Strategy Slumps to Record $8.6 Billion Loss on Bitcoin Write-Down, Vows $1 Billion Buyback

Strategy Inc. reported an $8.6 billion net loss in Q2 due to a non-cash fair-value write-down on its massive Bitcoin holdings, which fell to $58,700.

The company added 83,901 Bitcoins during the quarter, bringing its total hoard to 846,000 BTC, about 4% of all Bitcoin that will ever exist. The loss was driven almost entirely by an $8.3 billion unrealized fair-value charge.

Despite the loss, Strategy's balance sheet grew stronger, with a record $3.75 billion USD reserve covering 2.1 years of obligations and a reduction in long-term debt from $8.2 billion to $6.7 billion.

The company has allocated $1 billion for buybacks to restore its flagship digital credit instrument, STRC, to its $100 par value, which currently trades at around $89.50.