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Strategy posts $8.22 billion Q2 loss driven by unrealized Bitcoin move

The loss reflected a fair value decline tied to about 846,000 Bitcoin, while management initiated a Bitcoin Monetization Program that included selling 3,588 BTC.

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Strategy Inc. reported a steep second-quarter net loss of $8.22 billion, which translated into negative earnings per share of $24.45, a result the company’s recent filings are described as largely driven by accounting treatment of its Bitcoin holdings rather than core operations. MarketBeat Ratings said Strategy’s large operating loss is primarily an accounting artifact tied to the fair value accounting of digital assets under ASU 2023-08.

According to MarketBeat Ratings, Bitcoin traded around $58,700 at the close of the second quarter, prompting Strategy to record an $8.32 billion noncash unrealized loss on its roughly 846,000 Bitcoin. The outlet also noted that if Bitcoin recovered later in the quarter, a fair value gain would remain unrecorded until the next reporting period.

MarketBeat Ratings further said Strategy has been strengthening its capital structure and liquidity, including by launching a formal Bitcoin Monetization Program. In the second quarter, it reported Strategy sold about 3,588 Bitcoin at a high cost basis, with proceeds used to fund preferred dividend obligations and generate an estimated $59 million potential tax asset.

Latest closeBitcoin $63,051.06 ▲0.5%

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