Strategy Inc. grows bitcoin holdings despite Q2 loss

Strategy Inc. posted an $8.2B Q2 loss from bitcoin markdowns, but grew holdings to 843,775 BTC, raised $17.06B, boosted reserves, cut debt, and introduced new financial metrics.

Strategy Inc. reported a significant net loss of $8.2 billion for the second quarter, mainly due to an $8.32 billion unrealized markdown on its bitcoin holdings. The company now holds 843,775 BTC, representing about 4% of all bitcoin ever mined. Despite the loss, Strategy’s bitcoin position is approximately $9 billion below its $63.7 billion acquisition cost, with a current market value of $54.8 billion. In Q2, Strategy increased its bitcoin holdings by 11% and raised $17.06 billion through capital programs, boosting USD reserves to $3.75 billion—enough to cover over two years of preferred dividends and interest. The company also reduced convertible debt by 18%, repurchased $1.5 billion of notes at a discount, and sold $218 million in bitcoin to fund dividends. Additionally, Strategy introduced new financial metrics, including BTC Hurdle ARR at 10.8%. The company is developing a model focused on capital raising, liability management, and performance measurement through a per-share bitcoin lens, while also pursuing a Digital Credit business and a $1 billion share repurchase authorization.