TLDR:
- Strategy posted an $8.22 billion net loss in Q2 2026 from bitcoin fair value changes.
- Bitcoin holdings reached 843,775 BTC as of July 26, up 25% year to date in 2026.
- Convertible debt fell to $6.71 billion after Strategy repurchased notes at a discount.
- USD Reserve grew to $3.75 billion, covering over 2.1 years of dividend obligations.
Strategy reported an $8.22 billion net loss for the second quarter of 2026, driven by fair value changes tied to its bitcoin holdings.
The company now holds approximately 843,775 BTC as of July 26, 2026, up 25% year to date. Despite the loss, Strategy strengthened its balance sheet and reduced debt during the period.
Q2 Loss Tied to Bitcoin Price Decline
Strategy posted a net loss of $8.22 billion for the second quarter of 2026. This compares with net income of $10.02 billion for the same period a year earlier. The swing reflects unrealized fair value changes on the company’s digital asset holdings.
Operating loss for the quarter reached $8.33 billion, compared to $14.03 billion in operating income a year prior. This figure includes an unrealized loss on digital assets of $8.32 billion. The prior-year quarter had recorded a $14.05 billion unrealized gain on the same holdings.
Net loss per common share on a diluted basis was $24.45 for the quarter. This compares with net income of $32.60 per diluted share in the second quarter of 2025. Net loss attributable to common stockholders totaled $8.62 billion after preferred dividends.
Chief Executive Officer Phong Le addressed the difficult conditions the company faced during the quarter. Strategy strengthened its balance sheet “while navigating a meaningful bitcoin price decline,” he said. Le pointed to bitcoin holdings growth, reduced convertible debt, and higher Bitcoin Per Share as key gains.
Bitcoin Holdings Reach 843,775 BTC
Strategy’s bitcoin holdings grew to 843,775 BTC as of July 26, 2026, an 11% quarterly increase. The average cost basis per coin stands at approximately $75,476. Market value of the holdings totaled $54.77 billion based on bitcoin’s July 27 price.
Bitcoin traded at roughly $65,028 on July 30, below the company’s average purchase price. This price gap contributed directly to the unrealized loss recorded during the quarter. Still, Strategy achieved a BTC Yield of 4.5% year to date in 2026.
The company reported a BTC dollar gain of $1.95 billion year to date, based on current market pricing. Total revenues for the quarter reached $122.4 million, a 6.9% increase year-over-year. Gross profit came in at $81.6 million, representing a 66.6% gross margin.
Chief Financial Officer Andrew Kang commented on the company’s financial position amid the drawdown. The USD Reserve now stands at $3.75 billion, covering “more than 2.1 years” of dividend and interest obligations, he said.
Kang added that Strategy has built “a track record of 18 months of consecutive dividend payments, having never missed a dividend despite the recent deep drawdown in bitcoin price.”
Debt Reduction and Capital Raising Continue
Convertible debt declined to $6.71 billion from $8.21 billion at the end of the prior quarter. In May 2026, Strategy repurchased $1.50 billion in principal amount of its 2029 notes. That transaction cost approximately $1.38 billion, an 8% discount to par value.
Strategy raised $17.06 billion through its at-the-market offering programs during 2026 year to date. STRC issuances contributed $7.53 billion of that total, representing 254% growth. Cash and cash equivalents stood at $1.71 billion as of June 30, 2026.
Founder and Executive Chairman Michael Saylor addressed the broader market backdrop facing the company. He described current conditions as “this phase of muted bitcoin sentiment and market skepticism.”
Saylor said the company continues to “evolve our business model and establish Digital Credit as a new asset class.”
Strategy also maintains board authorization to sell bitcoin under its BTC Monetization Program. The company sold approximately $218.4 million in bitcoin year to date to fund preferred dividends. A separate $1.0 billion MSTR repurchase program has recorded no activity to date.
