Strategy Reports $8.2 Billion Q2 Loss Amid Bitcoin Decline, Holds 843,775 BTC as Largest Institutional Holder
The Tysons Corner-based Bitcoin treasury company navigated a meaningful price decline while growing holdings 11% and introducing new credit metrics.
Q2 Results Reflect Bitcoin Volatility
Strategy Inc reported a net loss of $8.22 billion, or $24.45 per diluted common share, for the second quarter of 2026, compared to net income of $10.02 billion in the year-ago period, according to the company's 8-K filing dated July 30, 2026. The operating loss of $8.33 billion included an unrealized loss on digital assets of $8.32 billion, reflecting what management characterized as "a meaningful bitcoin price decline" during the quarter (8-K filing, 2026-07-30).
The company's bitcoin holdings stood at 843,775 BTC as of July 26, 2026, with an original cost basis of $63.69 billion and market value of $54.77 billion, representing an average cost per bitcoin of approximately $75,476 against a market price of $64,915 (8-K filing, 2026-07-30). Strategy now describes itself as "the largest institutional holder of bitcoin" globally.
Capital Raising and Balance Sheet Management
Despite the market headwinds, Strategy raised $17.06 billion year-to-date through at-the-market equity programs, including $8.41 billion during the second quarter alone (8-K filing, 2026-07-30). The company also issued $7.53 billion in STRC preferred stock year-to-date, representing 254% growth.
In May 2026, Strategy repurchased $1.50 billion aggregate principal amount of its 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash, an 8% discount to par, reducing total convertible notes outstanding from $8.21 billion to $6.71 billion (8-K filing, 2026-07-30).
The company grew its "USD Reserve" to $3.75 billion, which it stated provides "more than 2.1 years of coverage" for preferred dividend payments and interest obligations (8-K filing, 2026-07-30). Strategy has paid $1.06 billion in cumulative dividends on preferred stock to date, maintaining an 18-month track record of consecutive payments.
New Metrics and Digital Credit Focus
"To give investors clearer transparency into our credit quality and equity strength, we've introduced a set of enhanced metrics," said CFO Andrew Kang, including "BTC Hurdle ARR" of 10.8%, which represents the company's current effective cost of credit (8-K filing, 2026-07-30).
Strategy established a $1.0 billion Digital Credit Securities repurchase program and a separate $1.0 billion MSTR common stock repurchase program. From July 20-26, the company repurchased 288,930 shares of STRC for approximately $25.00 million at an average price of $86.53 per share, a 13.47% discount to the $100 stated value (8-K filing, 2026-07-30). No common stock repurchases have been executed to date.
The company also disclosed a new "BTC Monetization Program," having sold approximately $218.4 million of bitcoin year-to-date to fund preferred stock dividends (8-K filing, 2026-07-30).
Core Business and Outlook
Strategy's legacy enterprise analytics software business generated total revenues of $122.4 million in Q2 2026, up 6.9% year-over-year, with gross profit of $81.6 million representing a 66.6% gross margin (8-K filing, 2026-07-30).
According to MarginX data, the company is expected to report Q3 2026 results on October 30, 2026. Recent insider activity shows director Jarrod M. Patten exercised options and sold 1,950 shares.
This article was generated by MarginX from the 8-K filing on 2026-07-30. It is not investment advice.