Strategy, the Bitcoin treasury company formerly known as MicroStrategy, reported a second-quarter net loss of $8.22 billion, driven primarily by an $8.32 billion unrealized loss on its Bitcoin holdings as the price of the cryptocurrency fell during the quarter. The company, which adopted fair value accounting for its digital assets, sees periodic Bitcoin price swings flow directly through its income statement, magnifying the impact of quarterly market volatility on reported results.

As of Sunday, the company held 843,775 Bitcoin (BTC), representing a 25% increase from the start of the year. That position, accumulated since Strategy began purchasing Bitcoin as a treasury reserve asset in August 2020 under then-CEO Michael Saylor, represents more BTC than any other publicly traded company holds. Strategy disclosed that it sold approximately $218.4 million worth of Bitcoin under its newly established BTC monetization program to help fund a portion of its preferred stock dividend obligations. The majority of those sales — $216 million — were executed in early July, after the close of the second quarter.

In addition, Strategy said it has built a $3.75 billion U.S. dollar reserve, sufficient to cover more than two years of preferred dividend payments and interest obligations. The company recently repurchased $25 million of its STRC preferred shares at a discount to par value and stated its intention to continue repurchasing the securities while they trade below $100.

Bitcoin declined approximately 14% during the second quarter, falling from roughly $68,000 at the beginning of April to approximately $58,600 by the end of June, according to CoinGecko data. As of Thursday afternoon, Bitcoin was trading around $64,700.

Shares of Strategy (MSTR) finished the regular trading session on Thursday up 4.7% before slipping modestly in after-hours trading following the earnings release, according to Yahoo Finance data.