Strategy Incorporated (NASDAQ:MSTR) shares fell roughly 2% in Wednesday morning trading after the Bitcoin treasury company reported a first-quarter net loss that came in well below analyst expectations, driven by a sharp decline in the value of its digital asset holdings.
The company posted a net loss of $12.54 billion, or $38.25 per diluted share, for the three months ended March 31, 2026, compared to a loss of $4.22 billion, or $16.49 per share, in the same period a year earlier. Analysts had estimated a loss of approximately $18 per share.
Total revenues rose 11.9% year-over-year to $124.3 million, narrowly missing the consensus estimate of $125 million. Gross margin slipped to 67.1% from 69.4% a year ago.
The company's operating loss widened to $14.47 billion from $5.92 billion in Q1 2025, with the quarter's results including an unrealized loss of $14.46 billion on its digital asset holdings.
CFO Andrew Kang said the results were "primarily driven by the decline in Bitcoin's fair value during the quarter," characterizing the impact as "largely non-cash market driven." Kang said the company's approach remains to "raise capital responsibly, buy and hold Bitcoin over the long term, and grow Bitcoin per share."
As of May 3, Strategy held just over 818,000 Bitcoins at a market value of roughly $64.14 billion. The company reported a year-to-date BTC Yield of 9.4% and a BTC dollar gain of $4.97 billion.
Executives also signaled a willingness to sell Bitcoin tactically to fund dividends, build dollar reserves or capture tax benefits, while maintaining its primary objective of increasing Bitcoin per share.