MSTR Stock Rises 4.73% Despite $8.22 Billion Q2 Loss

Key Insights:

• Strategy posted an $8.22 billion Q2 loss. An $8.32 billion unrealized markdown on Bitcoin holdings in total drove it.
• Strategy held 843,775 BTC worth roughly $54.8 billion. That’s below its $63.7 billion acquisition cost recorded as of July 26, 2026.
• The firm plans further Bitcoin sales to replenish cash reserves, fund preferred dividends, pay interest, and support buybacks.

Strategy shares rose even after the company reported an $8.22 billion second-quarter net loss. MSTR stock closed at $97.74, gaining 4.73% during the regular U.S. trading session.

The shares held near that level after earnings in extended trading. Many market readers still use the term “MicroStrategy stock” when searching for the company’s shares.

Strategy reported an $8.33B operating loss for the quarter ending June 30, compared with a high income one year earlier. An $8.32 billion loss on digital assets accounted for nearly all of the operating decline.

The company recorded a net loss of $8.22 billion, equal to $24.45 per diluted common share. Preferred stock dividends reached $400.7 million, lifting the loss attributable to common shareholders to $8.62 billion.

Bitcoin’s second-quarter decline reduced the reported value of Strategy’s large digital asset portfolio. The company ended June with 846,000 Bitcoin before sales lowered holdings to 843,775 Bitcoin by July 26.

Strategy listed an original acquisition cost of $63.69 billion and a market value of $54.77 billion for those holdings. Its Bitcoin position still grew 25% during 2026, while its year-to-date BTC yield reached 4.5%.

MSTR stock rose after the company reported growth in the software business alongside the accounting loss. Quarterly revenue reached $122.4 million, up 6.9% from $114.5 million one year earlier.

Gross profit increased to $81.6 million, although the gross margin narrowed to 66.6% from 68.8%. Cash and equivalents totaled $1.71 billion at quarter-end, alongside $736.1 million in short-term investments.

The share gain did not erase the risks linked to Bitcoin price movements. Strategy uses fair-value accounting, so quarterly cryptocurrency changes can produce large gains or losses. The company’s average Bitcoin purchase price stood near $75,476, while Bitcoin traded near $64,915 on July 27.

Strategy increased its United States dollar reserve to $3.75 billion after facing questions about preferred dividends and debt costs. Management said the reserve can cover existing preferred dividends and interest obligations for more than 2.1 years.

The company also completed 18 consecutive months of dividend payments without missing one. Strategy raised the STRC dividend rate to 12% to support trading near its $100 stated value.

The reserve gives Strategy more flexibility when Bitcoin trades below its average purchase cost. Strategy raised $17.06 billion through at-the-market programs during 2026 through July 26.

It also repurchased $1.5 billion of convertible notes for about $1.38 billion. That reduced the outstanding convertible debt to $6.71 billion. The discounted transaction lowered debt and reduced potential dilution from future note conversions.

Strategy sold about $218.4 million of Bitcoin during 2026 to fund part of its preferred stock dividends. The company sold 1,363 Bitcoin for $80.8 million in late June.

It sold another 2,225 Bitcoin for $135.2 million during the first five days of July. These transactions marked a change from its earlier practice of retaining every Bitcoin purchase.

Management plans to continue Bitcoin sales when market conditions support reserve funding, dividend payments, interest costs, or security repurchases. Future capital raises will not flow entirely into Bitcoin purchases.

Strategy will divide proceeds between Bitcoin and cash reserves based on liquidity needs and market conditions. Management currently rejects Bitcoin-backed borrowing because counterparty and margin risks could pressure the balance sheet.

The company also introduced a $1 billion MSTR stock repurchase program, but had not bought common shares by July 26. Strategy separately spent $25 million repurchasing 288,930 STRC preferred shares below their $100 stated value.

Management plans further STRC purchases while the security trades below par. About $975 million remained available under the preferred security repurchase authorization.

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