Strategy Reports $14.5 Billion Loss in Q1 as Saylor Continues to Accumulate Bitcoin

Strategy reported a $14.5 billion unrealized loss in the first quarter as Bitcoin declined, yet the company continued accumulating the asset. The loss followed a 23% drop in Bitcoin’s price during the quarter, marking its weakest start since 2018. At the same time, Strategy recorded a pending income tax benefit of about $2.4 billion.

Strategy Expands Bitcoin Holdings as Market Volatility Leads to Losses

The company’s accounting structure rules out marking Bitcoin holdings to market value each quarter. Therefore, falling prices resulted in large unrealized losses. Strategy also reported a $2.42 billion deferred tax income during the same period, partially offsetting the reported loss.

From April 1 to April 5, Strategy purchased 4,871 Bitcoin for about $330 million. The average acquisition price stood near $67,700 per coin. According to a WSJ report, the funding came through sales of Class A common stock and at-the-market offerings of Stretch preferred shares. The company now holds 766,970 Bitcoin acquired at a total cost of $58.02 billion, with an average price of $75,644.

At the same time, Bitcoin price traded at $68,618, reflecting a decline of 0.68% at the time of writing. However, the trading volume increased by over 18%, showing heightened activity during the decline.

The issuance of equity at a premium was the Strategy model upon which the purchase of Bitcoins was to be financed. However, that premium has narrowed, making the approach harder to sustain. As a result, the company has increased reliance on preferred shares. This follows a previous report in which Strategy added 4,871 BTC.

Stretch preferred shares, introduced in 2025, carry an 11.5% annual yield that resets monthly. These assets avert dilution of common shareholders’ interests but create fixed financial obligations. Strategy also announced plans to sell $21 billion in Class A stock and $21 billion in perpetual preferred shares through open-market offerings.

Crypto Market Declines in Q1 2026 as Stablecoins and RWAs Expand

According to the detailed crypto market Q1 report, the broader crypto market declined in Q1 2026. Total market capitalization fell to around 20%, dropping below $2.5 trillion. This decline occurred while traditional markets remained stable and commodities surged.

Bitcoin dropped 22.6% during the quarter, falling below $64,000 in early February. Ethereum declined 35%, reaching $1,820 during the same period. Additionally, over $15.7 billion in leveraged positions were liquidated, while DeFi total value locked fell by 16%.

However, activity in other areas increased. Stablecoins exceeded $10 trillion in monthly transaction volume. Real-world asset tokenization expanded by 38%, while AI-driven transactions reached 120M. Despite declining prices, public companies added over $3.7 billion in crypto assets, including Strategy.