Strategy reported an $8.33 billion operating loss in the second quarter, driven by Bitcoin’s sharp 27% drop this year. The company’s digital asset portfolio took a major hit, with unrealized losses piling up as the cryptocurrency declined.
Holding 843,775 BTC as of July 26, Strategy’s Bitcoin stash was valued at $54.77 billion, down from its original acquisition cost of $63.69 billion. That means each Bitcoin in their portfolio was roughly $10,776 underwater, given an average purchase price near $75,476 per coin. This gap led to an $8.32 billion unrealized loss on digital assets during the quarter, reversing a $14.05 billion unrealized gain from the same period last year.
Investor Reaction and Financials
Strategy posted a net loss of $8.22 billion, or $24.45 per diluted share, compared to net income of $10.02 billion a year earlier. Despite the steep losses, shares barely moved after the earnings release, indicating that investors had anticipated the impact of Bitcoin’s slump. The company holds a $3.75 billion reserve, enough to cover preferred dividend payments for over two years.
Since the start of 2025, Strategy increased its Bitcoin holdings by 25% but paused purchases between July 20 and 26, maintaining its 843,775 BTC position. While the quarterly loss is mostly unrealized, it reflects the significant challenges faced as Bitcoin’s market price fell from around $88,400 at the end of 2025 to near $64,700 after the earnings announcement.
This content is for informational purposes and does not constitute financial advice.
