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MicroStrategy just posted a $12.54 billion loss. That’s the biggest quarterly setback the company’s ever seen, driven almost entirely by a $14.46 billion unrealized markdown on its Bitcoin stash. The firm’s average cost per coin sits at $75,537, while BTC traded around $78,374 on May 1—a gap that looks narrow on paper but translates to billions in red ink when you’re holding 818,334 coins.
The company didn’t sit still. MicroStrategy raised $11.68 billion so far this year, the largest equity issuance in the United States for 2026. That’s a staggering sum, and it went straight into more Bitcoin. The firm added 63,410 coins since January, a 22% jump in total holdings. As of May 3, the digital asset pile was worth $64.14 billion at market prices. But the loss is real, at least on paper, and it’s the kind of number that makes even crypto bulls wince.
STRC Preferred Stock Scales Fast
MicroStrategy’s Variable Rate Series A Perpetual Stretch Preferred Stock—ticker STRC—has blown up in size. Market cap now tops $8.5 billion. Daily trading volume runs around $375 million, with realized volatility at just 3%. That’s pretty calm for a crypto-adjacent instrument. Year-to-date, STRC pulled in $5.58 billion, a 189% spike compared to earlier periods. Cumulative dividends hit $692.5 million, paid out over 23 straight periods without a miss.
Shareholders will vote soon on switching STRC dividend payments to a semi-monthly schedule. Management thinks that’ll boost liquidity and smooth out pricing. The preferred stock has been a cash machine for MicroStrategy, and the company wants to keep that momentum going. If the vote passes, investors will see payouts twice a month instead of the current cadence.
STRC’s low volatility is kind of surprising given the wild swings in Bitcoin. The preferred stock seems to attract a different crowd—investors who want exposure to MicroStrategy’s BTC bet but with a steadier income stream. The 189% rise in funds raised this year shows there’s real appetite for this product. And the company’s leaning into it hard.
Software Business Holds Steady
The analytics side of MicroStrategy isn’t dead. Revenue climbed 11.9% to $124.3 million for the quarter. Gross margin stayed at 67.1%, which is solid for a software business. Cash reserves closed at $2.21 billion, giving the firm a cushion to ride out Bitcoin’s ups and downs. That cash pile is basically insurance against a deeper crypto winter.
But let’s be clear: the software business is a sideshow now. MicroStrategy’s fate is tied to Bitcoin. The $12.54 billion loss came from unrealized markdowns, meaning the company hasn’t sold anything. If BTC bounces back above the average cost basis, those losses evaporate. If it drops further, the red ink gets worse. It’s a binary bet, and the software revenue doesn’t move the needle much either way.
The 11.9% revenue growth is nice, but $124.3 million is a rounding error compared to the $64.14 billion in digital assets. MicroStrategy’s identity has shifted. It’s a Bitcoin proxy now, not a pure software play. The analytics division keeps the lights on and provides some diversification, but the real action is in the BTC holdings.
The company’s Bitcoin yield hit 9.4% year-to-date. That’s a proprietary metric MicroStrategy uses to track how much BTC it’s adding relative to dilution. The 63,410 coins added this year translate to roughly $4.97 billion in illustrative gains for shareholders, assuming you’re measuring in BTC terms rather than dollar terms. It’s a creative way to frame the story, and it works if you believe Bitcoin’s long-term trajectory is up.
MicroStrategy’s average cost of $75,537 per coin is above where BTC traded for chunks of early 2026. The market price of $78,374 on May 1 is only about 3.8% higher than the cost basis. That’s a thin margin, and it doesn’t leave much room for error. A 5% drop in Bitcoin would flip the position into the red again, triggering another round of unrealized losses.
The firm’s equity issuance strategy is aggressive. Raising $11.68 billion in a few months is unprecedented for MicroStrategy, and it’s the biggest U.S. equity raise of the year. The company’s basically printing shares and converting the proceeds into Bitcoin. It’s a bet that BTC will outpace the dilution, and so far the market seems willing to play along.
Cash reserves at $2.21 billion give MicroStrategy breathing room. That’s enough to cover operating expenses and keep the software business running without touching the Bitcoin. The gross margin of 67.1% means the analytics division is still profitable, which is good news for anyone worried about a cash crunch.
STRC’s 23 consecutive dividend payments show consistency. The $692.5 million in total payouts is a real number, and it’s attracted a loyal investor base. The semi-monthly payment proposal is meant to make STRC more liquid and tradable. If it passes, the preferred stock could see even tighter spreads and higher volumes.
The company’s future hinges on Bitcoin. If the price climbs back above $80,000 or $85,000, the unrealized losses shrink and the narrative flips positive. If BTC drops below $70,000, the losses balloon and questions about the strategy get louder. MicroStrategy’s all-in, and there’s no Plan B.
The 818,334 BTC position makes MicroStrategy one of the largest corporate holders in the world. That’s a lot of exposure, and it cuts both ways. The $14.46 billion unrealized markdown is painful, but it’s not a realized loss until the company sells. And MicroStrategy has shown zero interest in selling. The strategy is to accumulate and hold, no matter what the quarterly numbers say.
Frequently Asked Questions
How much Bitcoin does MicroStrategy currently hold?
MicroStrategy holds 818,334 Bitcoin as of the first quarter of 2026, a 22% increase since January.
What is MicroStrategy’s average cost per Bitcoin?
The company’s average cost per Bitcoin is $75,537, compared to a market price of approximately $78,374 on May 1.
What is STRC and how much has it raised?
STRC is MicroStrategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, which has raised $5.58 billion year-to-date, a 189% increase, and has a market cap exceeding $8.5 billion.
