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Strategy Reports $8.32 Billion Loss on Digital Assets, Sells Bitcoin to Fund Dividends
Summary
Strategy disclosed a significant $8.32 billion loss on its digital assets for the second quarter of 2026 in a recent regulatory filing. The company also sold a portion of its bitcoin holdings to fund preferred stock distributions and replenish its cash reserves.
In a regulatory filing, the company Strategy reported an $8.32 billion loss on its digital assets for the three months ending June 30, 2026. The total loss comprises $8.31 billion in unrealized losses and $0.9 million in realized losses. The financial information was prepared by management and has not been audited or reviewed by an independent accounting firm.
As of June 30, 2026, Strategy held 846,000 bitcoin with a carrying value of $49.67 billion, compared to an aggregate purchase price of $63.94 billion. This indicates an average purchase price of $75,578 per bitcoin. The company noted that since the cost basis of its bitcoin exceeded the fair value on that date, it required a valuation allowance against its deferred tax asset associated with the unrealized losses.
Strategy also disclosed recent sales of its bitcoin holdings. Between June 29 and June 30, the company sold 1,363 bitcoin for approximately $80.8 million. An additional 2,225 bitcoin were sold between July 1 and July 5 for $135.2 million. The proceeds were used to fund preferred stock distributions and replenish its U.S. dollar reserve.
AdFollowing these transactions, the company's total holdings were reduced to 843,775 bitcoin as of July 5, with its U.S. dollar reserve standing at $2.55 billion. The filing also mentioned the appointment of Andrew Kang, Executive Vice President and Chief Financial Officer, as the company's principal accounting officer, effective June 30, 2026.