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MicroStrategy Reports $8.32 Billion Digital Asset Loss, Sells Bitcoin to Fund Dividends
Summary
MicroStrategy disclosed an $8.32 billion loss on its digital assets for the second quarter in a recent regulatory filing. The company also sold over 3,500 bitcoin to fund preferred stock distributions and bolster its cash reserves.
MicroStrategy (MSTR) has reported a significant loss on its digital asset holdings for the three months ending June 30, 2026. According to a regulatory filing, the company recorded a total loss of $8.32 billion, comprising $8.31 billion in unrealized losses and $0.9 million in realized losses. The financial information provided was prepared by management and has not been audited or reviewed by an independent accounting firm.
As of June 30, 2026, the company held 846,000 bitcoin with a carrying value of $49.67 billion, compared to an aggregate purchase price of $63.94 billion. This reflects an average purchase price of approximately $75,578 per bitcoin. The company noted that because the cost basis of its holdings exceeded fair value, a valuation allowance was required against its deferred tax asset associated with the unrealized losses.
The filing also detailed recent sales of the company's cryptocurrency assets. Between June 29 and June 30, 2026, MicroStrategy sold 1,363 bitcoin for aggregate proceeds of $80.8 million. An additional 2,225 bitcoin were sold between July 1 and July 5, 2026, for $135.2 million.
AdProceeds from the sales were used to fund preferred stock distributions and to replenish the company's U.S. dollar reserve. Following these transactions, MicroStrategy's holdings were reduced to 843,775 bitcoin, and its USD reserve stood at $2.55 billion as of July 5, 2026. The company also announced that Andrew Kang, its Executive Vice President and Chief Financial Officer, was designated as principal accounting officer, effective June 30, 2026.