MicroStrategy posts $12.5B Q1 loss on Bitcoin markdown

MicroStrategy posted a $12.54 billion net loss for the first quarter of 2026 after recording a $14.46 billion unrealized markdown on its Bitcoin holdings. The company raised $11.68 billion year-to-date and held 818,334 BTC as of its report, up 22% since January.

The firm’s digital assets had a market value of $64.14 billion as of May 3. The average cost basis for MicroStrategy’s Bitcoin was $75,537 per coin, compared with a market price near $78,374 on May 1. The accounting markdown produced the headline loss despite the company’s fundraising and asset additions.

MicroStrategy reported a 9.4% Bitcoin yield year-to-date under its internal metric, which it presented as about 63,410 BTC added and roughly $4.97 billion in illustrative gains for shareholders.

The company raised $11.68 billion in equity through May, the largest U.S. equity issuance so far in 2026. A key financing vehicle was STRC, the Variable Rate Series A Perpetual Stretch Preferred Stock, which reached an $8.5 billion market capitalization nine months after its introduction. STRC raised $5.58 billion year-to-date, with daily trading volume near $375 million and realized volatility around 3%.

Cumulative dividends across all preferred series totaled $692.5 million, paid over 23 consecutive distributions. Shareholders are voting on a proposal to change STRC dividend payments to a semi-monthly schedule; company management has said the change would support liquidity and price stability for the preferred shares.

MicroStrategy’s analytics business recorded revenue of $124.3 million for the quarter, an increase of 11.9% year-over-year, with a gross margin of 67.1%. Cash and cash equivalents were $2.21 billion at the end of the quarter.

Executive chair Michael Saylor posted the key results on social media, writing: “818,334 $BTC held– 9.4% BTC Yield achieved YTD 2026– $STRC scaled to $8.5 billion in 9 months– Largest US equity issuer, raised $11.6 billion YTD 2026.”

The company’s filings note that future reported earnings will reflect changes in Bitcoin’s market price and ongoing capital markets activity.