to leave a comment.
▲ Bitcoin (BTC), Strategy (MSTR)/ChatGPT generated image ©
Strategy revealed a Q1 shock, posting earnings significantly below market expectations due to the sharp drop in Bitcoin prices.
According to crypto media outlet Coingape on May 5 (local time), Strategy recorded a net loss per share (EPS) of $38.25 in Q1 2026, significantly missing Wall Street's estimated loss of $3.41. The primary reason for the poor performance was digital asset impairment losses, with a valuation loss of $14.46 billion occurring solely from its Bitcoin (BTC) holdings.
This expanded the company's total net loss to $12.54 billion, a significant increase compared to the $4.22 billion loss in the same period last year. The sharp 30% drop in Bitcoin prices during Q1, coupled with macro risks such as the US-Iran conflict, was cited as the main reason for the market shock.
However, Bitcoin later rebounded above $81,000, partially improving the situation. As of year-to-date, Strategy's unrealized gains from Bitcoin holdings were estimated at approximately $5.1 billion. Quarterly revenue was $124.3 million, slightly below the estimated $124.6 million, but an increase from $111.1 million in the same period last year, indicating sustained growth in its core business.
Despite the deteriorating performance, Strategy continued its Bitcoin accumulation strategy. As of May 2026, the company holds a total of 818,334 BTC, a 22% increase year-over-year. Bitcoin's return rate was 9.4%, and net new holdings since the beginning of the year amounted to 63,410 BTC.
Management positively evaluated the expansion of its digital credit business. CEO Feng Li emphasized the growing adoption of Bitcoin and the performance of the STRC-centric digital credit program, while CFO Andrew Kang stated that dividend payments have been maintained for 23 consecutive quarters. Chairman Michael Saylor explained that this business has grown to $8.5 billion in just nine months.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.