Strategy books $12.77B Q1 loss as a $14.5B unrealized BTC write-down swamps software revenue.

A $14.46 billion unrealized loss on digital assets under fair-value accounting drove Strategy to a net loss of $12.77 billion — or $38.25 per diluted share — in Q1, even as software revenue climbed 11.9% year over year to $124.3 million. The loss confirms the core tension in the company's model: GAAP earnings are now almost entirely a function of Bitcoin's quarterly price move, not its underlying business.

Michael Saylor&#x27;s preferred metrics tell a different story. The company&#x27;s <a class="ticker-mention" href="/en-US/token/btc">BTC</a> Yield reached 9.4% year to date, translating to a BTC Gain of 63,410 coins and a dollar-denominated BTC $ Gain of $4.97 billion. Those figures measure Bitcoin exposure per diluted share — not cash flow, dividend coverage, or software health — but for Saylor they are the primary scorecard.

Strategy ended the period holding 818,334 BTC, roughly 3.9% of the fixed 21 million supply, with an average purchase…