Strategy Posts $12.5 B Q1 Loss on $14.46 B Bitcoin Write-Down
STRC•Strategy Inc posted a $12.54 billion net loss in Q1, driven by a $14.46 billion unrealized write-down on its 818,334 bitcoin holdings valued at $64.14 billion. The company generated $124.3 million in revenue with $83.4 million gross profit and raised $11.68 billion year-to-date.
1. Q1 Financial Results
Strategy Inc reported a net loss of $12.54 billion, or $38.25 per share, for the quarter ended March 31, compared to a $4.22 billion loss, or $16.49 per share, a year earlier. The operating loss widened to $14.47 billion, driven by a $14.46 billion unrealized impairment on its bitcoin portfolio.
2. Bitcoin Portfolio Performance
As of May 3, the company held 818,334 bitcoins valued at $64.14 billion, reflecting a 22% increase in holdings year-to-date. Despite a 7% decline in bitcoin’s price this year, Strategy continues to accumulate digital assets to position for future appreciation.
3. Revenue and Margins
Revenue for Q1 reached $124.3 million, up 11.9% from $111.1 million a year earlier but narrowly below the $125.07 million consensus. Gross profit totaled $83.4 million, yielding a 67.1% margin versus 69.4% in the prior-year period.
4. Capital Raising and Liquidity
Strategy raised $11.68 billion in total capital year-to-date, including $5.58 billion through its STRC preferred stock, and paid $692.5 million in dividends across 23 distributions. Cash and cash equivalents stood at $2.21 billion as of March 31.
