MicroStrategy to Realize Q1 Bitcoin Loss for Tax Benefits, Consistent With 2022 Strategy

Strategy is prepared to sell bitcoin, Executive Chairman Michael Saylor confirmed on the company's Q1 2026 earnings call on May 6, 2026. The disclosure revives a tax-loss harvesting strategy the company first used in December 2022. Strategy sold 704 BTC on Dec.

8 million at $16,776 per coin. Two days later it repurchased 810 bitcoin. The sale was executed to carry back capital losses against previous capital gains and generate a tax benefit, Strategy said at the time.

Bitcoin fell 23 percent in Q1 2026 from $87,500 to $67,700. Under FASB fair value accounting rules that Strategy adopted on Jan. 1, 2025, the company marks its entire bitcoin holdings to market every quarter.

54 billion unrealized loss in the period. The accounting change pushed unrealized losses directly through the income statement. 2 billion deferred tax asset in Q1 2026.

CoinDesk reported that Michael Saylor's confirmation appeared to mark a shift for the world's largest publicly traded corporate holder of cryptocurrency, though the move would not be unprecedented.

Strategy's primary goal is to increase bitcoin per share, defined as the ratio of total bitcoin holdings divided by total diluted shares outstanding. 5 billion in annual dividend obligations from its perpetual preferred stock Stretch (STRC). MSTR was up 1 percent in pre-market trading on May 11, 2026.

Bitcoin traded above $81,000 the same day. The author of the CoinDesk story owns shares in Strategy (MSTR).

“MicroStrategy plans to carry back the capital losses resulting from this transaction against previous capital gains, to the extent such carrybacks are available under the federal income tax laws currently in effect, which may generate a tax benefit.”

“— Strategy statement on the 2022 sale. The 2022 tax-loss harvesting event occurred when bitcoin prices were lower than current levels. Strategy's latest signal comes as the cryptocurrency has rebounded from its Q1 lows but remains below the average cost basis of much of the company's stack.”