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Strategy (MSTR) posts $8.2B second-quarter loss as bitcoin markdown hits

The company reported it now holds 843,775 bitcoin worth about $54.8 billion, down from its $63.7 billion acquisition cost, and said it built a $3.75 billion USD reserve covering more than two years of preferred dividends and interest.

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Strategy Executive Chairman Michael Saylor’s firm Strategy (MSTR), the largest corporate holder of bitcoin, reported an $8.2 billion second-quarter net loss, driven almost entirely by an $8.32 billion unrealized markdown on its bitcoin holdings under fair-value accounting, according to CoinDesk.

Strategy said it held 843,775 bitcoin as of July 26, which it valued at about $54.8 billion at current prices versus a $63.7 billion acquisition cost, as the cryptocurrency price decline erased billions from the value of its digital asset stack.

The company also detailed capital moves this year, raising $17.06 billion through at-the-market stock offerings and repurchasing $1.5 billion of convertible notes at an 8% discount, while expanding its U.S. dollar reserve to $3.75 billion.

Strategy said it has begun monetizing some bitcoin under a new BTC Monetization Program, selling about $218.4 million worth, and added it is pursuing a “Digital Credit” business and a $1 billion share repurchase authorization. In a statement cited by CoinDesk, CFO Andrew Kang said the USD reserve is enough to cover existing preferred dividend payments and interest obligations for more than 2.1 years.

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