Strategy has reported a net loss of $12.5 billion for Q1 2026, largely due to unrealized losses on its Bitcoin holdings. The company, which holds 818,334 BTC, is contemplating selling a portion of its Bitcoin to pay dividends, a move that has positively impacted its stock price, which rose by 3% despite the disappointing earnings. The potential sale of Bitcoin is part of a strategy to manage financial obligations, including $8.17 billion in long-term debt and $10 billion in preferred share redemption value. In Q1, Strategy purchased 89,599 BTC for $7.25 billion, but the book value of its digital assets decreased by $720 million due to Bitcoin's price decline. The company is also focusing on its STRC preferred stock, which has grown to $8.5 billion in assets under management, becoming a significant financing tool. Despite the losses, Strategy's founder, Michael Saylor, emphasized the company's ability to leverage Bitcoin assets to support shareholder returns, highlighting the creation of a new BTC-backed asset class in traditional financial markets.