Strategy's BTC Holdings Plummet Amid Unprecedented Loss

Strategy, a software company and one of the largest public Bitcoin treasuries, posted an $8.22 billion unrealized net loss in its Q2 2026 earnings report. The massive loss was due to the Bitcoin price falling below the company's average cost basis of $75,476. This is a significant increase from Wall Street projections of $2.15 billion.

Despite this unfavorable disclosure, Strategy noted that it had expanded its Bitcoin holdings by about 11% quarter-on-quarter. Its total holdings now stand at 843,775 bitcoins worth $54.64 billion at current market prices, maintaining its position as the leader among publicly traded Bitcoin treasuries.

The company's year-to-date BTC yield amounts to 4.5%, and it reported a gross BTC per share (BPS) value of $131.97, representing a 5% increase from the previous quarter. Debt obligations brought the net BTC per share value to $93.23, while earnings per share (EPS) were -24.45, missing the estimated $0.79.

Strategy's pause in Bitcoin purchases to focus on optimizing its balance sheet has paid off, with convertible debt down 18% to $6.7 billion. The move also prevented future stock dilution from notes converted into stock, and debt cuts proved the company had strong cash generation, further validated by its 12% increase in dollar reserves to $2.4 billion.