🧠 Food for thought

Implications, context, and why it matters.

Strategy’s goal focuses on bitcoin holdings per share over accounting profit

• Strategy reported a Generally Accepted Accounting Principles (GAAP) net loss, yet it measures success by bitcoin per share through “BTC Yield,” also called “Bitcoin Yield” 1.
• In Q1 2026, bitcoin per share climbed 18% from a year earlier, matching the measure the company tracks most closely 2.
• That buildup came from heavy fundraising. Strategy raised more than US$25 billion in 2025 through stock sales and debt deals 2.
• The US$2.25 billion cash reserve helps fund dividends and eases near-term financing pressure 3.

Strategy’s move from debt to preferred stock reshapes its treasury model

• The quarterly loss also masks a financing shift toward perpetual preferred equity, which Strategy has called “digital credit” 3.
• By early 2026, the value of that preferred equity topped the company’s US$8.2 billion in outstanding convertible debt, which lowered refinancing risk and reduced exposure to maturity dates on securities that can convert into shares under certain conditions 3.
• The structure uses perpetual instruments to fund a volatile asset such as bitcoin. Unlike traditional bonds, those instruments have no fixed repayment date 3.
• It also brings a separate burden. Annual dividend obligations on the preferred stock reached about US$876 million by early 2026 3.