Strategy Reports $8.2 Billion Quarterly Loss as Bitcoin Price Drop Hits Balance Sheet

Strategy posted an $8.22 billion net loss for the second quarter, largely tied to an $8.32 billion unrealized loss on its Bitcoin holdings after the cryptocurrency’s price fell during the period.

Bitcoin Holdings Keep Growing Despite Losses

As of July 26, the company held 843,775 BTC, a 25% increase since the start of the year. Strategy also revealed it sold roughly $218.4 million in Bitcoin through its new BTC monetization program, set up to help cover preferred stock dividend payments. Most of that, about $216 million, was sold in early July, after the quarter had already closed.

Cash Reserve Built for Dividend Coverage

The company said it now holds a $3.75 billion cash reserve, enough to handle more than two years of preferred dividend and interest payments. It also bought back $25 million of its STRC preferred shares at a discount and plans to keep purchasing them if they stay priced below $100.

Bitcoin Price Movement and Stock Reaction

Bitcoin dropped about 14% over the quarter, sliding from near $68,000 in early April to roughly $58,600 by late June, before recovering to around $64,700 by Thursday afternoon. Strategy’s stock closed up 4.7% that day, though it eased slightly in after-hours trading once the earnings numbers came out.