In an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, Michael Saylor’s MicroStrategy disclosed an unrealized loss of $14.46 billion on its Bitcoin portfolio for the first quarter of 2026. Consequently, the company recognized a $2.42 billion deferred tax asset, intending to leverage these paper losses for future tax deductions.
Despite the downward market pressure, MicroStrategy has not slowed its aggressive investment strategy. The filing reveals that between April 1 and April 5, the company purchased 4,871 Bitcoin for approximately $330 million. Following this acquisition, its total Bitcoin holdings have climbed to 766,900, valued at roughly $53 billion at current market prices.
Continuing the '42/42' Capital Expansion Plan
With the latest round of acquisitions complete, MicroStrategy has slightly lowered its average cost basis per Bitcoin to $75,644, down from the $75,694 reported on March 31. According to data from SaylorTracker, the company is currently sitting on an unrealized loss of approximately $4.7 billion, as the acquisition costs remain higher than the current market price.
To maintain its funding momentum, MicroStrategy is actively executing its '42/42' capital plan. The initiative aims to raise $84 billion through equity financing and convertible notes to fund further Bitcoin purchases. The company previously adjusted its 'At-the-Market' (ATM) offering program, shifting toward a strategy of incremental sales of common and preferred stock to secure steady cash flow rather than relying on single, large-scale financing rounds.
Last December, the company further refined its long-term capital structure by introducing a U.S. dollar reserve system. This move is intended to bolster financial flexibility, supporting both future dividend payments and the continued expansion of its digital asset treasury.
