Michael Saylor’s Strategy Sees Major Bitcoin Loss Amid Continued Purchases
Michael Saylor’s company, Strategy (MSTR), reported a staggering $14.5 billion unrealised loss for the first quarter of 2026 due to the declining price of bitcoin, as detailed in a recent securities filing. Despite this significant loss, shares of Strategy experienced a boost of approximately 6% in early trading, coinciding with bitcoin prices rising by 4% to surpass $69,500 per coin.
In a notable move, Strategy bought about $330 million worth of bitcoin between April 1 and April 5, 2026. This latest acquisition reinforces its status as the largest corporate holder of the cryptocurrency. However, since the start of the year, bitcoin’s value has depreciated by roughly 20%, impacting the approximate $58 billion worth of bitcoin owned by Strategy. The company’s holdings have dropped below their average purchase price of more than $75,000 per bitcoin as of the end of the last quarter.
To finance these purchases, Strategy engaged in selling both common stock and "Stretch" preferred shares. According to regulatory disclosures, this method of funding resulted in the sale of around $300 million in common and preferred shares between March 30 and March 31, followed by an additional $175 million from April 1 to April 5. While common stock sales lead to dilution for investors, preferred shares avoid dilution but impose fixed obligations, complicating the company’s financial landscape further.
Expected to report its first-quarter earnings on April 30, Strategy has previously disclosed an operating loss of $17.4 billion and a net loss of $12.6 billion for the previous quarter. For the fiscal year, these figures reflected an operating loss of $5.4 billion and a net loss of $4.2 billion. During a recent earnings call, CEO Phong Le acknowledged that many investors might be experiencing their first downturn, particularly for those who purchased bitcoin or MSTR shares over the past year.
Le urged investors to remain steadfast in their commitment, recalling the fundamentals that propelled them to invest in bitcoin. He noted that long-term holders have historically been rewarded for their resilience during downturns. Notably, Saylor expressed optimism about a more positive regulatory landscape for cryptocurrency, citing the Clarity Act, which aims to establish a federal regulatory framework for digital assets. The Act has passed in the House of Representatives but is currently stalled in the Senate.
In summary, while Michael Saylor’s Strategy has faced significant financial strains with substantial unrealised losses, the company continues to expand its bitcoin holdings, banking on a potential recovery in the cryptocurrency market as well as a more favourable regulatory environment in the future.
