Strategy books $8.2 billion Q2 loss on bitcoin price decline

Strategy (MSTR), which is the largest corporate holder of bitcoin, reported a net loss of $8.2 billion for the second quarter of 2026. This loss was driven almost entirely by an $8.32 billion unrealized markdown on its bitcoin holdings caused by a decline in the cryptocurrency’s price. As of July 26, 2026, the company held 843,775 bitcoins valued at about $54.8 billion at current prices, which is down from an acquisition cost of $63.7 billion.

During 2026, Strategy raised $17.06 billion through at-the-market stock offerings and repurchased $1.5 billion of convertible notes at an 8% discount. It also expanded its U.S. dollar reserve to $3.75 billion, which Chief Financial Officer Andrew Kang said is sufficient to cover more than two years of preferred dividend payments and interest expenses. Additionally, Strategy began selling some bitcoin under a new BTC Monetization Program, generating approximately $218.4 million in sales to support cash flow and fund dividends, marking a departure from its previous strategy of solely accumulating bitcoin.

Executive Chairman Michael Saylor stated that despite the weak bitcoin market sentiment, the company is focused on expanding its “Digital Credit” business as a new asset class. The firm also initiated a $1 billion share repurchase program for its common stock, although it has not repurchased any common shares yet. It has, however, repurchased about $25 million of its preferred shares at a discount and plans to continue doing so while they trade below their stated value.

The report follows increased investor scrutiny over whether Strategy can sustain its complex capital structure, which includes multiple classes of preferred stock, common equity, and convertible debt. The company’s moves to build a sizable cash reserve, monetize some bitcoin holdings, and pursue new business lines such as Digital Credit are presented as efforts to manage financial risks amid challenging market conditions for bitcoin.