Strategy Reports $8.32 Billion Q2 Loss on Bitcoin, Sells Holdings for 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 disclosed it has recently sold bitcoin to fund preferred stock distributions and replenish its U.S. dollar reserves.

Q2 Losses and Recent Sales

The loss for the three months ending June 30, 2026, comprised $8.31 billion in unrealized losses and $0.9 million in realized losses. As of that date, Strategy held 846,000 bitcoin with a carrying value of $49.67 billion, significantly below its aggregate purchase price of $63.94 billion.

The company detailed two recent sales transactions in the filing:

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

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These sales were executed to cover preferred stock distributions and bolster the company's cash position. The transactions reduced Strategy's total holdings to 843,775 bitcoin as of July 5, 2026.

Financial Position and Outlook

Following the sales, Strategy's U.S. dollar reserve stood at $2.55 billion as of July 5. The company noted in its filing that because the cost basis of its bitcoin exceeded its fair value at the end of the quarter, it was required to record a valuation allowance against its deferred tax asset tied to the unrealized losses.

Investors should note that the financial information was prepared by management and has not been audited or reviewed by the company's independent auditor, KPMG LLP. On June 29, Strategy also announced a BTC Monetization Program allowing for up to $1.25 billion in bitcoin sales to generate additional proceeds, though this facility remained unused as of July 5.