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Strategy Posts $12.54 Billion Q1 Loss as Bitcoin Decline Triggers Mark-to-Market Hit

The result highlights investor focus on the sustainability of its STRC preferred dividend program.

Overview

  • Strategy, which reported first-quarter results Tuesday, posted a $12.54 billion net loss after bitcoin fell from about $87,000 to $68,000 during the period.
  • The company holds 818,334 bitcoin, about 3.9% of supply, acquired at an average $75,537 per coin for a total cost near $61.81 billion.
  • Cash totaled roughly $2.25 billion at quarter end, which the company said covers about 18 months of dividend payments on STRC, its variable-rate perpetual preferred stock.
  • After selling 492,210 Class A shares between April 27 and May 3 for about $82 million, Strategy paused its weekly purchases, with Michael Saylor saying buys will resume next week.
  • STRC has grown to roughly $8.5 billion with a dividend near 11.5%, and critics question whether such payouts remain viable if bitcoin prices soften and funding conditions tighten.