Strategy (MSTR) Q1 2026 earnings summary

Executive summary

• Ended Q1 2026 with 818,334 bitcoins, a 22% increase year to date, representing 3.9% of all Bitcoin that will ever exist and maintaining the largest corporate Bitcoin position globally.

• Raised $11.7 billion in capital year-to-date, split between common equity and preferred (mainly STRC), with STRC scaling to $8.5 billion and becoming the largest preferred stock by market cap globally.

• Operating loss of $14.5 billion and net loss of $12.8 billion in Q1 2026, primarily due to non-cash fair value declines in Bitcoin holdings.

• Bitcoin per share increased 18% year-over-year to 213,371 sats per share, with a 9.4% BTC yield delivered year-to-date.

• Proposed to double STRC dividend payment frequency to semi-monthly to enhance liquidity and price stability.

Financial highlights

• Acquired 89,599 Bitcoin in Q1 for $7.3 billion at an average price of $80,900.

• Digital assets ended Q1 at $51.6 billion, down from $58.9 billion at year-end, reflecting a 23% BTC price drop.

• Cash and cash equivalents at $2.2 billion; long-term debt stable at $8.2 billion; preferred equity increased to $9 billion.

• Revenues rose 11.9% year-over-year to $124.3 million, with gross profit of $83.4 million and a 67.1% margin.

• STRC notional value outstanding reached $8.5 billion, with $5.6 billion issued YTD 2026.

Outlook and guidance

• Targeting to double Bitcoin per share in seven years, implying a 10% annualized BTC yield and 10–20% annual digital credit sales.

• Confident in funding dividends for 43 years at current reserve size if Bitcoin appreciates 0% annually; breakeven ARR for perpetual funding is 2.3%.

• Expects distributions on preferred equity to be treated as non-taxable return of capital for at least ten years.

• Plans to retire all convertible debt and focus on Stretch as the primary credit instrument.

• Will proactively manage capital stack, including potential tactical Bitcoin sales for optimization and tax benefits.