Understanding Bitcoin Gain
Bitcoin Gain is a proprietary metric introduced by MicroStrategy to measure the net appreciation of Bitcoin per diluted share. This metric accounts for both newly acquired Bitcoin and the dilution effects resulting from issuing new shares to facilitate these purchases.
MicroStrategy's Executive Chairman Michael Saylor stated that this metric is the closest to the company's net income in the context of Bitcoin. He emphasized that the distinction of Bitcoin Gain from standard accounting methods lies in its relevance to companies operating under the Bitcoin standard.
In the first two weeks of April 2026, MicroStrategy realized a gain of 17,585 Bitcoin, valued at approximately $1.3 billion. Bitcoin Gain is the metric most similar to net income under the Bitcoin standard.
It is important to note that this metric differs from Generally Accepted Accounting Principles (GAAP), which recently recorded MicroStrategy's unrealized losses on Bitcoin holdings in Q1 2026 at $14.46 billion, and this GAAP report fell short of analysts' expectations.
Reasons Behind MicroStrategy's Recent Bitcoin Operations
Through the issuance of common stock in the market and its STRC preferred stock program, MicroStrategy purchased approximately 18,798 Bitcoin in the first two weeks of April 2026. After accounting for equity dilution, the net gain amounted to 17,585 Bitcoin.
This purchase increased MicroStrategy's total Bitcoin reserves to approximately 780,897 Bitcoin, with a total investment of around $59 billion and an average purchase price close to $75,580 per Bitcoin.
Despite this, the current trading price of Bitcoin is near $73,954, leaving the overall cost basis of the portfolio slightly lacking. Therefore, while MicroStrategy's Bitcoin Gain metric highlights the efficiency of its Bitcoin accumulation, it does not guarantee profitability for investors.
Bitcoin Gain does not reflect cash flow, traditional earnings quality, or the rising dividend demands of the company's preferred stock.
Market Observers Weigh In
Market observers note that MicroStrategy's performance will depend on its ongoing capital acquisition capabilities and the trajectory of Bitcoin prices.
The Growing Importance of STRC Preferred Stock
Co-CEO Phong Le emphasized the significant role of STRC, the company's perpetual preferred stock. Before transforming into one of the world's most important Bitcoin companies, MicroStrategy was a leading business intelligence firm and leveraged innovative financial instruments like STRC to drive its cryptocurrency strategy. STRC has recently garnered widespread attention due to increased retail trading activity and enhanced liquidity.
Le pointed out that STRC's liquidity has doubled monthly, reflecting growing investor demand. He also mentioned that the dynamics of record dates hold significant meaning within the preferred stock structure.
Despite the rising popularity of STRC, its design aims to keep its price generally around $100, regardless of Bitcoin market fluctuations.