Strategy's Bitcoin Holdings Weigh Heavily on Q2 Earnings
Strategy's second-quarter earnings are set to face significant scrutiny due to its substantial Bitcoin holdings. At current prices, the company's unrealized loss on its Bitcoin position stands at over $10 billion.
The company holds 843,775 BTC on its balance sheet, acquired at an average price of $75,476 per coin. This loss is a result of the 50% decline in Bitcoin's value from its all-time high of $126,000 reached in October 2025.
Strategy's business model has been centered around accumulating and holding onto Bitcoin. However, recent sales have shifted this narrative. In June, the company sold 3,588 BTC for approximately $216 million to fund preferred stock distributions and replenish its USD reserve.
The market will be closely watching three key numbers: the unrealized loss on the Bitcoin position, the size of the USD reserve, and any guidance on future Bitcoin purchases. Analyst Ali Martinez has noted that Strategy's debt structure bears similarities to Terra/Luna's, making it vulnerable during periods of selling pressure.