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

Strategy (MSTR) recorded an $8.32 billion loss on its digital assets for the three months ended June 30, 2026, according to a recent regulatory filing. The figure was composed almost entirely of $8.31 billion in unrealized losses, with an additional $0.9 million in realized losses.

Quarterly Holdings and Recent Sales

The company disclosed that as of June 30, it held 846,000 bitcoin. These holdings had 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.

Strategy also revealed recent sales of its bitcoin holdings to raise cash. The proceeds were designated to fund preferred stock distributions and replenish its U.S. dollar reserve. The sales occurred in two tranches:

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

Following these transactions, Strategy's total bitcoin holdings were reduced to 843,775 BTC as of July 5, 2026.

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Financial Position and Disclosures

The filing noted that because the cost basis of its bitcoin exceeded the fair market value on June 30, the company was required to record a valuation allowance against its deferred tax asset associated with the unrealized losses. As of July 5, Strategy's U.S. dollar reserve stood at $2.55 billion.

Strategy also highlighted its recently announced BTC Monetization Program, which allows for sales to generate up to $1.25 billion in additional proceeds. The company stated that the full capacity of this program remained unused as of July 5. The financial information was prepared by management and has not yet been audited or reviewed by its independent auditor, KPMG LLP.

Corporate Updates

In other developments, the company designated Executive Vice President and CFO Andrew Kang as its principal accounting officer, effective June 30, following the retirement of Jeanine Montgomery. Strategy also confirmed it did not sell any shares under its at-the-market offering or repurchase any shares under its buyback programs between June 29 and July 5, 2026.