Strategy Inc. Reports $8.22 Billion Q2 Loss Amid Bitcoin Decline, Expands BTC Holdings to 843,775

Strategy Inc. Faces $8.22 Billion Loss Amid Bitcoin Market Retreat

July 27, 2026 — Strategy Inc. (NASDAQ: MSTR) has reported a staggering $8.22 billion net loss for the second quarter of 2026, a stark contrast to the $10.02 billion net income recorded during the same period last year. The significant downturn is largely attributed to a sharp decline in Bitcoin prices, which has resulted in a massive unrealized loss impacting the company’s earnings.

The company, however, continues to bolster its Bitcoin holdings, expanding its treasury to an impressive 843,775 BTC, a 25% increase since the beginning of the year. Despite the losses, Strategy’s Bitcoin position has a market value of approximately $54.77 billion, based on a July 27 price of $64,915 per Bitcoin. This is down from an original cost basis of $63.69 billion, or about $75,476 per Bitcoin.

In a detailed financial breakdown, Strategy reported an operating loss of $8.33 billion, including an $8.32 billion unrealized loss on digital assets. This marks a significant reversal from the $14.05 billion unrealized gain recorded in the second quarter of 2025.

On a brighter note, the company’s software business saw a revenue increase of 6.9%, totaling $122.4 million, with a gross profit of $81.6 million. However, the gross margin narrowed to 66.6%, down from 68.8% a year earlier.

Liquidity remains a focal point for Strategy, as the company has grown its U.S. dollar reserves to $3.75 billion, sufficient to cover over 2.1 years of preferred dividends and interest. To support these payments, Strategy disclosed $218.4 million in Bitcoin sales during 2026.

Executive Chairman Michael Saylor emphasized the company’s commitment to establishing Digital Credit as a new asset class while striving to stabilize demand for its preferred securities. In a bid to enhance shareholder value, Strategy has also authorized a $1 billion share repurchase program, although no shares have been bought back as of July 26.

As of the latest trading session, Strategy Inc. shares are priced at $97.57, while Bitcoin is trading at $64,728 per token. The company’s future hinges on navigating the volatile cryptocurrency market and leveraging its substantial Bitcoin holdings to recover from this quarter’s losses.