Vong Lo, CEO of Strategy, said the company’s success depends on more than the bitcoin on its balance sheet.
summary
- First-quarter revenue rose 11.9% year over year to $124.3 million, the strategy said.
- Phong Le said cloud revenue grew 59% during the company’s strongest software quarter in years.
- The strategy’s Bitcoin model faces scrutiny as debt and losses mount.
In a post on X, he Argue This strategy’s enterprise software business remains a core part of the company’s long-term model.
The software unit provides strategy architects, cloud teams, enterprise customers, compliance systems and global operations that most digital asset companies don’t have, Lu said. “The success of the strategy is rooted in more than just bitcoin” is the main claim, but that depends on whether the software business can continue to grow while bitcoin attracts most of investor attention.
Software growth in Q1 supports Bitcoin costs
strategy I mentioned $124.3 million in total revenue for the first quarter of 2026, up 11.9% from $111.1 million a year earlier. The company also reported gross profits of $83.4 million, with a gross margin of 67.1%.
The first quarter was the strongest software quarter in a decade, buoyed by 12% revenue growth and 59% cloud revenue growth, Lu said. He added that controllable margin increased by 27%, which helped fund Bitcoin 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 in the same period last year.
Such as Crypto.news I mentionedthe strategy raised $25.3 billion in 2025 to expand its Bitcoin treasury strategy. This report also noted Phong Le’s focus on expanding STRC to support growth in Bitcoin per share.
Strategy is shifting to AI and enterprise data
Strategy has built an AI data foundation called Mosaic, Lu said. The platform connects large language models, hyperscales, and data warehouses into a secure enterprise data layer.
He also said the company is rebuilding its internal systems with artificial intelligence and expects more workflows to become automated.
As for strategy, the message is clear: the software arm is no longer just an old business. This is part of the company’s argument for why its Bitcoin treasury model can work on an institutional scale.
