Strategy's $9 Billion Bitcoin Bet Goes Sour

Strategy's second-quarter earnings report revealed a $8.22 billion net loss, primarily driven by an $8.32 billion unrealized markdown on its Bitcoin holdings under fair-value accounting.

The company holds 843,775 Bitcoin purchased at an average price of $75,476 per coin, with a total acquisition cost of approximately $63.69 billion. At the reporting date price near $64,915, the portfolio was worth roughly $54.8 billion, leaving Strategy underwater by approximately $9 billion.

In a surprise move, Strategy sold Bitcoin for the first time in four years, disposing of 3,588 coins for $218.4 million to fund preferred stock dividends. The company has authorized up to $1.25 billion in future sales under its Digital Credit Capital Framework.