Strategy Reports $8.22 Billion Loss Amid Bitcoin Slump

Strategy reported an $8.22 billion net loss for the second quarter, primarily due to a significant markdown on its Bitcoin holdings. The company's 843,775 Bitcoin, acquired at an average price of $75,476 each, are now valued at $54.77 billion, leaving the position approximately $8.9 billion underwater with Bitcoin trading near $64,915. This loss contrasts sharply with the company's software revenue, which increased by 6.9% to $122.4 million.

Despite the substantial loss, Strategy's executives highlighted several positive developments. The company raised its STRC preferred dividend rate to 12% and maintained a $3.75 billion dollar reserve to cover more than two years of obligations. Michael Saylor, the founder and executive chairman, emphasized the firm's commitment to building Digital Credit into a new asset class, despite market skepticism.

Analysts remain divided on the sustainability of Strategy's model, particularly during prolonged market downturns. JPMorgan's Nikolaos Panigirtzoglou noted that the firm's authorization to sell Bitcoin could introduce two-way risk for the wider market, as Strategy has been a major driver of net digital asset inflows this year. Shares of Strategy closed at $97.74 on Thursday, up 4.41% for the day but down over a third for the year.

The quarterly loss extends a challenging period for Strategy, which lost $12.8 billion in the first quarter due to similar accounting rules. In June, the company's board ended a four-year refusal to sell Bitcoin, which has since dropped nearly half from its October 2025 peak of around $126,000.