Company Records Large Quarterly Digital Asset Loss
Strategy (NASDAQ:MSTR) shares fell 1% on Monday after the company disclosed an $8.32 billion loss on its digital asset holdings for the quarter ended 30 June 2026 and revealed that it had sold bitcoin to fund preferred stock distributions.
According to a regulatory filing, the company recognized $8.31 billion in unrealized losses and a further $0.9 million in realized losses during the quarter.
Bitcoin Sales Used to Fund Shareholder Distributions
Strategy completed two separate bitcoin sales during the reporting period.
Between 29 June and 30 June, the company sold 1,363 bitcoin for approximately $80.8 million at an average price of $59,256 per bitcoin. It then sold another 2,225 bitcoin between 1 July and 5 July, generating about $135.2 million at an average selling price of $60,773 per bitcoin.
The proceeds were used to finance preferred stock dividends and replenish the company’s U.S. dollar cash reserve.
Bitcoin Holdings Remain Significant
As of 30 June 2026, Strategy held 846,000 bitcoin with a carrying value of $49.67 billion and a total acquisition cost of $63.94 billion, representing an average purchase price of $75,578 per bitcoin.
Following the subsequent asset sales, the company’s holdings declined to 843,775 bitcoin as of 5 July.
Strategy also noted that the carrying cost of its bitcoin exceeded fair value at the end of the quarter, requiring the recognition of a valuation allowance against deferred tax assets related to unrealized losses.
Bitcoin Monetization Program Remains Available
The company’s U.S. dollar reserve totaled $2.55 billion as of 5 July.
On 29 June, Strategy introduced a BTC Monetization Program authorizing bitcoin sales capable of generating up to $1.25 billion in additional proceeds for its cash reserve. The company said none of that capacity had been utilized as of 5 July.
During the same period, Strategy neither sold shares through its at-the-market equity programme nor repurchased shares under its existing buyback authorizations.
Separately, the company appointed Executive Vice President and Chief Financial Officer Andrew Kang as principal accounting officer, effective 30 June, following the retirement of Jeanine Montgomery.