Strategy Stock Plummets After Earnings Miss

Shares of Strategy (MSTR) declined by 4.5% in afternoon trading after missing expectations for its second-quarter 2026 earnings report.

The company's core software business met analyst predictions, with revenue growing 6.9% year-over-year to $122.4 million.

However, the adoption of new fair-value accounting rules during a cryptocurrency pullback led to an enormous unrealized loss on digital assets, contributing to a GAAP loss of $24.45 per share, significantly surpassing the consensus estimate for a profit of $3.07.

The company's operating loss included an $8.32 billion unrealized loss on its digital assets, in stark contrast to last year's $14.05 billion unrealized gain.