Particle.news

Strategy Reports $8.22 Billion Q2 Loss Driven by Bitcoin Markdown

Management is addressing funding needs by raising equity, repurchasing convertibles, building a $3.75 billion cash reserve, selling limited Bitcoin to cover dividend plus interest obligations.

Overview

  • The company posted an $8.22 billion net loss for the second quarter driven almost entirely by an $8.32 billion unrealized markdown on its Bitcoin holdings.
  • Strategy holds 843,775 BTC with an average purchase price near $75,476 per coin, making it the largest corporate holder and leaving the position below its cost basis.
  • Leadership raised about $8.41 billion through at-the-market offerings in the quarter and repurchased roughly $1.5 billion of 2029 convertible notes to cut outstanding convertibles to roughly $6.71 billion.
  • The firm increased its U.S. dollar reserve to about $3.75 billion and disclosed modest Bitcoin sales in 2026 to fund preferred dividends and interest while pausing fresh BTC buys for several weeks.
  • Software revenue grew 6.9% to $122.4 million, but this operating business remains small compared with the balance-sheet exposure to Bitcoin and the ongoing need to access capital markets.