Strategy reported a net loss of $12.54 billion in Q1 and hinted for the first time at potentially selling BTC to pay dividends; Coinbase laid off approximately 700 employees and restructured its organization to focus on AI.

According to Mars Finance and BBX data, yesterday (May 5th) saw the dual release of earnings reports for crypto concept stocks and a wave of industry layoffs. Key developments are as follows: Strategy, Inc. (NASDAQ: $MSTR) released its Q1 2026 earnings report (official press release) after the market closed on May 5th: a net loss of $12.54 billion (-$38.25 per share), primarily driven by unrealized losses on $14.46 billion in Bitcoin holdings—Bitcoin prices fell from approximately $87,000 to approximately $68,000 during Q1; revenue was $124.3 million (up 11.9% year-over-year), slightly exceeding the consensus expectation of $123.2 million. As of May 3, the company held a total of 818,334 BTC, with an average price of $75,537 and a total cost of $61.81 billion. In Q1 alone, the company added approximately 89,600 BTC (costing approximately $5.5 billion), marking the second-largest single-quarter purchase in the company's history. The company's Q1 annualized return (BTC Yield) continued to improve compared to the beginning of the year; specific figures are subject to official financial reports. Notably, the company mentioned for the first time in its risk disclosure the possibility of selling Bitcoin to fulfill an annual dividend obligation of approximately $1.5 billion; current reserves only cover approximately 18 months of dividend payments. Management described the STRC preferred stock financing as a "great success" during the earnings call, raising approximately $5.58 billion through STRC in Q1. Coinbase Global, Inc. (NASDAQ: $COIN) CEO Brian Armstrong announced on May 5th via the X platform and an official memo that the company will lay off approximately 700 employees (about 14% of its global workforce) due to the crypto market downturn and the rapid reshaping of the company's operating model by AI. Armstrong stated that AI has enabled engineering teams to complete tasks that previously took weeks in just a few days. The company will streamline its management structure to a maximum of five levels below the CEO/COO and replace traditional functional departments with "AI-native pods." Each manager will be directly responsible for at least 15 subordinates and will maintain their role as an individual contributor. Affected employees in the US will receive at least 16 weeks of base salary plus an additional two weeks of severance pay for each year of service. The company's Q1 2026 financial report will be released after the market closes tomorrow (May 7th). Current analyst consensus estimates revenue of approximately $1.5 billion and EPS of approximately $0.23-$0.36.