MicroStrategy saw a huge Bitcoin loss of $14.4 billion in Q1, and Saylor softened his stance on selling BTC to pay out high dividends.

MicroStrategy (MicroStrategy, MSTR) released its first-quarter financial report and also held an online earnings call. The core focus of this report remains the company’s long-term investment strategy in Bitcoin (BTC) and its impact on financial performance. Data shows that, due to unrealized losses on digital assets of as much as $14.4 billion, MicroStrategy’s earnings per share (EPS) for the first quarter came in at a loss of $38.25. Despite recording an accounting loss, MicroStrategy continues to expand its cryptocurrency reserves, with its total holdings already exceeding 818k BTC. In addition, founder Michael Saylor said the company may sell a small amount of BTC to fund the Preferred Stock STRC’s annualized dividend yield of up to 11.5%.

Strategy first-quarter earnings data performance

According to MicroStrategy’s first-quarter 2026 financial report, total revenue for the first quarter was $124.3 million, operating loss was $14.47 billion, mainly driven by an unrealized loss of $14.46 billion on digital assets related to holding Bitcoin. The financial discrepancy primarily stems from fair value accounting standards, where large unrealized losses must be recognized due to fluctuations in the Bitcoin price. This indicates that MicroStrategy’s financial report is directly influenced by the cryptocurrency market, rather than representing a true loss caused by actual selling.

Net loss for the first quarter of 2026 was $12.54 billion, and earnings per share (EPS) was a loss of $38.25.

Bitcoin reserve strategy and capital market operations

Even in the face of book losses, MicroStrategy continues to maintain an aggressive Bitcoin accumulation strategy. As of the end of the first quarter, total holdings surpassed 818k BTC, firmly making it the world’s largest corporate holder. To support this strategy, the company uses capital market tools for financing, such as issuing Preferred Stock to raise funds to buy digital assets. This move expands the asset base and also creates a high linkage between the company’s performance in traditional credit markets and digital markets.

The balance sheet shows the company holds about $2.25 billion in liquidity reserves, enough to cover long-term interest and dividends. However, because the company’s enterprise value is deeply tied to the Bitcoin price, future stock performance will depend heavily on the long-term development of the cryptocurrency market—not simply on software revenue growth.

Saylor впервые acknowledged selling Bitcoin

Founder Michael Saylor said the company may sell a small amount of BTC to pay the Preferred Stock STRC’s annualized dividend of up to 11.5%.

Use the money raised from issuing Preferred Stock to buy BTC, let Bitcoin rise proportionally, then sell part of the BTC to pay dividends. As long as the company can continue issuing Preferred Stock to reach the break-even point, this model can keep running!

But Saylor emphasized that the purpose is to improve shareholder flexibility, not to change the core HODL strategy. However, this statement has sparked widespread discussion, and some also attribute this morning’s Bitcoin drop to it.

This article “MicroStrategy’s huge Bitcoin loss of $14.4 billion in the first quarter; Saylor hints at selling BTC to pay high dividends” first appeared on Chain News ABMedia.