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Strategy disclosed a large unrealized loss on its Bitcoin holdings while raising capital to resume purchases of the cryptocurrency, according to filings with the US Securities and Exchange Commission.
The company reported a $14.46bn unrealized loss on its digital asset holdings for the first three months of 2026, reflecting a gap between what Strategy paid for its Bitcoin, about $75,644 per coin on average, and current market values. A $2.42bn tax benefit partly offset the impact, but does not reduce exposure to price swings.
Strategy also resumed Bitcoin purchases in early April, acquiring 4,871 $BTC for $329.9mn between 1-5 Apr after reporting no purchases in the final days of March.
The filings show the company continuing to pair equity issuance with Bitcoin accumulation as it manages the impact of mark-to-market losses on its balance sheet.
STRC drives funding strategy
The company's Bitcoin purchases are being financed through ongoing equity issuance, with Strategy raising about $474mn between 30 Mar and 5 Apr through at-the-market (ATM) sales of its common stock (MSTR) and preferred securities (STRC).
In recent issuances, Strategy leaned on its STRC preferred shares to drive the capital raise, using the yield-bearing instrument to limit dilution from common stock and tap income-focused investors. The company maintained the dividend rate on STRC at 11.5% on an annualized basis, reinforcing its positioning as an income product for investors.
Treasury strategy expands
Strategy, formerly MicroStrategy, has shifted from its core software business to a Bitcoin-focused treasury model, using proceeds from equity and debt issuance to accumulate the cryptocurrency as its primary reserve asset.
The company holds 766,970 $BTC acquired at an average price of about $75,644, with a total purchase cost of roughly $58bn. The holdings were valued at about $51.3bn as of 6 Apr, according to the company's website.
Risk sentiment improves
The company's latest purchase follows a roughly 23% decline in Bitcoin over the first quarter. The cryptocurrency traded at $69,757, up 1.1% on the day as of 15:43 UTC.
Strategy's shares rose alongside $BTC on Monday amid a broader market recovery as investors tracked progress in US-Iran ceasefire negotiations.Its Nasdaq-listed stock (MSTR) was up about 5.9% on the day, trading at $126.84.