Strategy has reported an $8.22 billion net loss in its Q2 2026 earnings, with the company's bitcoin holdings being the primary contributor to the loss. The loss is attributed to the decline in bitcoin's price, which fell from $86,000 to $64,915 during the quarter. As a result, Strategy's bitcoin holdings are now valued at $54.8 billion, down from their total acquisition cost of approximately $63.69 billion, leaving the company $9 billion underwater on its aggregate position.
Accounting Treatment
The loss is a result of the company's adoption of the Financial Accounting Standards Board's fair-value standard for digital assets, which requires marking to market at the end of every quarter. This standard has turned Strategy's income statement into a bitcoin price chart, with every quarterly earnings report being dominated by the movement of the asset.
Bitcoin Holdings
Strategy holds 843,775 bitcoin, purchased at an average price of $75,476 per coin. The company has sold bitcoin for the first time in four years, with 3,588 coins being sold for $218.4 million to fund preferred stock dividend payments.
Shift in Strategy
The company has formalized a shift in its approach, authorizing up to $1.25 billion in bitcoin sales to fund dividends, reserve maintenance, and debt service. This marks the end of the 'never-sell' era, as the company's CEO, Michael Saylor, had previously stated that the company would never sell its bitcoin holdings.
