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

Strategy (MSTR) reported a loss of $8.32 billion on its digital asset holdings for the second quarter ended June 30, 2026, according to a preliminary financial update filed with regulators. The figure primarily consists of $8.31 billion in unrealized, or paper, losses, with an additional $0.9 million in realized losses booked during the period.

Bitcoin Sales and Holdings

The company disclosed it has begun selling portions of its vast bitcoin reserve to meet financial obligations. These sales were conducted to fund preferred stock distributions and to increase its U.S. dollar reserves.

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

Following these transactions, Strategy's total holdings stood at 843,775 bitcoin as of July 5. The filing noted that as of June 30, the company held 846,000 bitcoin with a carrying value of $49.67 billion, against an aggregate purchase price of $63.94 billion, reflecting an average cost of $75,578 per bitcoin.

Financial Position and Strategy

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Strategy's U.S. dollar reserve was $2.55 billion as of July 5. The company recently established a BTC Monetization Program, announced on June 29, which authorizes it to sell bitcoin to generate up to $1.25 billion in additional cash. The full capacity of this program remains unused.

Due to the decline in bitcoin's market price below the company's cost basis, Strategy stated it was required to record a valuation allowance against its deferred tax assets. This accounting measure reflects uncertainty about the future usability of tax benefits associated with its unrealized losses. The company emphasized that the financial information was prepared by management and has not been audited or reviewed by its independent auditor, KPMG LLP.

Management Update

In the same filing, Strategy announced a change in its finance leadership. Effective June 30, 2026, Executive Vice President and CFO Andrew Kang has also been designated as the company's principal accounting officer. He assumes the role from Jeanine Montgomery, who retired from her position as Vice President and Chief Accounting Officer.