MicroStrategy Reports $8.32B Q2 Loss on Bitcoin, Sells Holdings to Fund Dividends

MicroStrategy (MSTR) reported an $8.32 billion loss on its digital asset holdings for the second quarter and has begun selling bitcoin to fund preferred stock distributions and replenish its cash reserves. The move, detailed in a regulatory filing, marks a notable shift for the company, which has historically focused on accumulating the cryptocurrency.

Second-Quarter Digital Asset Impairment

For the three months ended June 30, 2026, MicroStrategy recorded the multi-billion dollar loss, which comprised $8.31 billion in unrealized losses and $0.9 million in realized losses. This accounting treatment reflects the decline in bitcoin's price relative to the company's purchase price.

According to the filing, the company held 846,000 bitcoin as of the quarter's end. Key figures include:

• Carrying Value: $49.67 billion
• Aggregate Purchase Price: $63.94 billion
• Average Purchase Price: $75,578 per bitcoin

The company noted that the financial information was prepared by management and has not been audited or reviewed by its independent accounting firm, KPMG LLP.

Bitcoin Sales Bolster Cash Reserves

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MicroStrategy disclosed two recent tranches of bitcoin sales. Between June 29 and June 30, the company sold 1,363 bitcoin for approximately $80.8 million. It sold an additional 2,225 bitcoin for $135.2 million between July 1 and July 5.

The sales reduced the company's total holdings to 843,775 bitcoin as of July 5. Proceeds were used for preferred stock distributions and to increase its U.S. dollar reserve, which stood at $2.55 billion on that date. The sales are part of a new BTC Monetization Program, announced June 29, which allows the company to generate up to $1.25 billion in additional proceeds from its holdings.

Context for Investors

For investors, the large reported loss is primarily a non-cash impairment charge driven by accounting rules that require digital assets to be marked down when their value falls below the cost basis, without allowing for upward revisions until a sale. The recent sales allow MicroStrategy to realize some of these losses, which can have tax implications, while also generating cash for corporate obligations.

This strategy indicates a more active approach to treasury management, moving beyond pure accumulation to using its vast bitcoin holdings to manage its financial operations. The company also announced that Executive Vice President and CFO Andrew Kang was designated as principal accounting officer, effective June 30, following the retirement of Jeanine Montgomery.