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Story: MicroStrategy Takes $12.54 Billion Hit as BTC Holdings Sit Below Cost Basis

By Sydney TheCMO

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STRC Preferred Stock Scales Fast. MicroStrategy's Variable Rate Series A Perpetual Stretch Preferred Stock—ticker STRC—has blown up…

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Software Business Holds Steady. The analytics side of MicroStrategy isn't dead. Revenue climbed 11.9% to $124.

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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.

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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.

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Shareholders will vote soon on switching STRC dividend payments to a semi-monthly schedule. Management thinks that'll boost liquidity and smooth out pricing.

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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…

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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.

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But let's be clear: the software business is a sideshow now. MicroStrategy's fate is tied to Bitcoin. The $12.

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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.

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Related: Strategy Drops $2.57 Billion on BTC as AJC Mining Rolls Daily Settlement Cloud Contracts

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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.

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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.

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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.

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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.

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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.

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