Strategy posts $8.32B Q2 bitcoin loss, sells $216M in BTC

Strategy reported an $8.32 billion loss in the second quarter on its bitcoin holdings and disclosed the sale of 3,588 BTC for about $216 million between June 29 and July 5, the company said in a July 6 filing. The proceeds were used to fund preferred‑stock distributions and to replenish the U.S. dollar reserve set aside for those payments.

The company sold the bitcoin in two batches. It sold 1,363 BTC between June 29 and June 30 at an average price of $59,256, and 2,225 BTC between July 1 and July 5 at an average price of $60,773. Including an earlier 32 BTC sale, Strategy sold a total of 3,620 BTC in the second quarter.

The filing stated that the company’s cost basis for its bitcoin holdings exceeded fair value as of June 30, 2026. As a result, Strategy recorded an $8.32 billion valuation allowance against related deferred tax benefits and deferred tax assets.

At the time of the filing, Strategy held 843,775 BTC that were acquired for about $63.69 billion, an average cost of roughly $75,476 per coin. Blockchain analytics firm Lookonchain estimated the recent disposals realized a loss of more than $55 million compared with the company’s average acquisition cost.

Strategy said the sale proceeds funded quarterly distributions on preferred securities STRF, STRE, STRK and STRD, and the full monthly dividend for STRC. The company also reported that it did not sell common shares through its at‑the‑market equity program during the week ended July 5, nor did it repurchase common or preferred shares. Strategy’s $1.25 billion Bitcoin Monetization Program remains available.

During the reporting period, Strategy was a net buyer overall, acquiring more than 85,000 BTC, while the recent sales represented one of the largest tranches the company has sold in years. The dollar reserve earmarked for preferred dividends and interest on debt stood at $2.55 billion as of July 5.

Reactions among market participants varied. Jiang Zhuoer, founder of the BTC.top mining pool, wrote that the sales could indicate heavier trading ahead and suggested further disposals might follow. Investor Bill Miller IV said realizing losses can provide tax‑loss harvesting benefits and demonstrate that bitcoin can be liquid enough to back corporate liabilities.

CEO Michael Saylor has described bitcoin as a form of digital capital and has pursued a financing structure that uses preferred stock, debt and reserves built around the company’s bitcoin position. The July filing outlines how the company is using bitcoin as part of its capital‑management plan, including paying preferred distributions and maintaining cash reserves.

The filing and related disclosures were submitted to regulators on July 6 and reflect transactions executed between June 29 and July 5.