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

Strategy (MSTR) recorded a substantial $8.32 billion loss on its digital assets for the three months ended June 30, 2026, according to a preliminary financial update disclosed in a regulatory filing. The figure comprises $8.31 billion in unrealized losses and $0.9 million in realized losses from its vast cryptocurrency holdings.

Financial Disclosures

As of June 30, Strategy held 846,000 bitcoin. The company reported the carrying value of these assets at $49.67 billion, significantly below the aggregate purchase price of $63.94 billion. This reflects an average purchase price of $75,578 per bitcoin.

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

Recent Bitcoin Sales

To raise capital, Strategy sold a portion of its bitcoin reserves. The filing details two recent tranches of sales:

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• Between June 29 and June 30, the company sold 1,363 bitcoin for aggregate proceeds of $80.8 million, at an average price of $59,256 per coin.
• Between July 1 and July 5, it sold an additional 2,225 bitcoin for $135.2 million, achieving an average price of $60,773.

The company stated the proceeds were used to fund preferred stock distributions and to replenish its U.S. dollar reserve. Following these sales, Strategy's total holdings were reduced to 843,775 bitcoin as of July 5, with its USD reserve standing at $2.55 billion.

Corporate Context

These sales were executed shortly after the company announced a BTC Monetization Program on June 29, which authorizes bitcoin sales to generate up to $1.25 billion in additional proceeds for its reserve. As of July 5, the full capacity of this program remained unused.

During the same period, Strategy did not sell any shares under its at-the-market offering or repurchase any shares. The company also announced that Executive Vice President and CFO Andrew Kang was designated as principal accounting officer, effective June 30, following the retirement of Jeanine Montgomery.