Key facts
- Strategy reported an $8.2 billion net loss for the second quarter.
- The loss was primarily driven by an $8.32 billion unrealized markdown on its Bitcoin holdings.
- The company holds 843,775 Bitcoin, valued at $54.8 billion, with an acquisition cost of $63.7 billion.
- Strategy has increased its U.S. dollar reserve to $3.75 billion.
- The company has begun selling Bitcoin under a new monetization program, offloading approximately $218.4 million.
Strategy, the world's largest corporate holder of bitcoin, reported an $8.22 billion net loss for the second quarter, primarily due to an $8.32 billion unrealized markdown on its bitcoin holdings reflecting price declines. The company holds 843,775 bitcoin, currently valued at $54.8 billion, against an acquisition cost of $63.7 billion.
Amid investor scrutiny over its capital structure, Strategy raised $17.06 billion through stock offerings this year and repurchased $1.5 billion of convertible notes at a discount. The firm also increased its U.S. dollar reserve to $3.75 billion, sufficient to cover over two years of preferred dividend and interest payments.
Departing from its accumulation strategy, Strategy has begun selling bitcoin under a new monetization program, offloading approximately $218.4 million to fund operations and dividends. Executive Chairman Michael Saylor highlighted the company's focus on developing its 'Digital Credit' business as a new asset class.
Strategy also authorized a $1 billion share repurchase program for its common stock and has been repurchasing preferred shares at a discount.