Investing.com - Strategy Inc (NASDAQ: MSTR) reported a first-quarter loss of -$38.25 per share, significantly worse than the analyst estimate of -$18.98, as unrealized losses on its bitcoin holdings weighed on results. Revenue came in at $124.3 million, slightly below the consensus estimate of $125.07 million, though up 11.9% from $111.1 million in the same quarter last year.

The company’s operating loss widened to $14.47 billion from $5.92 billion in the first quarter of 2025, driven primarily by a $14.46 billion unrealized loss on its digital assets. Despite the accounting losses, Strategy increased its bitcoin holdings to 818,334 bitcoins as of May 3, representing 22% growth year to date, and achieved a 9.4% BTC Yield for the period.

Shares fell 1% following the results, reflecting investor concern over the deeper-than-expected loss.

"Adoption of Bitcoin continues to grow in 2026. Digital Credit, highlighted by STRC, has been a big success," said Phong Le, President and Chief Executive Officer.

The company’s STRC preferred stock raised $5.58 billion year to date, representing 189% growth. Strategy has now paid $692.5 million in cumulative dividends across 23 consecutive distributions on its preferred equity products. The company raised $11.68 billion in total capital year to date through various securities offerings.

Revenue for the quarter generated a gross profit of $83.4 million with a 67.1% gross margin, compared to $77.1 million and a 69.4% margin in the prior-year period. As of March 31, Strategy held $2.21 billion in cash and cash equivalents, down from $2.30 billion at year-end 2025.

The company’s bitcoin holdings had a market value of $64.14 billion as of May 3, with an average cost per bitcoin of approximately $75,537.