Strategy posts $14.4 billion in Q1 bitcoin valuation losses…keeps buying despite the hit

Strategy, led by Michael Saylor, posted massive bitcoin valuation losses in the first quarter of 2026, but appeared to maintain its buying stance.

According to The Block on the 6th (local time), Strategy said in an 8-K filing recently submitted to the U.S. Securities and Exchange Commission (SEC) that it recorded approximately $14.46 billion in unrealized losses on its bitcoin holdings in Q1. However, it also booked a deferred tax asset of about $2.42 billion due to tax effects from the bitcoin price decline, offsetting part of the loss.

Despite the losses, its accumulation strategy remained intact. Strategy spent about $330 million from April 1 to 5 to purchase an additional 4,871 BTC, bringing total holdings to 766,970 BTC—worth roughly $53.0 billion at current prices.

Following the purchase, the average acquisition price edged down slightly to $75,644 from $75,694. The funds for the purchase were reported to have been raised via an ongoing at-the-market (ATM) equity issuance.

Still, with the current bitcoin price below the average purchase price, the company is estimated to be sitting on roughly $4.7 billion in unrealized losses overall.

Strategy also revamped its financing strategy last month. Moving away from a one-off fundraising approach, it shifted to a structure of phased issuance comprising $21.0 billion of common stock (MSTR), $21.0 billion of preferred stock (STRC), and an additional $2.1 billion of preferred stock (STRK).

This is part of its “42/42 plan” to raise a total of $84.0 billion through 2027 to buy more bitcoin. In addition, in December last year, it also bolstered its capital structure by introducing a dollar reserve framework to secure dividend-paying capacity and liquidity.