Strategy stock falls after $8.32B bitcoin loss and BTC sales

Investing.com -- Strategy (NASDAQ: MSTR) fell 1% Monday after the company disclosed an $8.32 billion loss on digital assets for the three months ended June 30, 2026, and sold bitcoin to fund preferred stock dividends.

The company recorded $8.31 billion in unrealized losses and $0.9 million in realized losses during the quarter, according to a regulatory filing. Strategy sold bitcoin in two separate transactions, first selling 1,363 bitcoin between June 29 and June 30 for $80.8 million at an average price of $59,256, followed by an additional 2,225 bitcoin between July 1 and July 5 for $135.2 million at an average price of $60,773. The proceeds were used to fund preferred stock distributions and replenish the company’s USD reserve.

As of June 30, 2026, Strategy held 846,000 bitcoin with a carrying value of $49.67 billion and an aggregate purchase price of $63.94 billion, reflecting an average purchase price of $75,578 per bitcoin. Total holdings declined to 843,775 bitcoin as of July 5.

The company noted that the cost basis of its bitcoin exceeded fair value as of June 30, requiring a valuation allowance against its deferred tax benefit and deferred tax asset associated with unrealized losses during the quarter.

Strategy’s USD reserve stood at $2.55 billion as of July 5. On June 29, the company announced a BTC Monetization Program allowing bitcoin sales to generate up to $1.25 billion in additional proceeds for the reserve, with the full capacity remaining unused as of July 5.

During the period from June 29 to July 5, Strategy did not sell any shares under its at-the-market offering program and did not repurchase any shares under its share repurchase programs.

The company also designated Andrew Kang, its Executive Vice President and Chief Financial Officer, as principal accounting officer effective June 30, following the retirement of Jeanine Montgomery.

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