Strategy Suffers $8.2B Loss as Bitcoin Slump Weighs Heavily

Strategy, formerly known as MicroStrategy, reported a significant net loss of US$8.22 billion for the second quarter, reversing the US$10.02 billion net income it achieved in the same period last year.

The company's Bitcoin holdings are largely responsible for this swing, with an unrealised loss of US$8.32 billion on its Bitcoin accounts accounting for almost all of the net loss.

Strategy carries its Bitcoin at fair value, so every move in the price directly impacts earnings.

In contrast to last year's gain of US$14.05 billion, this quarter's unrealised loss highlights the volatile nature of Bitcoin prices and their impact on companies like Strategy that hold large amounts of it.

Strategy's weekly filings also show no purchases for five straight weeks, with the most recent reported purchase being 520 BTC in mid-June.