Strategy reported an $8.33 billion second-quarter operating loss after Bitcoin's 27% decline this year drove a sharp reduction in the value of its digital asset portfolio. The company recorded an $8.32 billion unrealized loss on digital assets during the quarter, contributing to the operating loss. This result reversed the $14.05 billion unrealized gain recorded in the same quarter a year earlier.
Quarterly Results
Strategy held 843,775 BTC as of July 26, an increase of 25% since the start of the year, with an original cost of $63.69 billion and a market value of $54.77 billion. Its average purchase price stood at approximately $75,476 per Bitcoin, and with BTC trading near $64,700 after the report, the company's position was about $10,776 underwater per coin based on its average acquisition cost.
Financial Flexibility
The company's core software business generated quarterly revenue of $122.4 million, up 6.9% from $114.5 million a year earlier, and cut its convertible debt by 18% to $6.71 billion after repurchasing $1.5 billion of notes at a discount. Strategy's U.S. dollar reserve rose by $525 million to $3.75 billion, providing 2.1 years of coverage for preferred stock dividends under its current policy.
