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

Strategy (MSTR) reported an $8.32 billion loss on its digital asset holdings for the second quarter of 2026, according to a recent regulatory filing. The company also disclosed it has been selling portions of its vast bitcoin reserve to fund preferred stock distributions and replenish its U.S. dollar holdings.

Q2 Financials Reveal Major Bitcoin Loss

For the three months ended June 30, 2026, the company's loss on digital assets consisted of $8.31 billion in unrealized losses and $0.9 million in realized losses. The filing, which was prepared by management and has not been audited by KPMG LLP, noted this required a valuation allowance against its deferred tax asset.

As of June 30, Strategy held 846,000 bitcoin. The carrying value of these assets was listed at $49.67 billion, significantly below the aggregate purchase price of $63.94 billion. This reflects an average purchase price of $75,578 per bitcoin for the company's entire stack.

Bitcoin Sales Fund Operations

Strategy has begun to liquidate small portions of its holdings to meet financial obligations. The company sold a combined 3,588 bitcoin between June 29 and July 5, 2026, generating total proceeds of $216 million.

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

The proceeds were used for preferred stock distributions and to bolster its cash reserve, which stood at $2.55 billion as of July 5. Following the sales, Strategy's total holdings were reduced to 843,775 bitcoin.

Corporate and Program Updates

These sales fall under a new BTC Monetization Program announced on June 29, which allows the company to generate up to $1.25 billion in proceeds. The company also appointed its CFO, Andrew Kang, as principal accounting officer, effective June 30. The filing noted that no company shares were sold or repurchased between June 29 and July 5.