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MicroStrategy Reports $8.32 Billion Loss on Bitcoin, Sells Holdings to Fund Dividends
MicroStrategy (MSTR) reported a substantial $8.32 billion loss on its digital asset holdings for the three months ended June 30, 2026, according to a recent regulatory filing. The company also revealed it has sold a portion of its bitcoin to fund preferred stock distributions and replenish its U.S. dollar reserves.
Quarterly Financials Reveal Major Loss
The reported loss for the quarter primarily consists of $8.31 billion in unrealized losses on the company's bitcoin holdings, with an additional $0.9 million in realized losses. The financial information, prepared by management, has not been audited or reviewed by the company's independent auditor, KPMG LLP.
As of June 30, 2026, MicroStrategy's bitcoin portfolio included:
- Total holdings: 846,000 bitcoin
- Carrying value: $49.67 billion
- Aggregate purchase price: $63.94 billion
- Average purchase price: $75,578 per bitcoin
Bitcoin Sales and Corporate Strategy
AdMicroStrategy sold bitcoin in two tranches. Between June 29 and June 30, the firm sold 1,363 bitcoin for $80.8 million, at an average price of $59,256. It sold an additional 2,225 bitcoin between July 1 and July 5 for $135.2 million, at an average price of $60,773.
The sales reduced the company's total holdings to 843,775 bitcoin as of July 5. The filing stated the proceeds were used for preferred stock distributions and to increase its USD reserve, which stood at $2.55 billion on that date. The company also noted its BTC Monetization Program, which allows for up to $1.25 billion in sales, remains fully available.
Accounting and Leadership Changes
The firm noted that because the cost basis of its bitcoin exceeded its fair market value on June 30, it was required to record a valuation allowance against its deferred tax benefit and deferred tax asset. This accounting measure reflects the significant unrealized losses during the quarter.
In a separate development, MicroStrategy designated its Executive Vice President and Chief Financial Officer, Andrew Kang, as the company's principal accounting officer, effective June 30. The change follows the retirement of Jeanine Montgomery, who served as Vice President and Chief Accounting Officer.