The strategy’s CEO, Phong Le, said the company’s success was not based solely on the Bitcoin held on its balance sheet.
Summary
- Strategy said first-quarter revenue rose 11.9% year-over-year to $124.3 million.
- Phong Le said cloud revenue rose 59% in the company’s strongest software quarter in years.
- Strategy’s Bitcoin model faces scrutiny as debt and losses mount.
In an article on X, he argued that Strategy’s enterprise software business remains a critical part of the company’s long-term model.
Le said the software unit offers strategy engineers, cloud teams, enterprise clients, compliance systems and global operations what most digital asset companies don’t have. “Success of the strategy is not limited to Bitcoin” is the main claim, but it depends on the ability of the software sector to continue to grow as Bitcoin attracts the attention of investors.
Q1 Software Growth Supports Bitcoin Costs
Strategy reported total revenue of $124.3 million in the first quarter of 2026, up 11.9% from $111.1 million a year earlier. The company also reported gross profit of $83.4 million, with a gross margin of 67.1%.
Le said the first quarter was the strongest software quarter in a decade, helped by revenue growth of 12% and cloud revenue growth of 59%. He added that the controllable margin increased by 27%, helping to finance Bitcoin’s operating expenses.
The update comes as Strategy’s Bitcoin strategy remains under scrutiny. The company reported a net loss of $12.54 billion in the first quarter, compared to a loss of $4.22 billion for the same period last year.
As reported by Crypto.news, Strategy had raised $25.3 billion in 2025 to expand its Bitcoin treasury strategy. This report also highlights Phong Le’s focus on STRC expansion to support Bitcoin per share growth.
Strategy shifts to AI and enterprise data
Le said Strategy has built an AI data foundation called Mosaic. The platform connects large language models, hyperscalers and data warehouses into a secure enterprise data layer.
He also said the company is rebuilding its internal systems with AI and expects more workflows to be automated.
For Strategy, the message is clear: the software sector is no longer just a traditional activity. This is part of the company’s argument for why its Bitcoin treasury model can work on an institutional scale.
