Strategy Targets Sept. 8 to Restore STRC After $8.22B Loss

Strategy posted an $8.22 billion second-quarter loss, driven mainly by an $8.32 billion writedown on its Bitcoin holdings. Michael Saylor set Sept. 8 as a target to restore the STRC preferred stock to its $100 stated value and rebuild the dollar reserve that supports STRC dividends.

The company reported about 846,000 BTC at quarter end and later reduced holdings to 843,775 BTC after selected sales to meet preferred-stock obligations. Bitcoin per diluted share rose to 210,824 satoshis during the quarter but had declined to 203,683 satoshis by July 26.

Strategy continued accumulating Bitcoin in 2026, acquiring 174,895 BTC and selling 3,620 BTC in the first seven months of the year. Management said those sales were small compared with overall purchases but reflected cash needs tied to the STRC program.

STRC, a variable-rate perpetual preferred launched in 2025, became a major funding source for Bitcoin purchases. Strategy raised $7.53 billion through STRC during the first seven months of 2026, and the preferred’s stated value rose to $10.5 billion by June 30 from about $5.3 billion at the end of March. Institutional holdings increased from $1.1 billion on March 17 to $3.1 billion by July 1, while retail investors held roughly 71% of the stock.

The preferred has traded below its $100 stated value, reducing the cash Strategy receives on new issuances. STRC’s market price fell to $74.57 on May 28 and later recovered toward $89. The security’s effective yield was about 13.6% in late July, reflecting a 12% dividend rate and the market discount to stated value.

Management identified a shrinking dollar reserve as a factor in STRC’s price decline. The designated dollar reserve fell to $871 million in late May, covering roughly six months of preferred dividends and interest. Strategy rebuilt the reserve to $3.75 billion, which executives say extends coverage to about 2.1 years.

The company authorized $1 billion in preferred-stock buybacks and has repurchased $25 million of STRC, leaving $975 million available under the program.

Saylor referenced the 70 trading days it took STRC to rise from $90 to $100 after its July 2025 launch and applied the same interval from the May 28 decline to set the Sept. 8 benchmark. “We’re keeping track of that date, and we’re keeping track of our progress,” he said.

Executives pointed to Strategy’s Bitcoin reserve, valued at roughly $58.5 billion, as a resource to support a repair. They said restoring STRC to par could require additional coin sales, new securities issuance or capital that would otherwise fund Bitcoin accumulation.

Chief Executive Phong Le said the STRC experience prompted a reassessment of how the company balances Bitcoin purchases with liquidity for preferred securities. Management plans to keep STRC’s dividend rate at 12% and to rely on the larger dollar reserve and open-market repurchases as primary repair measures while tracking progress against the Sept. 8 date.

The preferred program is part of Strategy’s plan to increase Bitcoin per diluted MSTR share over seven years. Le said the company aims to double Bitcoin per share through continued issuance of preferred securities and other digital credit. Strategy expects annual digital-credit issuance equal to between 10% and 20% of its Bitcoin reserve, which on a roughly $55 billion portfolio would translate to about $5.5 billion to $11 billion a year.