Overview
- The company reported a $8.22 billion net loss for Q2 driven by an $8.32 billion unrealized markdown on its Bitcoin holdings under fair‑value accounting, a change that reflects price moves rather than cash losses.
- Strategy holds 843,775 BTC after net purchases in 2026, leaving the portfolio several billion dollars below its average cost and exposing GAAP results to large swings from Bitcoin price changes.
- In response to the drawdown, the firm paused buys for five weeks, rebuilt its U.S. dollar reserve to about $3.75 billion, and sold roughly $218 million of Bitcoin year‑to‑date to help fund preferred dividends.
- The company has reduced convertible debt to about $6.71 billion by repurchasing notes at a discount and began repurchasing STRC preferred shares, spending $25 million to buy 288,930 shares with about $975 million still authorized.
- Because Strategy owns roughly 4% of total Bitcoin supply, its decision to monetize, issue or repurchase securities can influence market prices and the company is targeting early September as a test of whether STRC can return toward par.