss was primarily caused by an enormous unrealized markdown on its bitcoin holdings, which declined from approximately $87,000 to around $68,000 between January and March.

The company's significant exposure to the volatile cryptocurrency market led to a sharp increase in operating losses, reaching $14.47 billion during the quarter. In contrast, revenue rose by 11.9% year-over-year to $124.3 million, albeit not enough to offset the substantial loss.

In a notable development, Executive Chairman Michael Saylor subtly hinted at selling some of the company's bitcoin holdings to cover its annual dividend obligations, which now total around $1.5 billion across various preferred stock classes. This statement marks a departure from Saylor's long-standing stance of never selling bitcoin, sparking market reactions and speculation.

The company has approximately 18 months of coverage before it needs to liquidate its bitcoin holdings or seek additional capital. STRC, Strategy's variable-rate perpetual preferred stock, continues to attract investors, with a $8.54 billion market capitalization and daily trading volume exceeding $375 million. The instrument has raised $5.58 billion year-to-date, marking a 189% increase.