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

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

Quarterly Loss and Bitcoin Sales

For the three-month period ending June 30, 2026, the firm's digital asset loss was primarily composed of $8.31 billion in unrealized losses, with an additional $0.9 million in realized losses. The financial information was prepared by management and has not been audited or reviewed by an independent public accounting firm, the filing noted.

To raise capital, Strategy executed two sets of sales:

• June 29-30, 2026: Sold 1,363 bitcoin for aggregate proceeds of $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.

Impact on Holdings and Balance Sheet

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Following these sales, Strategy's total holdings stood at 843,775 bitcoin as of July 5, 2026. As of the quarter's end on 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 purchase price of $75,578 per bitcoin.

The filing stated that because the cost basis of its bitcoin exceeded fair value, Strategy was required to record a valuation allowance against its deferred tax asset associated with the unrealized losses. As of July 5, the company’s USD reserve stood at $2.55 billion.

Corporate Strategy and Management Update

The recent sales were conducted under a BTC Monetization Program announced on June 29, which authorizes the company to sell bitcoin to generate up to $1.25 billion in additional proceeds for its reserve. Strategy also confirmed it did not sell shares under its at-the-market offering or repurchase any shares between June 29 and July 5.

In a separate corporate development, the company designated Executive Vice President and CFO Andrew Kang as its principal accounting officer, effective June 30, following the retirement of Jeanine Montgomery.