Strategy Inc reported Q1 revenue of $124.3 million, up 11.9% year-over-year but below the $125.07 million consensus. Net loss widened to $38.25 per share and operating loss surged to $14.47 billion, driven by a steep unrealized writedown on its crypto holdings.

As of May 3, the firm held 818,334 Bitcoins, 22% growth year-to-date at an average cost of $75,537 per BTC. A $14.46 billion unrealized loss on these digital assets accounted for the bulk of the quarterly deficit.

Chairman Michael Saylor signaled plans to sell Bitcoin to fund preferred-stock dividend obligations, marking a departure from the prior no-sell policy. CEO Phong Le noted potential tax benefits on any sales, suggesting a tactical approach tied to market conditions.

Shares fell 3.1% in after-hours trading on investor concern over the deep losses. With $2.21 billion in cash and ongoing preferred share issuances, the company will gauge Bitcoin price levels and equity market appetite before executing any sales.