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

Strategy (MSTR) disclosed 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 confirmed it sold a portion of its bitcoin reserves to fund preferred stock distributions and replenish its cash position.

Quarter-End Financials

The loss for the three months ended June 30 was comprised almost entirely of $8.31 billion in unrealized losses on the company's vast bitcoin holdings, with an additional $0.9 million in realized losses. The filing provided the following key figures as of the quarter's end:

• Bitcoin Holdings: 846,000 BTC
• Carrying Value: $49.67 billion
• Aggregate Purchase Price: $63.94 billion
• Average Purchase Price: $75,578 per bitcoin

Strategy noted that because the cost basis of its bitcoin exceeded its fair market value, it was required to record a valuation allowance against its deferred tax asset. The company also stated the financial information was prepared by management and has not been audited or reviewed by its independent auditor, KPMG LLP.

Bitcoin Sales and Corporate Strategy

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To raise cash, Strategy sold bitcoin in two tranches. Between June 29 and June 30, it sold 1,363 bitcoin for $80.8 million at an average price of $59,256. It then sold an additional 2,225 bitcoin between July 1 and July 5 for $135.2 million, at an average price of $60,773.

These sales reduced the company's total holdings to 843,775 bitcoin as of July 5. The proceeds were used to fund preferred stock distributions and replenish its U.S. dollar reserve, which stood at $2.55 billion. The company has a separate BTC Monetization Program that could generate up to $1.25 billion, which remained unused.

Context and Management Changes

The sales, while representing a small fraction of its total holdings, mark a tactical shift for a company known for its aggressive bitcoin accumulation strategy. For investors, it demonstrates a willingness to liquidate assets to meet corporate obligations, a key consideration for a company with such a concentrated balance sheet.

In a separate corporate development, Strategy designated its Executive Vice President and CFO, Andrew Kang, as principal accounting officer, effective June 30. He replaces the retiring Jeanine Montgomery.