STRD Strategy Inc

BEARISH Impact: 7/10 8-K
Horizon weeks Filed May 5, 2026 Processed 1mo ago SEC 0001050446-26-000024
8-K Item 2.02: Earnings release
Latest settled — T+20d
STRD ▼ -9.02% at T+20d
SHORT call ✓ call won +9.02% · α vs SPY +11.80% · entry $76.05 → $69.19
Next anchor: T+60d in 7w
Last close $68.65 (close Jun 8) · +9.73% from $76.05 entry (call sign-flipped)
Entry anchored
May 5, 2026
via day open
T+1d
-0.30%
call +0.30% · α -0.03%
$75.82
settled 5w ago
T+5d
+1.25%
call -1.25% · α -0.12%
$77.00
settled 29d ago
T+20d
-9.02%
call +9.02% · α +11.80%
$69.19
settled 7d ago
T+60d
call — · α —
in 7w

Price Chart

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Executive Summary

Strategy Inc reported Q1 2026 revenue of $124.3M (+11.9% YoY), but posted a GAAP net loss of $12.54B ($38.25/share) driven by a $14.46B unrealized loss on its bitcoin holdings. The company raised $7.37B in Q1 via ATM offerings, grew bitcoin holdings 22% YTD to 818,334 BTC, and achieved a 9.4% BTC Yield. The massive unrealized loss from bitcoin's price decline overshadows the software revenue growth and capital-raising success.

Key Financial Metrics

Gross Margin
67.1%

Actionable Insight

The stock will trade on bitcoin's price direction, not on software earnings. The $14.46B unrealized loss reflects bitcoin's decline from ~$93K at Dec 31, 2025 to ~$68K at Mar 31, 2026. Monitor bitcoin price recovery and continued STRC demand as the primary catalysts. The $2.21B cash reserve provides ~2.5 years of dividend coverage, reducing near-term distress risk.

Key Facts

  • Q1 2026 total revenue $124.3M, +11.9% YoY from $111.1M
  • GAAP net loss $12.54B ($38.25/share diluted) vs $4.22B ($16.49/share) YoY
  • Unrealized loss on digital assets $14.46B in Q1 2026 vs $5.91B in Q1 2025
  • Bitcoin holdings grew 22% YTD to 818,334 BTC as of May 3, 2026
  • Raised $7.37B in Q1 2026 via ATM offerings ($5.30B MSTR, $2.07B STRC)
  • BTC Yield of 9.4% achieved YTD 2026
  • Cash and cash equivalents $2.21B as of March 31, 2026, down from $2.30B at Dec 31, 2025
  • Subscription services revenue $58.9M, +58.7% YoY
  • Gross margin 67.1% vs 69.4% in Q1 2025
  • Preferred stock dividends $229.5M in Q1 2026 vs $10.6M in Q1 2025

Financial Impact

Net loss of $12.54B driven by $14.46B unrealized loss on bitcoin; revenue grew $13.2M YoY to $124.3M

net incomeepsdigital assets carrying valueshareholder equity

Risk Factors

  • Further bitcoin price decline would amplify unrealized losses and potentially trigger margin calls on debt covenants
  • Massive ongoing dilution from ATM programs (333.9M diluted shares, +30% YoY)
  • Preferred dividend obligations growing rapidly ($229.5M in Q1 2026, up from $10.6M YoY)
  • Software business remains small relative to bitcoin exposure ($124.3M quarterly revenue vs $51.6B digital assets)

Market Snapshot

Exchange
Nasdaq
Sector
Finance Services
Analyst Consensus
88% bullish (25 analysts)

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001050446-26-000024
Document: mstr-20260505.htm0001050446-26-000024
Document: 0001050446-26-000024-index-headers.html0001050446-26-000024
Document: 0001050446-26-000024-index.html0001050446-26-000024
Document: 0001050446-26-000024.txt0001050446-26-000024
8-K Data (Synthetic)0001050446-26-000024
28 reports for STRD
Performance horizon

Track record builds as more directional reports settle.

Filters
Rows
Reports for STRD — sortable, filterable
Type Now
Jun 8, 2026
1d ago
8-K
NEUTRAL ★ 2/10
$69.68 awaiting T+1awaiting T+1$68.65 (−1.48%)
Jun 8, 2026
1d ago
8-K / DEFA14A
NEUTRAL ★ 4/10
$67.70 awaiting T+1awaiting T+1$68.65 (+1.40%)
Jun 3, 2026
6d ago
DEFA14A
NEUTRAL ★ 3/10
$70.00 $67.70▼ −3.29%▼ −0.69%$68.65 (−1.93%)
Jun 2, 2026
7d ago
DEFA14A
NEUTRAL ★ 4/10
$69.19 $70.00▲ +1.17%▲ +0.77%$68.65 (−0.78%)
Jun 1, 2026
8d ago
DEFA14A
NEUTRAL ★ 2/10
$69.94 $69.19▼ −1.07%▼ −0.34%$68.65 (−1.84%)
Jun 1, 2026
8d ago
8-K
NEUTRAL ★ 4/10
$70.87 $69.94▼ −1.32%▼ −1.46%$68.65 (−3.13%)
May 29, 2026
11d ago
DEFA14A
NEUTRAL ★ 4/10
$70.87 $69.94▼ −1.32%▼ −1.46%$68.65 (−3.13%)
May 28, 2026
12d ago
DEFA14A
NEUTRAL ★ 3/10
$70.11 $70.87▲ +1.08%▲ +0.83%$68.65 (−2.08%)
May 27, 2026
13d ago
DEFA14A
NEUTRAL ★ 3/10
$72.60 $70.11▼ −3.43%▼ −3.67%$68.65 (−5.44%)
May 26, 2026
14d ago
DEFA14A
NEUTRAL ★ 2/10
$73.52 $72.60▼ −1.25%▼ −1.80%$68.65 (−6.62%)
Showing 10 of 28

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