Strategy Claims ₱101.58 billion ($1.7 billion) Bitcoin Gain Despite ₱866.39 billion ($14.5 billion) Loss
Strategy's proprietary BTC Yield metric showed nearly ₱101.58 billion ($1.7 billion) in gains since January, but SEC filings reveal a ₱864 billion ($14.46 billion) unrealized loss for Q1 2026—highlighting the gap between internal metrics and GAAP accounting.
Key Takeaway
Strategy's proprietary metrics show gains while GAAP accounting reveals billions in unrealized losses.
Strategy, formerly MicroStrategy, claimed nearly $1.7 billion in Bitcoin gains since January using its proprietary BTC Yield metric. SEC filings tell a different story: the company recorded $14.46 billion in unrealized losses for the quarter ended March 31.
The company tracks performance through Bitcoin Per Share percentage change, which measures how much Bitcoin each share controls over time. Strategy's own filings acknowledge the metric doesn't account for existing and future liabilities, nor the preferential rights of preferred stockholders to dividends and assets in a liquidation scenario.
The disconnect comes from Strategy's funding strategy. The company established a $2.25 billion USD Reserve in February providing roughly 2.5 years of dividend and interest coverage. It raised capital through preferred stock STRC, which trades with an 11.5% annual dividend and hit $333 million in daily volume on April 8, enough to purchase more than 2,000 additional Bitcoin. Strategy acknowledged in filings that purchases financed with non-convertible notes or preferred stock can simultaneously lift BTC Yield, BTC Gain, and BTC Dollar Gain metrics while also increasing overall indebtedness and senior claims on the asset pool.
The company now holds 766,970 Bitcoin with a total acquisition cost of $58.02 billion, working out to an average cost of $75,644 per coin. With Bitcoin trading at $71,192, Strategy's holdings have an approximate market value of $54.60 billion against that cost basis. That puts the company $3.41 billion underwater on an aggregate cost-basis calculation. The company acquired 94,000 Bitcoin since the beginning of 2025, representing 2.2 times the newly mined supply over the period.
Strategy maintains it will not sell a single coin despite the paper losses. The company's digital assets carrying value dropped from $58.85 billion at year-end 2025 to $51.65 billion at March 31, 2026.
This article was written based on reporting from CryptoSlate.
