Strategy Reports $8.2B Q2 Loss Amid 11% Bitcoin Holding Surge

Strategy posts $8.2B quarterly loss driven by unrealized Bitcoin book values, despite holdings peaking at 846,000 BTC before recent sales.

Woofun AI reports that Strategy recorded an $8.2 billion loss in the second quarter, a sharp reversal from the $10 billion profit posted during the same period last year. This deficit primarily resulted from unrealized book losses associated with its Bitcoin portfolio.

The company’s Bitcoin holdings rose by 11% during the quarter, reaching a peak of 846,000 BTC before partial liquidations began, leaving current holdings at 843,775 BTC. Since the start of the year, Strategy sold approximately $218 million worth of Bitcoin to fund preferred stock dividends and paused acquisitions for five weeks to prioritize cash reserves. In late June, the firm introduced a Digital Credit Capital Framework to maintain a 12-month reserve for dividend and interest obligations, alongside authorizing up to $1.25 billion in Bitcoin monetization. CEO Phong Le noted an 18% reduction in convertible bonds to $6.7 billion and a 12% increase in dollar reserves to $2.4 billion, while CFO Andrew Kang stated total reserves now stand at roughly $3.75 billion, sufficient to cover expenses for approximately two years.