Strategy posts $8.2B Q2 loss as Bitcoin slump drives unrealized losses

cointelegraphPublished on 2026-07-30Last updated on 2026-07-30

Abstract

Strategy reported an $8.22 billion net loss for Q2, primarily driven by an $8.32 billion unrealized loss on its Bitcoin holdings due to a price decline. The company held 843,775 BTC as of July 26, a 25% increase since the start of the year. Despite this, it sold approximately $218.4 million worth of Bitcoin under a new monetization program to help fund preferred stock dividends. Strategy has also built a $3.75 billion cash reserve to cover over two years of dividend and interest obligations. It recently repurchased $25 million of its preferred shares at a discount and intends to continue buybacks while they trade below $100. Bitcoin fell about 14% in Q2, from around $68,000 to $58,600, but was trading near $64,700 on Thursday. Strategy's stock (MSTR) closed regular trading up 4.7% before dipping slightly after-hours following the earnings release.

Strategy reported an $8.22 billion second-quarter net loss, driven primarily by an $8.32 billion unrealized loss on its Bitcoin holdings as the cryptocurrency’s price declined during the quarter.

As of July 26, Strategy held 843,775 Bitcoin (BTC), a 25% increase since the beginning of the year despite selling approximately $218.4 million worth of Bitcoin under its newly established BTC monetization program. The company said the proceeds were used to help fund a portion of its preferred stock dividend obligations.

Strategy also said it has built a $3.75 billion US dollar reserve, enough to cover more than two years of preferred dividend payments and interest obligations. The company recently repurchased $25 million of its STRC preferred shares at a discount to par and said it intends to continue buying the securities while they trade below $100.

Bitcoin fell about 14% during the second quarter, from around $68,000 at the start of April to about $58,600 by the end of June, according to CoinGeck data. On Thursday afternoon, it was trading around $64,700.

Strategy (MSTR) shares finished the regular trading session on Thursday up 4.7% before slipping modestly in after-hours trading following the earnings report, per Yahoo Finance data.

Related Questions

QWhat was the primary driver behind Strategy's $8.22 billion net loss in Q2?

AThe $8.22 billion net loss was driven primarily by an $8.32 billion unrealized loss on its Bitcoin holdings due to a decline in the cryptocurrency's price during the quarter.

QHow many Bitcoin did Strategy hold as of July 26, and how does this compare to the start of the year?

AAs of July 26, Strategy held 843,775 Bitcoin, which represents a 25% increase since the beginning of the year.

QWhat was the purpose of the proceeds from Strategy's newly established BTC monetization program?

AThe proceeds from selling approximately $218.4 million worth of Bitcoin under the new BTC monetization program were used to help fund a portion of the company's preferred stock dividend obligations.

QWhat is the size of Strategy's US dollar reserve, and what purpose does it serve?

AStrategy has built a $3.75 billion US dollar reserve, which is enough to cover more than two years of preferred dividend payments and interest obligations.

QHow did Strategy's (MSTR) stock price perform on Thursday following the earnings report?

AStrategy's (MSTR) shares finished the regular trading session on Thursday up 4.7%, but slipped modestly in after-hours trading following the earnings report.

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