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

Strategy (MSTR) reported a loss of $8.32 billion on its digital asset holdings for the three months ending June 30, 2026, according to a recent regulatory filing. The figure consists almost entirely of $8.31 billion in unrealized losses, reflecting the decline in Bitcoin's market value, along with $0.9 million in realized losses.

Bitcoin Sales and Balance Sheet

To meet corporate obligations, the company has begun selling portions of its vast Bitcoin reserves. The proceeds were used to fund preferred stock distributions and replenish its U.S. dollar reserve.

• Between June 29 and June 30, Strategy sold 1,363 bitcoin for approximately $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, at an average price of $60,773.

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

State of Holdings

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As of the quarter's end on June 30, Strategy held 846,000 bitcoin. The filing noted the carrying value of these assets was $49.67 billion, significantly below the aggregate purchase price of $63.94 billion. This reflects an average purchase price of $75,578 per bitcoin.

Because the cost basis of its Bitcoin exceeded its fair market value, the company was required to record a valuation allowance against its deferred tax asset associated with the unrealized losses. The financial information was prepared by management and has not been audited or reviewed by its accounting firm, KPMG LLP.

Corporate Developments

On June 29, Strategy announced a BTC Monetization Program, authorizing it to generate up to $1.25 billion in additional proceeds through bitcoin sales, though this capacity remained unused as of July 5. The company also appointed its Executive Vice President and CFO, Andrew Kang, as its principal accounting officer, effective June 30.