Crypto30 July, 20262 min read
Strategy Reports $8.2 Billion Q2 Net Loss as Bitcoin Holdings Face $8.32 Billion Markdown
“almost entirely an accounting entry, not a cash outflow”
“driven almost entirely by an $8.32 billion unrealized markdown”
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Q2 net loss about $8.22 billion driven by $8.32 billion unrealized BTC loss. BTC holdings total 843,775 as of July 26, 2026.
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Strategy’s Q2 loss
Strategy reported an $8.2 billion second-quarter net loss driven almost entirely by an $8.32 billion unrealized markdown on its bitcoin holdings under fair-value accounting. The company said it holds 843,775 bitcoin as of July 26, worth about $54.8 billion at current prices versus a $63.7 billion acquisition cost. CoinDesk also reported that Strategy raised $17.06 billion this year through stock offerings while repurchasing $1.5 billion of convertible notes at a discount.
Strategy said it built a $3.75 billion U.S. dollar reserve, enough to cover more than two years of preferred dividends and interest, and it sold about $218.4 million worth of bitcoin under its new BTC Monetization Program. Executive Chairman Michael Saylor said the company remains focused on expanding what it calls its "Digital Credit" business despite weaker bitcoin prices.
Cash reserve and debt
Cointelegraph said Strategy built a $3.75 billion cash reserve to support preferred stock payouts following the launch of its BTC monetization program. It also said 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. Finanzen.net reported that Strategy sold approximately $218.4 million worth of Bitcoin under its newly established BTC monetization program to help fund a portion of its preferred stock dividend obligations.
Finanzen.net added that most of those sales ($216 million) occurred in early July after the second quarter ended, while Strategy also disclosed it had built a $3.75 billion U.S. dollar reserve. CoinDesk reported that Strategy repurchased $1.5 billion of convertible notes at an 8% discount and expanded its U.S. dollar reserve to $3.75 billion, enough to cover more than two years of preferred dividend payments and interest expenses.
What investors watch next
CoinDesk said the quarterly loss came as investor scrutiny grew over whether Strategy can sustain an increasingly complex capital structure built around multiple classes of preferred stock, common equity and convertible debt. It quoted Chief Financial Officer Andrew Kang saying, "Our USD Reserve currently stands at $3.75 billion, which is enough to cover our existing preferred dividend payments and interest obligations for more than 2.1 years," as Strategy described its coverage. Boursorama reported that Strategy posted a net loss of $8.22 billion, or $24.45 per share, for the quarter ended June 30, compared with net income of $10.02 billion, or $32.60 per share, a year earlier.
Boursorama also said Strategy held 843,775 bitcoins as of July 26 and quoted CEO Phong Le saying, "In Q2 2026, Strategy strengthened its balance sheet while facing a meaningful decline in the price of bitcoin," as bitcoin prices collapsed. CoinDesk reported that Strategy established a $1 billion share repurchase program for its MSTR common stock, while it separately repurchased about $25 million of its STRC preferred shares at a discount to their stated value.