Q2 Strategy Report Shows $8.2 Billion Loss, Driven by Bitcoin Holdings

According to Huoxing Finance, on July 31, Bitcoin treasury company Strategy released its second-quarter financial results, reporting a loss of $8.2 billion compared to a profit of $10 billion in the same period last year. The loss was primarily due to unrealized paper losses on its Bitcoin holdings. As of press time, Strategy’s stock rose slightly by 0.01% in after-hours trading. Strategy stated that its Bitcoin holdings increased by 11% in the second quarter, peaking at 846,000 BTC, after which it began selling portions of its assets. As of the latest disclosure, the company holds 843,775 BTC. So far this year, Strategy has sold approximately $218 million worth of Bitcoin to pay preferred stock dividends. The company had previously paused Bitcoin purchases for five consecutive weeks, prioritizing the expansion of its U.S. dollar cash reserves. At the end of June, Strategy launched a Digital Credit Capital Framework, planning to establish a minimum U.S. dollar reserve sufficient to cover 12 months of preferred stock dividends and interest expenses, while authorizing a Bitcoin liquidation program of up to $1.25 billion to supplement reserves or pay dividends. CEO Phong Le said the company reduced its convertible debt by 18% to $6.7 billion in the second quarter and increased its U.S. dollar reserves by 12% to $2.4 billion. CFO Andrew Kang noted that the company currently holds approximately $3.75 billion in U.S. dollar reserves—sufficient to cover related expenses for about two years—and has consistently paid dividends on time for 18 consecutive months.