Strategy Reports $8.32B Q2 Loss on Bitcoin, Sells Holdings to Fund Dividends

Strategy (MSTR) disclosed an $8.32 billion loss on its digital asset holdings for the second quarter of 2026 and has sold a portion of its bitcoin reserves to fund dividends and replenish cash, according to a recent regulatory filing.

Second Quarter Financial Impact

The company recorded the significant loss for the three months ending June 30, 2026, which comprised $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 against an aggregate purchase price of $63.94 billion.

This discrepancy reflects an average purchase price of $75,578 per bitcoin. The filing noted that because the cost basis of its bitcoin exceeded its fair value, the company was required to establish a valuation allowance against its deferred tax asset associated with the unrealized losses.

Bitcoin Sales Detailed

In a notable shift from its accumulation strategy, the company sold bitcoin in two separate tranches to generate cash. The proceeds were used to fund preferred stock distributions and increase its USD reserve.

Ad

• 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, 2026. The company's USD reserve stood at $2.55 billion on the same date.

Context and Corporate Updates

The sale of assets to cover corporate obligations marks a tactical evolution for Strategy, providing liquidity without issuing new debt or equity. The company also announced a BTC Monetization Program on June 29, which could generate up to $1.25 billion in proceeds, though this facility remained unused as of July 5.

The financial information disclosed in the filing was prepared by management and has not been audited or reviewed by the company's independent auditor, KPMG LLP. Separately, Strategy designated EVP and CFO Andrew Kang as its principal accounting officer, effective June 30, following the retirement of Jeanine Montgomery.