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Strategy, which is the $64 billion bitcoin treasury company led by Michael Saylor, has one overriding objective: acquire as much bitcoin as possible as quickly as possible. However, the firm posted 11-figure losses for the second quarter running, as the bitcoin price currently sits well below the all-time high of $125,000 reached in October of last year. Still, Strategy has continually lined up new funding sources that have allowed it to keep buying bitcoin in 2026.<\/span><\/p>\n In its 2026 first-quarter earnings report<\/span> released on Tuesday, Strategy reported a net loss of $12.54 billion, which followed <\/span>$17.44 billion in losses for the final quarter of 2025<\/span>. The overwhelming share of those figures consists of unrealized declines associated with bitcoin\u2019s lower price. The company has never sold any of the bitcoin it has acquired; however, <\/span>it looks increasingly open to that eventual possibility<\/span>. Its stash now stands at 818,334, or roughly 3.9% of the entire bitcoin supply. These holdings currently carry a market value of $64.14 billion with the bitcoin price around $78,000.<\/span><\/p>\n Despite the large unrealized losses showing up on paper, the company that invented the corporate bitcoin treasury model used the earnings release to highlight the performance of its digital credit instrument called Stretch, or STRC. Stretch is Strategy\u2019s Variable Rate Series A Perpetual Stretch Preferred Stock. Investors buy shares of this preferred equity product, and the company channels the proceeds straight into bitcoin purchases. Holders receive variable-rate dividends supported by the firm\u2019s bitcoin holdings, which the company and its supporters expect to rise substantially over time. The instrument has attracted $5.58 billion year to date and more than $8 billion in the nine months since it originally launched.<\/span><\/p>\n To put it more simply, Strategy is basically borrowing money at 11% per year (at current rates) and using it to buy bitcoin because they think the price of the crypto asset will increase by more than 11% per year. The company is effectively a levered play on bitcoin. That said, previous funding mechanisms involved much lower costs of the borrowed capital.<\/span><\/p>\n \u201cStrategy is the dominant issuer of Digital Credit in the world, with over $13.5 billion of preferred equity outstanding, supported by a fortress Bitcoin balance sheet,\u201d said Strategy CFO Andrew Kang. \u201cWe continue to extend our track record of servicing our dividends, having now met our payment obligations on time and in full across 23 consecutive distributions, totaling over $693 million since the launch of our preferred equity products in early 2025.\u201d<\/span><\/p>\n While the unrealized losses have drawn scrutiny, Strategy keeps its attention on lifting bitcoin holdings per share rather than chasing dollar-denominated quarterly profits. The company measures success through metrics such as BTC yield, which reached 9.4% in the first four months of 2026, and it added about 63,410 bitcoin to its treasury during that stretch. Executives believe bitcoin will keep expanding its role as <\/span>a global, apolitical reserve asset<\/span> and therefore rise in value over time.<\/span><\/p>\n Strategy CEO @phongle<\/a> refuted my claim that $STRC<\/a> is a Ponzi scheme by arguing it\u2019s \u201ctransparent\u201d and \u201cvery clear what we\u2019re doing.\u201d But I never accused Strategy of hiding the scheme. In contrast, I called STRC the most obvious Ponzi precisely because $MSTR<\/a> is so open about it.<\/p>\n\n