TLDR
- Strategy posted an $8.33B operating loss after Bitcoin’s decline hit its holdings hard in Q2.
- Bitcoin traded near $64,700, below Strategy’s average purchase price of $75,476 per coin after earnings.
- Strategy held 843775 Bitcoin on July 26, up 25% from the start of 2026 today.
- The company recorded an $8.32B unrealized digital asset loss during the second quarter period alone.
- Strategy’s dollar reserve reached $3.75B, covering more than two years of dividends and interest obligations.
Strategy reported an $8.33 billion operating loss for the second quarter after Bitcoin’s year-to-date decline created a large unrealized loss on its digital asset holdings.
Bitcoin Decline Drives Quarterly Loss
Strategy recorded an $8.32 billion unrealized loss on its Bitcoin holdings during the quarter. The loss reversed sharply from a $14.05 billion unrealized gain reported in the same period last year.
Bitcoin traded near $64,700 after the earnings announcement. That level remained far below its price of about $88,400 at the end of 2025, reflecting a decline of roughly 27% this year.
The company posted a net loss of $8.22 billion, or $24.45 per diluted common share. In the prior-year quarter, Strategy reported net income of $10.02 billion, or $32.60 per share.
Strategy shares were mostly flat in after-hours trading after the results. The stock reaction showed limited immediate selling pressure, even as the quarterly loss reflected Bitcoin’s weaker market value.
Strategy Holds 843,775 Bitcoin
Strategy held 843,775 Bitcoin as of July 26. The total represented a 25% increase in the company’s Bitcoin holdings since the start of the year.
The Bitcoin had an original cost of $63.69 billion. Its market value stood at $54.77 billion at quarter-end, leaving the holdings below their total acquisition cost.
Strategy’s average purchase price was about $75,476 per Bitcoin. That figure remained above Bitcoin’s post-earnings level, keeping the company’s crypto treasury under pressure.
The company reported quarterly revenue of $122.4 million, up 6.9% from $114.5 million a year earlier. Gross profit reached $81.6 million, giving Strategy a gross margin of 66.6%.
The operating business remained much smaller than the company’s Bitcoin exposure. As a result, changes in Bitcoin’s price continued to drive Strategy’s reported earnings swings.
Capital Raises and Cash Reserve Support Balance Sheet
Strategy raised $17.06 billion through capital markets programs during the year. The company also reported a Bitcoin yield of 4.5% for the period.
The firm reduced convertible debt by 18% to $6.71 billion. That reduction followed the repurchase of $1.5 billion of notes at a discount.
Strategy’s dollar reserve reached $3.75 billion. The reserve provides more than two years of coverage for preferred stock dividends and interest obligations.
The company has sold about $218.4 million of Bitcoin this year to help fund preferred dividends. Those sales came as Strategy continued managing liquidity needs tied to its capital structure.
Strategy also created separate $1 billion repurchase programs for common stock and digital credit securities. The programs give the company flexibility to manage shares and credit instruments when market conditions permit.
The latest quarter shows how closely Strategy’s earnings remain tied to Bitcoin price movements. The company increased its Bitcoin holdings this year, while lower market prices created a large accounting loss.
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