Strategy Records $8.2 Billion Second-Quarter Loss
Strategy recorded an $8.2 billion second-quarter loss, driven almost entirely by an $8.32 billion unrealized markdown on its bitcoin holdings under fair-value accounting. As of July 26, the company held 843,775 bitcoin, more than at the start of the year. The holdings were worth roughly $54.8 billion at current prices, compared with an acquisition cost of $63.7 billion. The report came as investors increasingly scrutinized whether Strategy could sustain a complex capital structure built around multiple classes of preferred stock, common equity and convertible debt. The company raised $17.06 billion this year through at-the-market stock offerings, repurchased $1.5 billion of convertible notes at a discount and expanded its dollar reserve to $3.75 billion. That reserve is enough to cover more than two years of preferred dividend payments and interest expenses. The gap between Strategy’s bitcoin acquisition cost and its current market value makes the unrealized loss concrete. Somali bitcoin holders can use the same comparison to see the unrealized gain or loss in their own holdings.
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