Strategy Swings to $8. 2B Loss as Bitcoin Slump Weighs on Holdings
Strategy booked an $8. 22 billion second-quarter loss after an $8. 32 billion writedown on its Bitcoin, reversing a $10. 02 billion profit a year earlier. It has not bought Bitcoin for five weeks.
Strategy reported a net loss of US$8. 22 billion for the second quarter, against net income of US$10. 02 billion a year earlier, in results filed after the US close on Thursday. An unrealised loss of US$8. 32 billion on its Bitcoin drove the swing, compared with a US$14. 05 billion gain in the same quarter of 2025. Company filings show five consecutive weeks without a Bitcoin purchase, the last one a 520 BTC buy reported on 22 June. Strategy, formerly MicroStrategy reported a net loss of US$8. 22 billion (AU$11. 76 billion) for the three months to 30 June, or US$24. 45 (AU$34. 96) a share, reversing net income of US$10. 02 billion (AU$14. 33 billion) in the same quarter last year. The results were filed with the US Securities and Exchange Commission after the market closed on Thursday. An unrealised loss of US$8. 32 billion (AU$11. 90 billion) on the company’s Bitcoin accounts for almost all of it. Strategy carries itsBitcoinat fair value, so every move in the price runs through earnings, and the same line delivered a US$14. 05 billion (AU$20. 09 billion) gain in the second quarter of 2025. Similarly, operating loss came to US$8. 33 billion (AU$11. 91 billion). After US$400. 7 million (AU$573 million) of preferred dividends, up from US$49. 1 million (AU$70. 2 million) a year ago, the loss attributable to common shareholders was US$8. 62 billion (AU$12. 33 billion). Read more:SparkKitty Malware Stole Crypto Wallet Recovery Phrases From Photos on iPhones and Android DevicesFive Weeks Without a PurchaseStrategy’s weekly filings have recorded no Bitcoin purchases for five straight weeks, the most recent on 27 July. The last disclosed purchase was 520 BTC for US$34. 9 million (AU$49. 9 million), reported on 22 June. Strategy has instead sold US$218. 4 million (AU$312. 3 million) of Bitcoin this year to help fund preferred dividends, a program CNA reported when the first US$216 million (AU$308. 9 million) tranche went through in early July. Holdings still grew 11% over the quarter, from 762,099 BTC at the end of March to 846,000 at 30 June. The company held 843,775 BTC as of 26 July at a cost of US$63. 69 billion (AU$91. 08 billion), or US$75,476 (AU$107,931) a coin. At Bitcoin’s price of US$64,240 (AU$91,863) on Friday, that stack is worth about US$54. 2 billion (AU$77. 5 billion), roughly US$9. 5 billion (AU$13. 6 billion) below what Strategy paid. Read more:Blockchain Activity Climbs Despite Falling Crypto Prices, Bitwise Says