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MicroStrategy Reports $8.32B Quarterly Loss on Bitcoin, Sells Holdings to Fund Dividends
Summary
The business intelligence firm disclosed a significant impairment charge on its digital assets for the second quarter and confirmed recent sales of bitcoin to cover corporate obligations and replenish cash reserves.
MicroStrategy (MSTR) reported a staggering $8.32 billion loss on its digital asset holdings for the three-month period ending June 30, 2026, according to a recent regulatory filing. The loss was primarily composed of $8.31 billion in unrealized losses on its bitcoin portfolio, reflecting the gap between the cryptocurrency's market price and the company's carrying value.
Financial Details and Bitcoin Sales
The company's filing, which it noted was prepared by management and has not been audited by KPMG LLP, provided a detailed snapshot of its holdings. As of June 30, MicroStrategy held 846,000 bitcoin with a carrying value of $49.67 billion, against an aggregate purchase price of $63.94 billion.
This reflects an average purchase price of $75,578 per bitcoin. To meet corporate obligations, the company sold bitcoin in two tranches:
- June 29-30: Sold 1,363 bitcoin for $80.8 million at an average price of $59,256.
- July 1-5: Sold an additional 2,225 bitcoin for $135.2 million at an average price of $60,773.
AdThe proceeds were used to fund preferred stock distributions and replenish its U.S. dollar reserve, which stood at $2.55 billion as of July 5. The sales reduced the company's total holdings to 843,775 bitcoin.
Corporate Strategy and Accounting Impact
The recent sales were executed under a new BTC Monetization Program announced on June 29, which allows the company to sell bitcoin to generate up to $1.25 billion. For investors, these sales mark a strategic use of the company's vast crypto holdings to manage its balance sheet and shareholder payouts, rather than solely for accumulation.
From an accounting perspective, MicroStrategy noted that because the cost basis of its bitcoin exceeded its fair value on June 30, it was required to record a valuation allowance against its deferred tax asset associated with the unrealized losses. Selling bitcoin below its average purchase price allows the company to realize these losses, which can have implications for its tax position. The filing also noted the appointment of CFO Andrew Kang as the principal accounting officer, effective June 30.