Strategy reported an $8.22B Q2 net loss tied to unrealized losses on its 843,775 BTC holdings, while building a $3.75B cash reserve to cover preferred dividends.
Bitcoin News
Strategy reported a net loss of $8.22 billion for the second quarter of 2026, driven by an $8.32 billion unrealized loss on its Bitcoin (BTC) holdings as the cryptocurrency's price declined during the period. Bitcoin fell roughly 14% over the quarter, from around $68,000 at the start of April to approximately $58,600 by the end of June.
The loss reflects an accounting requirement under Financial Accounting Standards Board rules that obliges companies to mark cryptocurrency holdings to market each period and record unrealized gains or losses on the income statement, regardless of whether any assets were sold.
Holdings Rose 25% Despite the Price Drop
Strategy held 843,775 BTC at the end of the second quarter, a 25% increase from its position at the start of the year. The company continued adding to its holdings through the quarter even as prices fell.
To help fund a portion of its preferred stock dividend obligations, Strategy sold approximately $218.4 million worth of Bitcoin under a newly established BTC monetization program. Around $216 million of those sales occurred in early July, after the second quarter had already closed.
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The company said it has built a $3.75 billion US dollar cash reserve, which it described as sufficient to cover more than two years of preferred dividend payments and interest obligations. Strategy also recently repurchased $25 million of its STRC preferred shares at a discount to par value and said it intends to continue buying those securities while they trade below $100.
Stock Gains on the Day Before Slipping After Hours
Strategy shares, traded under the ticker MSTR, closed the regular trading session on July 30 up 4.7%, according to Yahoo Finance data. The stock slipped modestly in after-hours trading following the release of the earnings figures.
Bitcoin was trading at around $64,700 on July 30, above the levels seen at the end of the second quarter. Whether the recovery in price is sustained will have a direct bearing on how Strategy's holdings are marked in the third quarter.
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