- Bitcoin Holdings: Strategy Inc holds 818,334 Bitcoin (~3.9% of total supply) valued at $51.6 billion.
- Capital Raised: $11.7 billion raised in 2026, funding Bitcoin accumulation and STRC issuance.
- STRC Performance: STRC trades near par with 11.5% yield, $375M daily volume, and $8.5B notional value.
- Bitcoin Per Share Growth: 18% YoY increase to 213,371 sats/share, with $9B equity driven by STRC issuance.
- Financials & Liquidity: $62B market cap, $8.2B long-term debt, and $2.2B cash/cash equivalents for operational flexibility.
Q1 Financial Highlights
Revenue rose modestly, reflecting continued demand for the firm’s Bitcoin‑backed offerings. Despite the surge in Bitcoin holdings, the company’s operating margin turned negative, driven by a 37% fall in Bitcoin’s fair value. The net loss widened to $12.8 billion, with a sharp drop in profitability reflected in the earnings per share.
Bitcoin Position and Yield
MicroStrategy holds 818,334 BTC—about 3.9% of the total supply—boosting Bitcoin per share to 213,371 sats. Year‑to‑date BTC yield stands at 9.4%, a decline from 22.8% in 2025, while BTC gains lag at 63,110 BTC versus 101,873 BTC last year.
STRC Performance
STRC continues to outperform expectations, delivering an 11.5% dividend yield on an $8.5 billion notional value and $375 million daily volume. Despite a 37% Bitcoin devaluation, STRC trades near par, paying consistent monthly dividends and achieving accelerated ATM velocity.
Balance Sheet Liquidity
The balance sheet remains highly liquid: digital assets $51.6 billion, cash $2.2 billion, long‑term debt $8.2 billion, and equity $9 billion. Liquidity surged from $54 million to $300 million in April, reflecting robust cash flow and asset diversification.
Capital Structure and Debt Management
Capital flexibility is evident with $11.7 billion raised via STRC, split evenly between common and preferred equity. The firm can use proceeds to buy Bitcoin, pay dividends, retire debt, or build a USD reserve, thereby optimizing its capital stack.
Digital Credit Strategy
MicroStrategy targets doubling Bitcoin per share in seven years by leveraging digital credit. The firm aims to allocate 10–20% of Bitcoin reserves annually to STRC, generating amplification to common stock while maintaining a high Sharpe ratio against traditional bonds.
Market Outlook and Valuation
STRC trades within a tight $99–$101 range, with daily liquidity expanding to $300 million. The instrument outperforms junk bonds, investment‑grade bonds, and the S&P 500, supported by a high Sharpe ratio and a valuation at P/E –4.96, P/B 1.7, and EV/EBITDA –3.56.
Investor Sentiment and Guidance
Investor Q&A highlighted optimism around digital credit and Bitcoin’s long‑term growth. Management emphasized proactive capital stack management, potential tax‑credit utilization, and the benefit of a risk‑on environment for Bitcoin and STRC, reinforcing confidence in future value creation.