Breaking: Strategy Misses Wall Street Estimates By Huge Margin In Q1 Earnings Report

Strategy Inc. (NASDAQ:MSTR) reported a sharp earnings miss in the first quarter earnings report for 2026 after the market closed on Tuesday. The weak earnings were attributed to its Bitcoin losses, which were way beyond what analysts expected.

Strategy Announces Q1 Earnings Results

Strategy reported a loss per share of $38.25 on a diluted basis in the quarter ended March 2026 quarter. The figure was significantly worse than the Wall Street consensus estimate of a loss per share of 3.41.

The earnings miss was mainly caused by a huge unrealized loss on digital assets. Strategy announced that it had recorded a markdown of $14.46 billion on its Bitcoin holdings in the quarter, pushing the total net loss to $12.54 billion. The company had reported a much smaller net loss of $4.22 billion a year later.

The losses come as Bitcoin price plunged nearly 30% in the first quarter after the U.S.-Iran war weighed on the markets. However, the BTC price has since recovered well above the $81,000 level. This rebound has pushed Strategy’s BTC gains to $5.1 billion in the year-to-date timeframe.

Meanwhile, the quarterly revenue stood at 124.3 million, slightly under the expectation at 124.6 million but generally within the range. This is a positive growth in the core operations of the company compared to sales of $111.1 million in the same period last year.

BTC Buying Spree Continues Despite Losses

The company kept on growing its Bitcoin holdings despite the earnings pressure. As of early May 2026, Strategy holds 818,334 BTC, which marks an increase of 22% year-to-year. The company also had a BTC yield of 9.4% and a year-to-date BTC gain of 63,410 BTC.

The management cited onward momentum in its digital credit program. According to CEO Phong Le, “Adoption of Bitcoin continues to grow in 2026. Digital Credit, highlighted by STRC, has been a big success.” He added that the product has helped the company raise billions and at the same time has a relatively low volatility.

CFO Andrew Kang spotlighted its dividend consistency. He said that the company has paid out its dividends “on time and in full across 23 consecutive distributions.” In the meantime, Executive Chairman Michael Saylor observed that STRC has “scaled to $8.5 billion in just 9 months.”

Nonetheless, the MSTR stock reacted to the weak earnings report. It dropped 1.03% to $184.98 at the time of writing during the after hours on Tuesday, May 5.