Strategy Reports $8.32 Billion Q2 Loss on Bitcoin Holdings, Sells BTC for Dividends

Strategy (MSTR) recorded a loss of $8.32 billion on its digital asset holdings for the three months ended June 30, 2026, according to a recent regulatory filing. The business intelligence firm, known for its substantial bitcoin treasury, also revealed it has been selling portions of its holdings to fund corporate obligations.

Second-Quarter Financials

The company's filing detailed the significant paper loss on its bitcoin portfolio, which comprised $8.31 billion in unrealized losses and $0.9 million in realized losses for the quarter. As of June 30, 2026, Strategy 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. The firm noted that because the fair value of its bitcoin was below its cost basis, it was required to record a valuation allowance against its deferred tax asset associated with the unrealized losses. The financial information was prepared by management and has not been audited by its public accounting firm, KPMG LLP.

Bitcoin Sales and Corporate Strategy

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Strategy has begun to liquidate some of its bitcoin to meet financial needs. The 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, 2026.

Recent sales activity includes:

• June 29-30, 2026: Sold 1,363 bitcoin for $80.8 million at an average price of $59,256.
• July 1-5, 2026: Sold an additional 2,225 bitcoin for $135.2 million at an average price of $60,773.

Following these sales, the company's total holdings were reduced to 843,775 bitcoin as of July 5. The sales were conducted under a new BTC Monetization Program, announced on June 29, which allows for sales to generate up to $1.25 billion in proceeds. The filing also noted a change in leadership, with Executive Vice President and CFO Andrew Kang taking on the role of principal accounting officer, effective June 30, 2026.