Leading Bitcoin treasury company Strategy posted an $8.32 billion digital asset loss for the second quarter of 2026 after BTC’s sharp decline reduced the value of its massive holdings. The company also revealed that it sold more than 3,500 BTC between late June and early July to strengthen its cash position and meet preferred stock obligations.
According to a regulatory filing, the reported loss consisted almost entirely of unrealized declines in the value of its Bitcoin holdings, reflecting the impact of lower market prices during the quarter.
Bitcoin Decline Weighs on Strategy’s Balance Sheet
For Q2, which ended June 30, Strategy recorded $8.31 billion in unrealized losses and $900,000 in realized losses, bringing total digital asset losses for the quarter to $8.32 billion.
As of June 30, the company held 846,000 BTC with a carrying value of $49.67 billion. Strategy acquired those holdings for a combined $63.94 billion, giving Strategy an average purchase price of $75,578 per Bitcoin.
Because Bitcoin’s fair value fell below the company’s cost basis at quarter-end, Strategy said it was required to recognize a valuation allowance related to deferred tax benefits associated with those unrealized losses.
The company noted that the financial figures were prepared by management and have not yet been audited or reviewed by its independent accounting firm.
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Strategy Sells 3,588 BTC to Bolster Cash Reserve
Alongside the quarterly results, Strategy disclosed that it reduced its Bitcoin holdings over two separate transactions.
Between June 29 and June 30, the company sold 1,363 BTC for $80.8 million, receiving an average price of $59,256 per coin. It then sold another 2,225 BTC between July 1 and July 5, generating $135.2 million at an average price of $60,773. Combined, it amounted to 3,588 BTC, worth $225 million.
Following those sales, Strategy’s Bitcoin holdings stood at 843,775 BTC as of July 5. The company said it used the proceeds to fund preferred stock distributions while rebuilding its U.S. dollar reserve, which increased to $2.55 billion.
The news saw Bitcoin briefly drop below $62,000, down 1% in the past 24 hours. This is a better reaction to the initial 32 BTC sales in June, which sent the premier asset crashing below $60,000.
Bitcoin Monetization Program Remains Largely Untapped
Strategy also provided an update on its recently announced Bitcoin Monetization Program, introduced on June 29.
The initiative allows the company to sell Bitcoin to generate up to $1.25 billion in additional cash for its reserve. As of July 5, Strategy said it has not utilized any of the available capacity beyond the previously disclosed sales.
The filing also confirmed there was no activity under the company’s at-the-market share offering program or its share repurchase plans during the reporting period.
Separately, Strategy announced that Andrew Kang became the company’s principal accounting officer effective June 30, following the retirement of Jeanine Montgomery, who previously served as Vice President and Chief Accounting Officer.
Temitope Olajide
