Strategy (MSTR) reported an $8.2 billion net loss after Bitcoin (BTC) price fell from a year earlier. The company posted a $10 billion profit in the period of 2025.
Most of the loss came from an $8.32 billion fair-value decline on its Bitcoin holdings. The loss remained unrealized and reflected lower market prices rather than completed sales.
Strategy increased its Bitcoin holdings by 11% during the quarter, reaching about 846,000 BTC. The company later reduced that total and reported 843,775 BTC in its filing.
Bitcoin traded more than 40% below its level at the end of the second quarter of 2025. That drop lowered the value of Strategy’s holdings and drove most of the loss.
As of July 26, the company’s Bitcoin position was worth about $54.8 billion. Strategy had spent about $63.7 billion, leaving the portfolio below its purchase cost.
Strategy paused Bitcoin purchases for five weeks as it focused on building its U.S. dollar reserve. The company adopted this approach after STRC preferred shares moved below the $100 target.
Chief Financial Officer Andrew Kang said the reserve reached $3.75 billion. He said that amount could cover preferred dividends and interest payments for two years.
The company set a minimum reserve goal equal to 12 months of dividend and interest costs. Those obligations stood near $1.76 billion when Strategy introduced the policy in late June.
Strategy sold about $218.4 million of Bitcoin under its Bitcoin Monetization Program. The company used the proceeds to support preferred dividends and strengthen its cash position.
The program allows Strategy to sell up to $1.25 billion in Bitcoin when sales offer better terms than issuing MSTR common shares. This marked a change from its earlier holding policy.
Strategy also raised $17.06 billion through stock sales this year. It repurchased $1.5 billion of convertible notes at an 8% discount and cut convertible debt by 18% to $6.7 billion.
Strategy bought back 288,930 STRC shares for $25 million under a plan launched in June. Chief Executive Officer Phong Le said the company plans purchases when STRC trades below $100.
Le said the repurchases reduce future dividend costs while supporting the preferred stock structure. The company has made dividend payments for 18 straight months without missing one.
Strategy also approved a $1 billion MSTR share buyback program but has not used it.
MSTR shares closed at $97.21 after rising about 5% on Thursday.
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