Strategy’s Q2 Financial Report: $8.2 Billion Loss, Primarily Attributable to Bitcoin Holdings

Bitcoin treasury firm Strategy released its second-quarter financial results, posting an $8.2 billion loss, compared to a $10 billion profit in the year-ago period. The loss stemmed primarily from unrealized paper losses on its Bitcoin holdings. As of press time, Strategy’s stock edged up 0.01% in after-hours trading. The company said its Bitcoin holdings rose 11% in Q2, hitting a peak of 846,000 BTC before it began selling off some of the assets. As of the latest filing, Strategy holds 843,775 BTC. Year-to-date, the firm has sold roughly $218 million worth of Bitcoin to cover preferred stock dividend payments. It had paused Bitcoin purchases for five consecutive weeks, prioritizing instead to expand its U.S. dollar cash reserves. At the end of June, Strategy rolled out its Digital Credit Capital Framework, which plans to build a minimum U.S. dollar reserve covering 12 months of preferred stock dividends and interest expenses, and authorized a maximum $1.25 billion Bitcoin monetization program to replenish reserves or fund dividend payments. CEO Phong Le noted that the company cut its convertible bond size by 18% to $6.7 billion in Q2, while lifting its U.S. dollar reserves by 12% to $2.4 billion. CFO Andrew Kang added that the firm’s current U.S. dollar reserves total around $3.75 billion, enough to cover related expenses for roughly two years, and it has made on-time dividend payments for 18 consecutive months.