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Strategy Pauses Bitcoin Purchases and Reports $8.2 Billion Q2 Loss

Building a $3.75 billion USD reserve, the company has used limited bitcoin sales and preferred repurchases to secure cash for dividend and interest obligations.

Overview

  • On Thursday, July 30, Strategy disclosed a $8.2 billion net loss for Q2 driven almost entirely by an $8.32 billion unrealized markdown on its 843,775 bitcoin holdings.
  • The firm has not bought bitcoin for five consecutive weeks, its longest pause in nearly two years, and has sold roughly $218.4 million of bitcoin under a new monetization program.
  • Strategy raised about $544.5 million in a recent common share sale and has taken in roughly $17.06 billion year-to-date through at‑the‑market issuances, actions that have increased its share count and diluted bitcoin-per-share metrics.
  • Management has increased a designated USD reserve to $3.75 billion and repurchased about $25 million of STRC preferred stock to cover more than two years of preferred dividend and interest obligations.
  • The company says it retains optionality to monetize up to board-approved limits, continue equity programs or buybacks, and expand a planned Digital Credit business, a shift that changes its role from pure accumulator to active balance-sheet manager.