Strategy, the largest publicly traded corporate holder of bitcoin, reported an $8.22 billion net loss for the second quarter of 2026, driven primarily by unrealized fair value changes on its bitcoin holdings. Despite the loss, the company increased its bitcoin holdings to 843,775 BTC, reduced convertible debt, and expanded its USD Reserve during the period.

Q2 Loss Driven by Bitcoin Fair Value Changes

The $8.22 billion net loss for the second quarter of 2026 contrasts sharply with net income of $10.02 billion recorded in the same period a year earlier. The swing reflects unrealized fair value changes on the company's digital asset holdings. Under current accounting standards, Strategy must mark its bitcoin holdings to market price each reporting period, meaning reported earnings fluctuate with bitcoin's price even when no coins are bought or sold.

Operating loss for the quarter reached $8.33 billion, compared with $14.03 billion in operating income a year prior. The operating loss includes an unrealized loss on digital assets of $8.32 billion. By comparison, 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, compared with diluted net income of $32.60 per share in the second quarter of 2025. Net loss attributable to common stockholders totaled $8.62 billion after preferred dividends.

Strategy announces Q2 2026 results:
– Increased $BTC Holdings by 11%
– Reduced Convertible Debt by 18%
– Increased USD Reserve by 12%
– Increased BPS by 5%

— Strategy (@Strategy) July 30, 2026

Chief Executive Officer Phong Le said the company strengthened its balance sheet "while navigating a meaningful bitcoin price decline." Le pointed to bitcoin holdings growth, reduced convertible debt, and higher Bitcoin Per Share (BPS) as key gains during the quarter. BPS is a company-defined metric tracking the amount of bitcoin backing each share of Strategy stock.

Bitcoin Holdings Reach 843,775 BTC

Strategy's bitcoin holdings grew to 843,775 BTC as of July 26, 2026, an 11% quarterly increase and a 25% increase year to date. The average cost basis per coin stands at approximately $75,476. The 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, contributing directly to the unrealized loss recorded during the quarter. Despite this, Strategy achieved a BTC Yield of 4.5% year to date in 2026 and reported a BTC dollar gain of $1.95 billion year to date based on current market pricing. BTC Yield is the company's custom performance metric measuring the percentage growth in bitcoin holdings relative to shares outstanding and other obligations.

Total revenues for the quarter reached $122.4 million, a 6.9% increase year-over-year. Gross profit was $81.6 million, representing a 66.6% gross margin.

Chief Financial Officer Andrew Kang noted that the USD Reserve now stands at $3.75 billion, covering "more than 2.1 years" of dividend and interest obligations. 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

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 for approximately $1.38 billion, representing an 8% discount to par value.

Strategy raised $17.06 billion through its at-the-market (ATM) offering programs during 2026 year to date. STRC issuances contributed $7.53 billion of that total, representing 254% growth. STRC refers to Strategy's perpetual preferred stock, a vehicle the company has used to raise capital tied to its bitcoin treasury strategy. Cash and cash equivalents stood at $1.71 billion as of June 30, 2026.

Founder and Executive Chairman Michael Saylor 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.