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Strategy Swings From $14B Profit to $8.2B Loss as Saylor Sells

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Strategy Inc. (Nasdaq: MSTR) reported an $8.22 billion net loss for the second quarter of 2026, driven by unrealized markdowns on its bitcoin holdings after a sharp price pullback. The loss reverses the $14 billion gain from the prior year. Despite the paper loss, the company increased its bitcoin stack by 11% to 843,775 coins by July 26, after selling a portion in early July.

In early July, Strategy sold 3,588 BTC for approximately $216 million at an average price near $60,000, realizing a $203 million loss to fund distributions on its STRC perpetual preferred stock. This marked the company’s largest single bitcoin disposal since it began accumulating in 2020 and ended a four-year public “never sell” pledge. Chairman Michael Saylor defended the sale as routine capital management, noting that selling volatility products would introduce counterparty risk and tax complications. He said, “There’s only one company in the world that can sell credit at our scale.”

Strategy’s digital credit vehicle, STRC, has become central to its funding strategy. Its notional value grew from $2.8 billion at end-2025 to $10.5 billion by Q2 close. Institutional holders now account for 29% of outstanding STRC, up from 22% a quarter earlier. The company raised $8.4 billion in total capital during the quarter, including $5.5 billion through digital credit instruments. Year-to-date capital raised reached $17 billion, 44% via digital credit.

Net debt fell 18% to $6.7 billion, attributed to digital credit growth rather than bitcoin sales. Strategy’s USD reserve, which covers preferred dividends and interest, grew 12% during Q2 to $2.4 billion, then jumped to $3.75 billion after a $544.5 million share sale between July 20 and 26. That reserve now covers roughly 2.1 years of obligations, within the company’s target range.

With 843,775 BTC, Strategy remains the largest institutional holder of bitcoin globally.

Source: https://news.bitcoin.com/featured/strategy-bitcoin-holdings-843775-btc-q2-2026/