Strategy Inc Reports $8.2 Billion Q2 Loss Amid Bitcoin Pivot

Strategy Inc reported a second-quarter 2026 net loss between $8.2 billion and $8.62 billion, a significant reversal from the nearly $10 billion profit recorded during the same period last year. The deficit resulted from unrealized paper losses on the company's Bitcoin treasury following a market decline, though revenue grew 6.9% to $122.4 million.

To manage liquidity and debt, the company transitioned from its strict buy-and-hold philosophy to a BTC Monetization Program. This shift stems from a Digital Credit Capital Framework adopted by the board on June 29, 2026, which authorizes the sale of up to $1.25 billion in Bitcoin. The company intends to build a U.S. Dollar reserve to cover 12 months of interest and preferred dividends for its variable-rate preferred stock (STRC), which carries a 12% annual dividend rate.

During the quarter, Strategy Inc sold 3,620 BTC, including a record $216 million disposal in early July, and has sold roughly $218 million in total assets to date. These actions increased the company's U.S. Dollar Reserve to $3.75 billion. Simultaneously, the firm reduced its convertible debt by 18% to $6.7 billion and launched a $1 billion repurchase program for digital credit securities. Despite the financial losses, the company's bitcoin-per-share metric increased by 5%.