Strategy reported an $8.33 billion operating loss in Q2, driven by a steep 27% drop in Bitcoin's price this year. The company’s Bitcoin holdings, totaling 843,775 coins, slid below their average purchase price of about $75,476, resulting in an $8.32 billion unrealized loss for the quarter.
Bitcoin traded near $64,700 after the earnings release, down significantly from roughly $88,400 at the end of 2025. Despite increasing its Bitcoin stash by 25% since January, Strategy’s portfolio market value fell to $54.77 billion from an original cost of $63.69 billion. Last year at this time, the company had seen a $14.05 billion unrealized gain, highlighting the volatility of crypto assets.
Net loss hit $8.22 billion, or $24.45 per diluted share, a sharp reversal from the $10.02 billion net income earned in Q2 2025. Revenues rose modestly to $122.4 million, with gross profit margins of 66.6%. Strategy raised $17.06 billion in capital markets this year and reported a 4.5% Bitcoin yield. It also repurchased $1.5 billion in convertible debt, cutting its outstanding balance by 18% to $6.71 billion and built a $3.75 billion cash reserve to cover dividends and interest for more than two years.
The firm sold approximately $218.4 million worth of Bitcoin to fund preferred dividends and launched separate $1 billion buyback programs for both common stock and digital credit securities. Shares remained largely unchanged in after-hours trading following the results.
