Strategy Reports $8.32B Q2 Loss on Bitcoin Holdings, Sells BTC for Dividends

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

Q2 Holdings and Valuation

The company's filing, which it noted has not been audited or reviewed by its accounting firm KPMG LLP, provides a snapshot of its bitcoin position at the end of the second quarter. Key figures as of June 30, 2026, include:

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

The significant gap between the purchase price and the carrying value led to the large reported loss for the period. Strategy noted that because the cost basis of its bitcoin exceeded its fair value, it was required to record a valuation allowance against its deferred tax asset associated with the unrealized losses.

Bitcoin Sales and Cash Reserves

Strategy also disclosed recent sales of its bitcoin to generate cash. The proceeds were used to fund preferred stock distributions and replenish its U.S. dollar reserve. The company sold a total of 3,588 bitcoin between late June and early July.

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

Following these transactions, the company's holdings were reduced to 843,775 bitcoin as of July 5, 2026. Its U.S. dollar reserve stood at $2.55 billion on the same date.

Corporate and Program Updates

On June 29, Strategy announced a BTC Monetization Program, authorizing it to sell bitcoin 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. The company also confirmed it did not sell any shares under its at-the-market offering or conduct any share repurchases between June 29 and July 5.

In a management change, the company designated Executive Vice President and CFO Andrew Kang as its principal accounting officer, effective June 30, following the retirement of Vice President and Chief Accounting Officer Jeanine Montgomery.