Strategy (NASDAQ:MSTR) shares fell 7% in pre-market trading after the company reported a wider-than-expected second quarter loss, largely driven by unrealized losses on its Bitcoin holdings.
The company reported a net loss of $8.22 billion, or $24.45 per diluted share, for the three months ended June 30, compared with net income of $10.02 billion, or $32.60 per share, in the year-ago period. The loss reflected an $8.32 billion unrealized loss on digital assets following a decline in Bitcoin prices during the quarter.
Revenue came in at $122.4 million, up 6.9% from $114.5 million a year earlier, but slightly below Wall Street expectations of about $122.9 million.
Strategy reported an operating loss of $8.33 billion for the quarter, compared with operating income of $14.03 billion in the same period last year, when the company recorded a large unrealized gain on its Bitcoin holdings.
Despite the quarterly loss, the company highlighted growth in its Bitcoin holdings and capital markets activities. As of July 26, Strategy held 843,775 Bitcoin, representing 25% growth year to date, and reported a 4.5% Bitcoin yield for 2026 so far.
The company also said it raised $17.06 billion through its at-the-market equity programs during the year and issued $7.53 billion of STRC preferred stock, while building its USD Reserve to $3.75 billion to cover preferred dividends and interest obligations for more than two years.
“In the second quarter of 2026, Strategy strengthened its balance sheet while navigating a meaningful Bitcoin price decline,” Strategy CEO Phong Le said in a statement.
“We grew our Bitcoin holdings by 11% to 846,000 Bitcoin, reduced our convertible debt by 18% to $6.7 billion, increased our USD Reserve by 12% to $2.4 billion, and grew Bitcoin Per Share by 5%.”
Strategy CFO Andrew Kang noted that the company introduced new metrics aimed at providing investors with greater transparency into its credit and equity position, including BTC Hurdle ARR and Net Bitcoin Per Share.
Founder and Executive Chairman Michael Saylor added that Strategy continues to develop its digital credit strategy amid “muted Bitcoin sentiment and market skepticism,” with the company focused on improving liquidity and stability for its preferred stock products.