Strategy Inc. shocked investors by reporting an $8.22 billion loss for the second quarter of 2026, wiping out last year’s $14 billion profit. This dramatic swing came despite the company increasing its bitcoin holdings by 11% to nearly 844,000 coins by the end of June. The catch: Strategy has started selling some of its bitcoin stash, a major change from its long-standing "never sell" policy.

Back in May, Strategy made headlines by selling 32 bitcoins at a loss, marking the first time since 2022 it reduced its BTC holdings. Then in early July, the company sold 3,588 bitcoins, raising about $216 million but realizing a $203 million loss. This sale was the largest single bitcoin disposal since the company began accumulating BTC in 2020, fueling dividend payments on its perpetual preferred stock.

Despite the losses on paper from bitcoin’s price drop since early 2026, Strategy’s overall bitcoin count grew, supported by fresh capital raised through equity and digital credit offerings. The company’s bitcoin per share metric, a key value indicator used by co-founder Michael Saylor, increased 5% quarter over quarter. Meanwhile, net debt declined by 18%, largely thanks to growth in Strategy’s digital credit business rather than bitcoin sales.

The market reacted negatively to the unrealized markdowns on Strategy’s bitcoin, pushing its stock down from earlier highs this year. Saylor insists that selling bitcoin is not a sign of retreat but a strategic move to balance shareholder payouts and growth. The company’s USD reserves now stand at $3.75 billion, enough to cover over two years of dividends.

Strategy’s shift from staunch hodling to selective selling illustrates the challenges bitcoin-focused firms face amid volatile prices and shareholder expectations. This pivot comes as other sectors adapt, with innovations such as crypto rewards transforming loyalty programs and digital assets reshaping finance. Strategy’s story highlights the tightrope walk between holding bitcoin for the long run and managing financial realities in a turbulent market.

This content is for informational purposes only and does not constitute financial advice.