Strategy Announces $8.32 Billion Bitcoin Loss and Sells BTC for Dividend

Strategy (MSTR) disclosed a loss of $8.32 billion in digital assets for the quarter ending June 30, 2026, consisting of $8.31 billion in unrealized losses and $0.9 million in realized losses. This announcement highlights the impact of cryptocurrency market fluctuations on companies' financial situations.

As of June 30, 2026, Strategy held 846,000 bitcoins, with a carrying value of $49.67 billion and a total cost basis of $63.94 billion. The average cost per bitcoin was $75,578. The company sold 1,363 bitcoins between June 29 and 30, 2026, generating $80.8 million in revenue, with an average selling price of $59,256. Between July 1 and 5, 2026, Strategy sold an additional 2,225 bitcoins, resulting in $135.2 million in revenue, with an average price of $60,773. As of July 5, the total bitcoin holdings decreased to 843,775. The proceeds were used to finance dividend distributions and replenish the USD reserve.

Strategy noted that the cost basis of its bitcoin exceeded its fair value as of June 30, 2026, requiring a valuation allowance against deferred tax assets and liabilities. The financial information was prepared by management and not audited or reviewed by KPMG LLP.

As of July 5, 2026, Strategy’s USD reserve was $2.55 billion. On June 29, 2026, the company announced a BTC Profit Program, allowing for the sale of bitcoin to generate up to $1.25 billion in additional revenue for the reserve. As of July 5, the full capacity of the program remained unused.

Conclusion and Analysis: Strategy’s disclosed loss of $8.32 billion demonstrates the impact of cryptocurrency market volatility on companies' financials. The company’s bitcoin sales and USD reserve replenishment aim to achieve a more stable financial structure in the future. However, as cryptocurrency market uncertainty persists, the path forward for companies in this space remains uncertain.