Strategy recorded an $8.22 billion net loss in the second quarter, mainly due to an $8.32 billion unrealized write-down on its Bitcoin holdings amid the cryptocurrency’s price drop.
The company increased its Bitcoin stash to 843,775 coins by late July, buying at an average price close to $75,476 per BTC. To support dividend payments, Strategy sold approximately $218.4 million worth of Bitcoin under a new monetization plan.
Despite losses, Strategy boosted its cash reserves to $3.75 billion, enough to cover over two years of dividends and interest. The firm also repurchased nearly 289,000 preferred shares at an average price of $86.53 each. Revenue rose 6.9% year-over-year to $122.4 million, with gross profit hitting $81.6 million for Q2, reflecting a 66.6% gross margin.
Michael Saylor said the company is adapting to current market skepticism by positioning Digital Credit as a new asset class to stabilize value and liquidity for preferred shares, aiming for steady long-term shareholder returns.
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