Strategy Posts $12.5 Billion Q1 Loss as STRC Gains Momentum

Strategy reported a net loss of $12.54 billion in the first quarter, primarily driven by a $14.46 billion unrealized markdown on its Bitcoin holdings. The decline reflects a period when Bitcoin fell more than 25%, dropping from around $90,000 to nearly $65,000 during the quarter.

STRC Preferred Shares Drive Bitcoin Acquisition Strategy

Despite the loss, the company pointed to strong demand for its STRC preferred shares as a key highlight. The instrument has raised $5.58 billion so far this year out of a total $11.68 billion and currently offers an annual yield of about 11.5%. Strategy has used these funds to support ongoing Bitcoin purchases.

The firm has paid more than $692 million in cumulative dividends across its preferred stock offerings, signaling continued investor interest in yield-focused products.

Bitcoin Holdings and Market Recovery

Strategy now holds 818,334 BTC valued at approximately $66.82 billion, with an average purchase price of $75,537. With Bitcoin rebounding to near $82,000, the company has returned to an unrealized gain of around $5 billion.

While some analysts view STRC as an effective financing tool, others question its long-term sustainability, pointing to reliance on continuous capital inflows to maintain growth.