Strategy reported an $8.22 billion second quarter net loss on Thursday, as a slump in Bitcoin (BTC) prices marked down its 843,775 coin treasury.
Key Points:
- Strategy posted an $8.22 billion net loss for the second quarter, driven almost entirely by an $8.32 billion unrealized markdown on its Bitcoin holdings.
- Software revenue rose 6.9% to $122.4 million, while the company's 843,775 Bitcoin carried a market value of $54.77 billion against a $63.69 billion cost basis.
- Executives raised the STRC preferred dividend rate to 12% and said a $3.75 billion dollar reserve covers more than two years of obligations.
Strategy Bitcoin Loss Drives Quarterly Miss
The company reported an operating loss of $8.33 billion for the three months ended June 30, against operating income of $14.03 billion a year earlier. Almost all of that came from an $8.32 billion unrealized markdown on digital assets under fair value accounting rules, a charge that moved no cash. Total revenue reached $122.4 million, a 6.9% increase from $114.5 million, and came in just under what analysts had modeled.
Strategy held 843,775 Bitcoin as of Jul. 26, bought at an average price of $75,476 each, making it the largest institutional holder. The stack carried a market value of $54.77 billion against a cost basis of $63.69 billion, which left the position roughly $8.9 billion underwater at a Bitcoin price near $64,915.
The diluted loss of $24.45 per share missed the $2.19 loss analysts had penciled in.
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Saylor Defends Digital Credit Push
Michael Saylor, founder and executive chairman, said the firm keeps building Digital Credit into a new asset class despite what he called muted sentiment and market skepticism. Chief Executive Phong Le said the goal is for the STRC preferred share to trade near its $100 stated amount, while Chief Financial Officer Andrew Kang pointed to 18 straight months of dividend payments.
Analysts remain split on whether the model holds up through a long drawdown. JPMorgan managing director Nikolaos Panigirtzoglou has warned that the board's authorization to sell Bitcoin creates two-way risk for the wider market, since the firm drew roughly 70% of net digital asset inflows this year. Shares closed at $97.74 on Thursday, up 4.41% on the day, and remain down more than a third for the year.
Bitcoin Drawdown Reshapes Strategy Balance Sheet
Strategy raised $17.06 billion through at-the-market share programs this year, bought back $1.5 billion of convertible notes for about $1.38 billion, and cut outstanding convertible principal to $6.71 billion.
The company also lifted its dollar reserve to $3.75 billion, sold about $218.4 million of Bitcoin to help cover preferred dividends, and raised the STRC dividend rate to 12%.
The quarter extends a punishing stretch. Strategy lost $12.8 billion in the first three months of 2026 as the same accounting rules cut the other way. In June its board ended a four-year refusal to sell Bitcoin, which has dropped close to half from its October 2025 peak near $126,000 and now trades below the company's average cost.
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