Chief Strategy Officer Phong Le said the company’s success relies on more than just Bitcoin 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 grew 59% during the company’s strongest software quarter in years.
- Strategy’s Bitcoin model faces scrutiny as debt and losses mount.
In a post on X, he argument Strategy’s enterprise software business remains a core part of the company’s long-term model.
Le told that the software unit provides strategy engineers, cloud teams, enterprise clients, compliance systems and global operations that most digital asset companies do not have. “The strategy’s success is rooted in more than just Bitcoin” is the key claim, but it depends on whether the software business can continue to grow while Bitcoin attracts the most attention from investors.
Software Growth in Q1 Supports Bitcoin Prices
Strategy reported $124.3 million in total revenue in the first quarter of 2026, up 11.9% from $111.1 million a year earlier. The company also posted a gross profit of $83.4 million, with a gross margin of 67.1%.
Le told the first quarter was the strongest software quarter in a decade, helped by 12% revenue growth and 59% cloud revenue growth. He added that controllable margin increased by 27%, which helped fund 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 with a loss of $4.22 billion in the same period last year.
Like Crypto.news reportedStrategy had raised $25.3 billion in 2025 to expand its Bitcoin treasury strategy. That report also highlighted Phong Le’s focus on expanding STRC to support Bitcoin growth per share.
Strategy draws on AI and business data
He told him that Strategy has built an AI database called Mosaic. The platform links large language models, hyperscalers, and data warehouses into a secure enterprise data layer.
He also said the company is rebuilding internal systems with AI and expects more workflows to be automated.
For Strategy, the message is clear: the software division is no longer just a legacy business. It’s part of the company’s argument for why its Bitcoin treasury model can operate on an institutional scale.
