Strategy Swings From $14B Profit to $8.2B Loss as Saylor Sells

Holdings Grow Even arsenic Sales Continue

Strategy disclosed the results successful its second-quarter 2026 fiscal report, published July 30. The institution grew its bitcoin stack 11% to 846,000 BTC by the June 30 quarter-end, funded mostly done equity and integer recognition offerings, past trimmed that full to 843,775 BTC by July 26 aft a consequent sale.

Image source: Strategy

The firm’s bitcoin per stock (BPS) metric, which president and co-founder Michael Saylor uses to reason Strategy inactive compounds worth for holders adjacent portion selling bitcoin, roseate 5% 4th implicit 4th to 210,824 satoshis. Net indebtedness fell 18%, from $8.2 cardinal to $6.7 billion, a simplification executives credited to the maturation of the company’s integer recognition concern alternatively than bitcoin income alone.

Strategy nevertheless posted an $8.22 cardinal quarterly nett loss, driven by unrealized markdowns connected its bitcoin presumption aft BTC’s terms pulled backmost sharply from its 2026 highs. The insubstantial nonaccomplishment does not impact the company’s underlying bitcoin count, but it has weighed connected MSTR shares, which person traded good disconnected their highs for the year.

The ‘Never Sell’ Doctrine Collapses

The Q2 filing confirms a displacement that began successful May, erstwhile Strategy sold 32 BTC astatine a loss, its first standalone nett bitcoin reduction since 2022. The determination ended 4 years of a nationalist “never sell” pledge Saylor had repeated astatine astir each net call.

That displacement accelerated successful aboriginal July, erstwhile Strategy sold 3,588 BTC for astir $216 million astatine an mean terms adjacent $60,000, realizing a $203 cardinal loss, to assistance money distributions connected its STRC perpetual preferred stock. The merchantability marked the company’s largest azygous bitcoin disposal since it began accumulating BTC successful 2020.

Saylor noted that the income were not a retreat from Strategy’s bitcoin treasury strategy but regular superior management. When asked connected the net telephone and whether the institution would alternatively thin connected options oregon different volatility-based tools to money its obligations, helium said:

There’s lone 1 institution successful the satellite that tin merchantability recognition astatine our scale.

Saylor argued that selling volatility products would present counterparty risk, adhd complexity to Strategy’s superior operation and make taxation complications the steadfast wants to avoid, leaving bitcoin income and integer recognition issuance arsenic its preferred levers instead.

Digital Credit Fills the Gap

Strategy’s integer recognition vehicle, STRC, has go cardinal to that attack with its notional worth increasing from $2.8 cardinal astatine the extremity of 2025 to $10.5 cardinal by the adjacent of the 2nd quarter. As a result, organization holders present relationship for 29% of outstanding STRC, up from 22% a 4th earlier.

The institution raised $8.4 cardinal successful full superior during the quarter, including $5.5 cardinal done integer recognition instruments, bringing its year-to-date superior raised to $17 cardinal (44% of it done integer recognition alternatively than accepted equity sales).

Strategy’s USD reserve, the currency buffer it uses to screen preferred dividends and involvement payments, grew 12% during the 4th to $2.4 billion, past jumped further to $3.75 cardinal aft a $544.5 cardinal stock merchantability betwixt July 20 and July 26. That reserve present covers astir 2.1 years of obligations, wrong the company’s people scope of 2 to 3 years and good supra its 12-month minimum threshold.

With 843,775 BTC connected its books aft its latest disposal, Strategy remains the largest organization holder of bitcoin globally.