Strategy NASDAQ: MSTR executives emphasized an expanded set of capital markets “levers” and a continued focus on growing Bitcoin per share during the company’s first quarter 2026 earnings webinar, while noting that reported results were dominated by quarter-end Bitcoin price moves.
Quarter results driven by Bitcoin fair value decline
Chief Financial Officer Andrew Kang said Strategy reported an operating loss of $14.5 billion and a net loss of $12.8 billion for Q1, “primarily driven by the decline in Bitcoin’s fair value during the quarter.” Kang characterized the impact as “largely non-cash market driven,” and said the company’s underlying approach remains to “raise capital responsibly, buy and hold Bitcoin over the long term, and grow Bitcoin per share.”
Kang said the company held 818,334 Bitcoin, representing “about 3.9% of all Bitcoin that will ever exist,” which he said keeps Strategy as “the largest corporate Bitcoin holder in the world.” As of May 4, he said the company’s Bitcoin had a total value of approximately $64 billion with a total acquisition cost of about $62 billion, for an average purchase price of about $76,000 per Bitcoin.
On the balance sheet, Kang said digital assets ended the quarter at $51.6 billion, down from $58.9 billion at year-end, reflecting a lower quarter-end Bitcoin price after the company acquired 89,599 Bitcoin in Q1 for about $7.3 billion at an average price of about $80,900. Cash and cash equivalents were $2.2 billion. Long-term debt was unchanged at $8.2 billion, while preferred equity increased to $9 billion, which Kang attributed to issuance of the company’s “Stretch” product.
Kang also detailed a tax-related balance sheet shift tied to quarter-end Bitcoin marks. He said an unrealized gain at year-end moved to an unrealized loss at the end of Q1, shifting a $1.9 billion deferred tax liability to a deferred tax asset, with a “full valuation allowance” bringing net tax positions to zero and producing a “non-cash tax benefit” that partially offset pre-tax loss.
Bitcoin-per-share metrics and acquisition pace
Kang highlighted growth in the company’s “Bitcoin per share” metric, stating it increased from 181,030 sats per share in May 2025 to 213,371 sats per share in May 2026, about an 18% year-over-year increase. He said year-to-date 2026 “BTC yield” was 9.4% versus 22.8% for all of 2025, and that the company generated 63,410 BTC gain so far in 2026 compared with 101,873 for all of 2025.
In addition, Kang said Strategy had already purchased 56,235 Bitcoin quarter-to-date in Q2 (through May 1) for about $4.1 billion at an average price of roughly $73,400. He cited an unrealized fair value gain of about $8.3 billion in Q2 so far as of May 1, and said the company’s Bitcoin market value was about $64 billion based on a Bitcoin price of $78,350.
Capital raising shifts toward “digital credit” and Stretch
President and CEO Phong Le said Strategy had raised $11.7 billion year-to-date in 2026, “about half” from common equity and “half from issuances of our preferred, primarily Stretch.” Le added, “No longer are we issuing convertible debt to raise capital.”
Le also described a shift in issuance mix over the first four months of 2026, saying the company had “largely flipped” from using mostly common equity in January to primarily digital credit by April, which he said is “less dilutive to our overall shareholders.”
Le repeatedly pointed to Stretch’s growth and trading metrics. He said Stretch had grown to $8.5 billion outstanding, with an 11.5% dividend yield, and was trading about $375 million a day. He also said Stretch’s price had traded within a $99-$101 target range for “100% of the time” over the last three months (March, April and May).
Kang told investors Strategy is asking shareholders to approve an amendment to move Stretch dividends from monthly to semi-monthly payments on the 15th and the last day of each month while keeping the “economics unchanged.” If approved, he said the first record date would be June 30 and the first payment date would be July 15.
Executives outline broader “optionality,” including potential Bitcoin sales
Le said the company is evaluating a wider set of potential balance sheet actions than in prior years, including using proceeds from different instruments to buy Bitcoin, build U.S. dollar reserves, or reduce obligations. He said Strategy’s primary objective remains “to increase Bitcoin per share,” while also managing credit risk and balance sheet metrics.
Le also said Strategy “will sell Bitcoin when it’s advantageous to the company,” adding, “We’re not gonna sit back and just say, you know, ‘We’ll never sell the Bitcoin.’” He described scenarios in which selling high-cost-basis Bitcoin could capture tax benefits, noting what he described as about $2.2 billion of estimated tax benefits reflected on the balance sheet.
During Q&A, Citi analyst Pete Christiansen asked whether investors should view the presentation as a signal Strategy would be more tactical, including potentially selling Bitcoin. Executive Chairman Michael Saylor replied, “Yeah, you should,” and said the company may sell Bitcoin to fund dividends “just to inoculate the market.” He added, “We got $65 billion. We have a, you know, a $2.2 billion tax credit that’s lying on the floor. We ought to go find a way to pick up the $2.2 billion.”
Saylor emphasizes regulatory sentiment, credit framework, and long-term structure
Saylor argued that U.S. political and regulatory leadership has grown more supportive of digital assets and Bitcoin, calling it “a priority in the House and the Senate” with “bipartisan support.” He also pointed to bank announcements around integrating Bitcoin into operations, saying that once Bitcoin is integrated into the banking system, “it’s digital capital here to stay.”
On the company’s credit framework, Saylor described Strategy as focused on making Stretch “the deepest, most liquid, most stable, least volatile, highest Sharpe ratio credit instrument in the world.” He discussed the company’s modeling of credit risk and cost of capital, and said some investors mistakenly view Stretch as the company “borrowing money at 11.5%,” adding, “That’s not correct… When we sell $1 billion of Stretch, we’re never paying it back.” He described Stretch as a “perpetual swap” with a variable credit spread and said the company views its cost of capital as stochastic.
Saylor also addressed questions about regulation, saying Strategy’s products operate within existing securities law “safe harbor” and that the company does not need new rules to grow. However, he said recognition of Bitcoin as legitimate collateral under Basel-related frameworks would be positive for broader adoption by banks and insurers.
Asked by Cantor Fitzgerald’s Ramsey El-Assal for an update on the “BTC Security Initiative,” Le said Strategy is forming a Bitcoin Security Program or Council aimed at bringing together custodians, exchanges, and large Bitcoin treasury companies to align on quantum risk time horizons and ecosystem preparedness. Le said the company expects to share participants and viewpoints “in the next month or so.”
In response to a question from James Lavish about an optimal future balance sheet structure, Saylor said Strategy wants to be “debt-free completely” and that it may eliminate its convertible debt by swapping into Stretch, swapping for equity, or paying down with cash. He added that if he were designing a Bitcoin treasury company from scratch, it would include “one common equity, one monthly or… semi-monthly variable preferred equity, and a big stack of Bitcoin and nothing else.”
Closing the call, Le urged shareholders to vote ahead of the early-June deadline on the proposed Stretch dividend frequency change, calling it part of the company’s principle to “make Stretch better and more attractive.”
About Strategy NASDAQ: MSTR
Strategy, formerly known as MicroStrategy, Incorporated NASDAQ: MSTR is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.
Founded in 1989 by Michael J.
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