Key Takeaways
- • Strategy (MSTR) recorded an $8.32 billion loss on digital assets for Q2 2026 (three months ended June 30), comprising $8.31 billion in unrealized losses and $0.01 billion in realized losses, driven by bitcoin price depreciation against its cost basis.
- • Bitcoin holdings declined to 843,775 BTC as of July 5, 2026 after Strategy sold 3,588 bitcoin between June 29 and July 5 for combined proceeds of $216 million, reducing its total position from 846,000 BTC at quarter-end.
- • Average purchase price of $75,578 per bitcoin significantly exceeds current fair value, with the company's bitcoin carrying value at $49.67 billion against an aggregate cost basis of $63.94 billion, reflecting an approximate 22% underwater position on its holdings.
- • Bitcoin sales funded preferred stock dividend distributions and USD reserve replenishment, with the company's cash reserve standing at $2.55 billion as of July 5 and a $1.25 billion Monetization Program fully available but unused.
- • Tax accounting impact requires valuation allowance against deferred tax benefits associated with unrealized losses, indicating the company's cost basis materially exceeded fair value at quarter-end.
Summary
Strategy (MSTR) disclosed significant bitcoin portfolio losses in its regulatory filing for the second quarter of 2026, reporting an $8.32 billion loss on digital assets for the three months ended June 30. The loss comprised $8.31 billion in unrealized losses and $0.9 million in realized losses, reflecting pronounced depreciation in bitcoin valuations since the company's earlier accumulation of holdings at substantially higher price levels.
As of June 30, 2026, Strategy maintained 846,000 bitcoin with a carrying value of $49.67 billion against an aggregate purchase price of $63.94 billion, representing an average cost basis of $75,578 per bitcoin. This pricing data reveals the company holds bitcoin positions purchased at prices significantly above current market valuations, resulting in a marked underwater position on the portfolio. The valuation mismatch triggered a requirement for a valuation allowance against deferred tax benefits associated with the unrealized losses during the quarter.
Between June 29 and July 5, 2026, Strategy actively sold bitcoin to generate liquidity for preferred stock distributions and cash reserve management. The company sold 1,363 bitcoin between June 29 and June 30 for $80.8 million at an average price of $59,256, followed by an additional 2,225 bitcoin sales from July 1 through July 5 for $135.2 million at an average price of $60,773. These transactions reduced total holdings to 843,775 bitcoin by July 5. The company's USD reserve stood at $2.55 billion as of July 5, with a $1.25 billion Monetization Program announced on June 29 remaining fully available and unused as of the filing date.
Strategy designated Andrew Kang as Executive Vice President and Chief Financial Officer and principal accounting officer effective June 30, 2026, following the retirement of Jeanine Montgomery, who previously served as Vice President and Chief Accounting Officer. During the June 29 to July 5 period, Strategy did not execute any share sales under its at-the-market offering program or repurchases under its share repurchase programs. The financial information was prepared by management without external audit or review by KPMG LLP.
As of June 30, 2026, Strategy maintained 846,000 bitcoin with a carrying value of $49.67 billion against an aggregate purchase price of $63.94 billion, representing an average cost basis of $75,578 per bitcoin. This pricing data reveals the company holds bitcoin positions purchased at prices significantly above current market valuations, resulting in a marked underwater position on the portfolio. The valuation mismatch triggered a requirement for a valuation allowance against deferred tax benefits associated with the unrealized losses during the quarter.
Between June 29 and July 5, 2026, Strategy actively sold bitcoin to generate liquidity for preferred stock distributions and cash reserve management. The company sold 1,363 bitcoin between June 29 and June 30 for $80.8 million at an average price of $59,256, followed by an additional 2,225 bitcoin sales from July 1 through July 5 for $135.2 million at an average price of $60,773. These transactions reduced total holdings to 843,775 bitcoin by July 5. The company's USD reserve stood at $2.55 billion as of July 5, with a $1.25 billion Monetization Program announced on June 29 remaining fully available and unused as of the filing date.
Strategy designated Andrew Kang as Executive Vice President and Chief Financial Officer and principal accounting officer effective June 30, 2026, following the retirement of Jeanine Montgomery, who previously served as Vice President and Chief Accounting Officer. During the June 29 to July 5 period, Strategy did not execute any share sales under its at-the-market offering program or repurchases under its share repurchase programs. The financial information was prepared by management without external audit or review by KPMG LLP.
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