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▲ Bitcoin (BTC), Strategy (MSTR)/ChatGPT generated image ©
Strategy (MSTR) revealed a shocking first-quarter performance, falling significantly short of market expectations due to the sharp decline 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 Bitcoin (BTC) holdings alone incurring an impairment loss of $14.46 billion.
This expanded the company's total net loss to $12.54 billion, a substantial increase from 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 a major factor impacting the market.
However, Bitcoin has since rebounded above $81,000, partially improving the situation. As of year-to-date, Strategy's unrealized gains from Bitcoin holdings are 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, an increase of 22% year-over-year. The Bitcoin return rate was 9.4%, and the net increase in holdings year-to-date was 63,410 BTC.
Management positively evaluated the expansion of its digital credit business. CEO Poong Lee emphasized the increasing 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 the 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.*
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