TLDR
- Strategy disclosed an $8.32 billion second-quarter loss on its digital asset holdings in 2026
- The firm liquidated 3,588 Bitcoin total — 1,363 BTC during June 29–30 and 2,225 BTC from July 1–5
- All Bitcoin sales occurred below the company’s average acquisition cost of $75,476 per unit
- MSTR shares declined as much as 4.5% to $96.29 following the disclosure
- Sale proceeds were allocated toward preferred stock dividend payments and bolstering the company’s USD cash reserve, which reached $2.55 billion as of Sunday
Strategy (MSTR) shares tumbled as much as 4.5% to $96.29 on Monday morning following the company’s disclosure of an $8.32 billion digital asset loss in its second quarter and confirmation of recent Bitcoin liquidations.
Shares had finished Thursday’s session with a 7.9% gain. Over the weekend, Chairman Michael Saylor shared the company’s Bitcoin acquisition record on social media, temporarily boosting investor sentiment before Monday’s regulatory filing dampened the mood.
MSTR was hovering around $99.81, down 0.9%, before investors learned the complete scale of the losses. As of Friday’s closing bell, the stock had shed approximately one-third of its value year-to-date in 2026.
Bitcoin (BTCUSD) declined 1.34% on Monday. The digital currency has retreated roughly 30% from its April 2025 highs.
Strategy liquidated 1,363 Bitcoin during June 29–30 at an average selling price of $59,256 per coin, generating $80.8 million in proceeds. The company subsequently sold another 2,225 Bitcoin from July 1–5 at an average price of $60,773, yielding $135.2 million.
The combined sales total 3,588 Bitcoin offloaded in less than a week, with every transaction executed below the firm’s average purchase price of $75,476 per coin.
Strategy currently maintains 843,775 Bitcoin in its treasury, purchased at an average cost of approximately $75,476 each.
Why Strategy Sold
The firm stated that revenue from the Bitcoin liquidations was directed toward funding preferred stock distributions and replenishing its U.S. dollar cash reserves.
Strategy keeps this USD reserve to satisfy dividend obligations on preferred shares and service interest payments on existing debt obligations. The reserve balance stood at $2.55 billion as of Sunday.
These sales come on the heels of a comprehensive financial restructuring Strategy unveiled on June 29, designed to shore up the company’s financial position and restore confidence among shareholders.
Market Reaction
Coinbase Global (COIN) edged down 0.4% on Monday, while Robinhood Markets (HOOD) climbed 2.1%.
The second-quarter loss of $8.32 billion represents one of the most substantial digital asset impairments the firm has ever disclosed. The loss stems directly from liquidating Bitcoin holdings at prices lower than the company’s original purchase costs.
Strategy’s USD cash reserve totaled $2.55 billion as of Sunday, July 6.
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