MSTR Shares Plummet as Strategy Reports $8.22 Billion Net Loss

Strategy shares declined following its Q2 earnings release, but the company's $3.75 billion reserve provides some breathing room for its Bitcoin position.

The company reported a net loss of $8.22 billion, mainly due to an $8.32 billion unrealized Bitcoin loss.

Despite this, Strategy's CFO Andrew Kang noted that the 'current effective cost of credit' stands at 10.8%, meaning Bitcoin needs to deliver an annual return higher than that rate for net Bitcoin per share to achieve a positive spread.