The world’s largest Bitcoin holding company, Strategy, has posted a massive loss of $12.54 billion for the first quarter of 2026 after the value of its Bitcoin holdings plummeted.
The loss was due to $14.46 billion in unrealized depreciation following the collapse in Bitcoin prices from January to March.
During that period, the price of Bitcoin fell by more than 25% from around $87,000 to nearly $68,000 at the end of the first quarter.
While the loss is significant on paper, it does not involve actual cash flow as the company’s Bitcoin holdings were not sold.
Under the leadership of Executive Chairman Michael Saylor, Strategy now owns 818,334 BTC with an average purchase price of around $75,537 per unit.
With Bitcoin currently trading back near $81,000, the company’s total holdings are estimated to be worth $66.82 billion, giving it an unrealized gain of nearly $5 billion.
Despite posting a big loss in Q1, MSTR shares managed to surge to $190 in trading on Tuesday, their highest since November last year, before falling slightly in after-market trading.
The stock is still up nearly 20% year-to-date, although its value remains more than 50% lower than a year ago.
Strategy also highlighted the success of its preferred stock product known as STRC.
The instrument offers an annual dividend yield of around 11.5% and is designed to maintain a price of close to $100 per share.
The funds raised through the STRC sale were used to buy more Bitcoin.
Since January 2026, STRC alone has contributed $5.58 billion of the company’s total capital raised of $11.68 billion.
The company's management now sees STRC as the main engine to continue its aggressive Bitcoin accumulation strategy.
The company's financial strategy has been criticized for being unsustainable, with some calling it circular or resembling a Ponzi scheme because it relies on new capital to buy more Bitcoin.
However, supporters see it as an innovation that provides access to Bitcoin investments through a fixed-income instrument.
At the same time, analysts believe that the Bitcoin spot ETF is simpler and more transparent than the complex structure of preferred shares such as STRC, STRK, STRF and STRD.
For the second quarter of 2026, the company's outlook is seen as more positive if the price of Bitcoin remains above $80,000, which could potentially lead to large profits and restore market confidence.
