Strategy, the company led by Michael Saylor and renowned for its bold Bitcoin investments, has reported a substantial unrealized loss of $14.46 billion in its Bitcoin portfolio for the first quarter of 2026. This downturn is attributed to the recent decline in cryptocurrency prices. According to the firm’s latest Form 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC), Strategy secured a deferred tax asset of $2.42 billion thanks to these losses and associated tax benefits. This maneuver provides the company an avenue to partially offset the balance sheet impact of its losses via tax-related strategies.
Continued Bitcoin purchases and impact on average cost
Despite acknowledging significant losses, Strategy has continued to expand its Bitcoin holdings. Between April 1 and April 5, the company acquired an additional 4,871 Bitcoins, investing roughly $330 million. With this latest round of purchasing, the company’s total Bitcoin reserve has risen to 766,970 coins, translating to a current market value of approximately $53 billion.
These recent buys have nudged down the company’s average cost per Bitcoin from $75,694 to $75,644. It was also noted that these acquisitions have been financed by proceeds from public share sales. As one of the leading institutional investors in the sector with the largest Bitcoin holdings, Strategy’s ongoing purchases underscore its commitment to a long-term approach—regardless of volatility in crypto prices.
Capital increases and long-term strategic plans
Although Bitcoin’s price has recently rallied, Strategy’s average acquisition cost still exceeds its current portfolio value, leaving the company with an overall unrealized loss of $4.7 billion. This data was compiled and reported by SaylorTracker, a platform that monitors Strategy’s crypto asset activity and overall position.
Last month, Strategy executed additional sales in its publicly traded MSTR shares, as well as in its two classes of preferred stock—STRC and STRK. Specifically, the company raised more than $21 billion each from MSTR and STRC preferred share sales, and an additional $2.1 billion from STRK preferred shares. Rather than opt for a one-time bulk financing, Strategy has continued to generate resources incrementally through ongoing offerings.
These efforts are in line with the company’s previously announced “42/42” plan. The strategy envisions raising $84 billion by 2027 through a mix of share and convertible bond issuances. The main objective is to direct this capital toward further Bitcoin acquisitions as funding becomes available.
In December of last year, Strategy also restructured its long-term capital framework. By bolstering its reserves with U.S. dollar-denominated assets, the company set out to provide more regular dividend payments and add flexibility to its digital asset management operations.
In the latest 8-K report, Strategy emphasized that alongside changes in its digital asset portfolio, the company is also prioritizing the exploration of broader financial alternatives within its capital structure.
These successive moves signal that, despite considerable fluctuations and downturns in the cryptocurrency market, Strategy continues to press forward with its long-term Bitcoin strategy—demonstrating its commitment to enduring through periods of volatility.
