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MicroStrategy Reports $8.32 Billion Q2 Loss on Bitcoin Holdings, Sells BTC
Summary
The enterprise software firm disclosed a significant unrealized loss on its digital asset portfolio for the second quarter and sold over 3,500 BTC to fund preferred stock distributions and its cash reserves.
MicroStrategy (MSTR) reported a digital asset loss of $8.32 billion for the three months ended June 30, 2026, according to a recent regulatory filing. The firm, a prominent corporate holder of bitcoin, also disclosed recent sales of the cryptocurrency to fund dividend payments and bolster its cash position.
Quarterly Financials Detail Loss
The vast majority of the second-quarter loss was unrealized, with the company booking $8.31 billion in unrealized losses against just $0.9 million in realized losses. This accounting treatment reflects the decline in bitcoin's market value relative to the company's purchase price.
As of June 30, 2026, MicroStrategy held 846,000 bitcoin. The filing detailed:
- Carrying Value: $49.67 billion
- Aggregate Purchase Price: $63.94 billion
- Average Purchase Price: $75,578 per bitcoin
The company noted that because the cost basis of its bitcoin exceeded its fair value, it was required to record a valuation allowance against its deferred tax asset. The financial information was prepared by management and has not been audited or reviewed by its accounting firm, KPMG LLP.
Bitcoin Sales Fund Corporate Needs
AdMicroStrategy sold a total of 3,588 bitcoin between June 29 and July 5, 2026, generating aggregate proceeds of $216 million. The sales were executed in two tranches:
- June 29-30: 1,363 bitcoin sold for $80.8 million, at an average price of $59,256.
- July 1-5: 2,225 bitcoin sold for $135.2 million, at an average price of $60,773.
The proceeds were used to fund preferred stock distributions and replenish the company's U.S. dollar reserve. Following the sales, MicroStrategy's holdings stood at 843,775 bitcoin as of July 5, with its USD reserve at $2.55 billion.
Strategic Context and Management Update
The sales were executed under a new BTC Monetization Program announced on June 29, which allows the company to generate up to $1.25 billion in proceeds from bitcoin sales for its reserve. The company also confirmed it did not sell any shares under its at-the-market offering or conduct any share repurchases during the same late June to early July period.
Separately, MicroStrategy announced that Executive Vice President and CFO Andrew Kang was designated as principal accounting officer, effective June 30, 2026. He succeeds the retiring Jeanine Montgomery.