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

Strategy (MSTR) reported a loss of $8.32 billion on its digital asset holdings for the three months ended June 30, 2026, according to a recent regulatory filing. The company also revealed it has recently sold bitcoin to fund preferred stock distributions and bolster its U.S. dollar reserves.

Financials Reveal Major Paper Loss

The vast majority of the quarterly loss, $8.31 billion, was classified as unrealized, reflecting the decline in bitcoin's market price against the company's purchase price. A smaller $0.9 million was recorded as a realized loss. The company stated that because the cost basis of its bitcoin exceeded fair value at the end of the quarter, it was required to book a valuation allowance against its deferred tax asset.

Strategy noted in the filing that the financial information was prepared by management and has not been audited or reviewed by its independent accounting firm, KPMG LLP.

Bitcoin Sales and Holdings Update

To generate liquidity, the company sold a total of 3,588 bitcoin between June 29 and July 5, 2026, for aggregate proceeds of approximately $216 million. The sales were executed in two tranches:

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• 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 sales, Strategy's total holdings were reduced to 843,775 bitcoin as of July 5, with its U.S. dollar reserve standing at $2.55 billion.

Corporate Strategy and Context

As of the June 30 quarter-end, Strategy held 846,000 bitcoin. The carrying value of these assets was listed at $49.67 billion, well below the aggregate purchase price of $63.94 billion. This reflects an average purchase price of $75,578 per bitcoin.

The company recently announced a BTC Monetization Program allowing for up to $1.25 billion in bitcoin sales, the full capacity of which remained unused as of July 5. The filing also noted that the company did not sell shares under its at-the-market offering or repurchase any shares during the period. Strategy also appointed Andrew Kang as its new principal accounting officer, effective June 30.