Nikolas Sargeant
TL;DR
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Strategy reported an $8.2 billion net loss in Q2 2026, reversing a $10 billion profit recorded a year earlier.
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The loss was largely driven by unrealized declines in the value of its Bitcoin holdings as BTC ended the quarter more than 40% below its Q2 2025 level.
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The company has paused Bitcoin purchases for five consecutive weeks while expanding its U.S. dollar reserve to support preferred dividend payments.
Strategy reported a $8.2 billion net loss for the second quarter of 2026, reversing the $10 billion profit it posted during the same period last year as falling Bitcoin prices significantly reduced the value of its digital asset holdings.
The company said Thursday that the loss was driven almost entirely by unrealized paper losses on its Bitcoin portfolio rather than operational performance.
Bitcoin Decline Impacts Quarterly Results
During the quarter, Strategy increased its Bitcoin holdings by 11%, reaching a peak of 846,000 BTC before later selling a portion of its holdings.
According to the company, Bitcoin's price at the end of the second quarter was more than 40% lower than at the close of the same period in 2025, resulting in a substantial decline in the reported value of its cryptocurrency assets.
An SEC filing shows Strategy currently holds 843,775 BTC, making it the world's largest corporate Bitcoin holder.
The earnings report comes as Strategy adjusts its treasury strategy by prioritizing liquidity over additional Bitcoin purchases.
The company has paused Bitcoin acquisitions for five consecutive weeks while expanding its U.S. dollar reserve after its STRC preferred stock traded below its intended $100 price target.
So far in 2026, Strategy has sold approximately $218 million worth of Bitcoin to help fund preferred stock dividend payments.
Earlier this week, the company also disclosed that it repurchased 288,930 STRC shares for $25 million under the share buyback program launched in June.
Strategy Strengthens Balance Sheet
Chief Executive Officer Phong Le said the company reduced its outstanding convertible debt by 18%, lowering the balance to $6.7 billion during the second quarter.
At the same time, Strategy increased its U.S. dollar reserve by 12% to $2.4 billion during the reporting period.
In late June, the company formally adopted its Digital Credit Capital Framework, which requires maintaining sufficient dollar reserves to cover approximately 12 months of preferred stock dividends and interest obligations, estimated at $1.76 billion when the framework was introduced.
The board also approved a Bitcoin Monetization Program, authorizing the sale of up to $1.25 billion in Bitcoin when doing so is considered more advantageous than issuing additional MSTR common shares. Proceeds may be used to replenish cash reserves or fund preferred dividend payments.
Le said Strategy intends to keep STRC trading within a $99 to $100 range and will continue repurchasing shares when prices fall below that level.
According to Chief Financial Officer Andrew Kang, the company's U.S. dollar reserve has now grown to approximately $3.75 billion, enough to cover preferred dividend payments and interest obligations for roughly two years.
Kang also noted that Strategy has maintained 18 consecutive months of preferred dividend payments, despite the recent decline in Bitcoin prices.
Strategy Shares Hold Steady After Earnings
Strategy shares gained roughly 5% during Thursday's regular trading session. Following the earnings release, the stock traded largely unchanged in after-hours trading at approximately $97.21, as investors weighed the impact of the company's sizable unrealized Bitcoin losses against its strengthened liquidity position and more conservative capital management strategy.
