Strategy Inc. (MSTR) shares fell by up to 4.5% to $96.29 on Monday following the company's announcement of an $8.32 billion loss attributed to digital assets for the second quarter of 2026. This significant loss is partly due to the sale of Bitcoin, which was sold at lower prices than the company's average acquisition cost.
Bitcoin Sales Details
The company disclosed that it sold a total of 3,588 Bitcoin. Specifically, it sold 1,363 BTC between June 29 and June 30 at an average price of $59,256 each, generating $80.8 million. Following this, it sold an additional 2,225 BTC from July 1 to July 5 at an average price of $60,773 each, resulting in $135.2 million in proceeds. Given the average purchase price of Bitcoin for the company was $75,476, these sales were undertaken at a loss.
Use of Proceeds
The funds obtained from the Bitcoin sales were utilized to support distributions on preferred stock and to enhance the company's USD reserve, which was estimated at $2.55 billion as of July 6. Strategy maintains this reserve to ensure it can cover dividends on preferred stock and service existing debt obligations.
Market Reaction and Future Outlook
The stock had previously closed up 7.9% on Thursday before the news about its losses broke. On Monday, as understanding of the losses became clearer, shares were trading down 0.9% at approximately $99.81 prior to the announcement. Over the course of the year, MSTR stocks have lost about a third of their value.
Market activity was also affected, with Coinbase Global (COIN) dropping by 0.4%, while Robinhood Markets (HOOD) gained 2.1%. The reported loss marks one of the most considerable digital asset write-downs for Strategy to date, stemming from the sale of Bitcoin for less than its purchase price. These developments follow a financial overhaul revealed by the company on June 29, aimed at stabilizing operations and reassuring investors.
