Strategy Reports $8.32 Billion Loss on Bitcoin, Sells Holdings to Fund Dividends

Strategy (MSTR) reported a staggering $8.32 billion loss on its digital asset holdings for the second quarter of 2026 and confirmed it recently sold a portion of its bitcoin to fund dividend payments, according to a new regulatory filing.

Quarterly Loss and Recent Sales

The loss for the three months ended June 30, 2026, was composed almost entirely of $8.31 billion in unrealized losses on its bitcoin portfolio, with an additional $0.9 million in realized losses. The filing also disclosed two recent tranches of sales to raise cash.

• Between June 29 and June 30, Strategy sold 1,363 bitcoin for $80.8 million, at an average price of $59,256.
• Between July 1 and July 5, it sold an additional 2,225 bitcoin for $135.2 million, at an average price of $60,773.

Strategy stated that the proceeds were used to fund preferred stock distributions and to replenish its U.S. dollar reserve.

Impact on Holdings and Balance Sheet

As of June 30, 2026, Strategy held 846,000 bitcoin. The filing noted the carrying value of these assets was $49.67 billion against an aggregate purchase price of $63.94 billion, reflecting a significantly higher average purchase price of $75,578 per bitcoin.

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The filing states that because the cost basis of its bitcoin exceeded its fair market value at the end of the quarter, the company was required to record a valuation allowance against its deferred tax asset. It also noted the preliminary financial information was prepared by management and has not been audited or reviewed by its independent auditor, KPMG LLP.

Following the recent sales, Strategy's total holdings stood at 843,775 bitcoin as of July 5, with its USD reserve at $2.55 billion.

Corporate Developments

The sales were conducted under a recently announced BTC Monetization Program, which allows the company to generate up to $1.25 billion in proceeds from bitcoin sales. Strategy also confirmed it did not sell any shares under its at-the-market offering or conduct any share repurchases between June 29 and July 5, 2026.

In a separate corporate update, the company designated Andrew Kang, its Executive Vice President and Chief Financial Officer, as principal accounting officer effective June 30, 2026.