Strategy Reports $8.32B Bitcoin Loss, Sells Holdings to Fund Dividends

Strategy (MSTR) reported a loss of $8.32 billion on its digital asset holdings for the second quarter of 2026, a figure driven almost entirely by the declining market value of its bitcoin reserves. The company also disclosed recent sales of the cryptocurrency to fund corporate obligations, according to an unaudited regulatory filing prepared by management.

Quarterly Loss and Asset Sales

The loss for the three months ending June 30, 2026, consisted of $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.

In a move to generate cash, the company executed two sets of sales:

• June 29-30, 2026: Sold 1,363 bitcoin for aggregate proceeds of $80.8 million, at an average price of $59,256 per coin.
• July 1-5, 2026: Sold an additional 2,225 bitcoin for $135.2 million, at an average price of $60,773 per coin.

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Proceeds from the sales were used to fund preferred stock distributions and to replenish the company's U.S. dollar reserve. Following these transactions, Strategy's total holdings stood at 843,775 bitcoin as of July 5, 2026.

Financial and Corporate Context

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

The sales were conducted shortly after the company announced a BTC Monetization Program on June 29, which allows for bitcoin sales to generate up to $1.25 billion. The company also appointed Andrew Kang as its new principal accounting officer, effective June 30, following the retirement of Jeanine Montgomery. The financial information has not been audited or reviewed by its independent auditor, KPMG LLP.