- Strategy reported an $8.2 billion Q2 loss as Bitcoin’s price pushed its holdings below their purchase cost under fair-value accounting.
- The company continues to accumulate Bitcoin while selling a small portion to fund preferred-stock dividends.
Strategy, formerly known as MicroStrategy, reported an $8.22 billion net loss for the second quarter after Bitcoin’s price fell below the average cost of its holdings. The company remains the world’s largest corporate Bitcoin holder with 843,775 BTC, but its portfolio is now worth less than the amount it paid to acquire it.
The reported loss was driven almost entirely by fair-value accounting rules rather than Bitcoin sales. Under the accounting standard adopted in 2025, companies must recognize unrealized gains and losses on digital assets at market prices at the end of each quarter.
As a result, Strategy booked an unrealized loss of $8.32 billion on its Bitcoin holdings. A year earlier, the same accounting rule helped the company report a large profit when Bitcoin prices were significantly higher.
Despite the headline loss, Strategy’s software business remained profitable. Revenue from its enterprise analytics software increased 6.9% year-over-year to $122.4 million.
Bitcoin Investment Falls Below Purchase Price
As of July 26, Strategy’s Bitcoin holdings had an original cost of about $63.69 billion but a market value of roughly $54.77 billion. The company paid an average of approximately $75,476 per Bitcoin, while the market price stood near $64,915.
This marks the first time since 2023 that Strategy’s Bitcoin position has fallen below its total purchase cost. The development has renewed attention on the risks associated with its Bitcoin-focused treasury strategy.
Even with the decline, Strategy continued buying Bitcoin during the quarter. It increased its holdings by roughly 11%, funding the purchases through its at-the-market equity program, which raised more than $17 billion this year.
Strategy Begins Selling Bitcoin to Fund Dividends
While continuing to accumulate Bitcoin, Strategy has also started selling part of its holdings. Through its BTC Monetization Program, the company sold approximately $218.4 million worth of Bitcoin this year to help finance preferred-stock dividend payments.
The move represents a notable shift for the company, which had previously maintained a “never sell” approach to its Bitcoin reserves.
To strengthen its financial position, Strategy reduced its convertible debt by 18% to $6.71 billion and expanded its USD Reserve to $3.75 billion. According to the company, the reserve is sufficient to cover dividend payments and interest obligations for more than two years.
Bitcoin Metrics Remain Positive Despite Loss
Strategy also highlighted internal Bitcoin performance metrics, including a 4.5% BTC Yield and a BTC Dollar Gain of $1.95 billion year-to-date. The company emphasized that these figures measure Bitcoin growth per share rather than profitability and should not be viewed as financial performance indicators.
CEO Phong Le said the company continued strengthening its balance sheet despite lower Bitcoin prices. Executive Chairman Michael Saylor maintained his long-term confidence in Bitcoin and reiterated Strategy’s vision of building a new digital credit asset class.
However, critics continue to question the firm’s heavy reliance on Bitcoin and capital markets. Future performance will largely depend on Bitcoin’s price recovery and Strategy’s ability to continue raising funds.
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