Strategy Inc. Posts Q2 Loss on $8.3 Billion Bitcoin Writedown; Revenue Meets Estimates

Strategy Inc. (NASDAQ:MSTR) reported a substantial net loss for the second quarter, driven by an $8.32 billion unrealized loss on its extensive bitcoin holdings that overshadowed revenue growth that met analyst expectations. The company's shares edged down 0.76% in after-hours trading following the July 30 announcement.

Q2 by the Numbers

The enterprise software company posted a net loss of $24.45 per share for the quarter ended June 30. This marks a sharp reversal from the same period last year when it reported earnings of $32.60 per share, a time when it recognized a significant unrealized gain on its digital assets.

The quarterly operating loss of $8.33 billion was almost entirely composed of the impairment charge on its bitcoin. In contrast, the company had recorded an unrealized gain of $14.05 billion in the second quarter of 2025. On a more positive note, total revenue grew 6.9% year-over-year to $122.4 million, matching analyst forecasts, according to Investing.com.

Bitcoin Strategy and Balance Sheet Moves

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Despite the paper loss, Strategy Inc. continued to execute its core strategy of acquiring and holding bitcoin. The company's holdings grew by 11% during the quarter to a total of 846,000 bitcoins, which held a market value of $54.77 billion as of July 27.

"In the second quarter of 2026, Strategy strengthened its balance sheet while navigating a meaningful bitcoin price decline," said Phong Le, President and Chief Executive Officer, in a statement. Le highlighted that the company reduced its convertible debt by 18% to $6.7 billion and increased its USD Reserve by 12% to $2.4 billion.

To fund its operations and acquisitions, the company raised $8.41 billion in gross proceeds through at-the-market offerings of its common and preferred stock. It also repurchased $1.50 billion of its convertible notes due 2029 at an 8% discount to their par value, actively managing its debt profile.