Strategy Faces $8.2B Loss as Saylor Weighs Selling Up to $5 Billion in Bitcoin

Strategy, a company led by Michael Saylor, has reported a net loss of $8.22 billion for the second quarter. The main driver behind this loss was an $8.32 billion fair-value decline in its Bitcoin holdings. Strategy's Bitcoin position is currently below its total purchase cost, with each BTC valued at around $64,700.

The company has 843,775 BTC, acquired at an average cost of $75,476 each. Its original investment in Bitcoin was worth $63.69 billion, but the current market value is about $54.77 billion.

Strategy's stock slipped after the earnings report, with MSTR trading near $93.28, down 4.56%. Michael Saylor said the company increased its Bitcoin holdings by 11% in the quarter and pointed to an 18% reduction in convertible debt and a 12% increase in USD reserves.

The company's capital management framework could allow up to about $5 billion in Bitcoin monetization, which would support reserves, preferred dividends, interest payments, and buybacks. The funds could direct up to $1.25 billion toward USD reserves and help cover about $1.76 billion in annual preferred dividends and interest payments.