Strategy Inc. posted a staggering $8.22 billion net loss in Q2, driven largely by the drop in Bitcoin’s price. Despite the hit, the company still controls about 844,000 BTC, worth $54.77 billion as of late July. This is down from their average cost of $75,476 per coin, reflecting an unrealized loss on their massive bitcoin stash.
The company’s Bitcoin holdings grew 11% during the quarter, adding nearly 30,000 coins and pushing Bitcoin per share up 5%. Year-to-date, they've seen a BTC yield of 4.5% and a dollar gain of almost $2 billion, showcasing the long-term commitment to their crypto strategy.
Operating losses reached $8.33 billion, compared to $14 billion operating income a year earlier. Almost all of the loss came from an unrealized digital asset write-down. Meanwhile, their software business continues generating revenue, offering some buffer against the bitcoin-related slump.
This massive loss contrasts sharply with the previous year's $14 billion unrealized gain during the same quarter, underscoring volatility in digital asset markets. Strategy raised over $9.68 billion through share sales during and after the quarter, bolstering its balance sheet despite market challenges. The diluted loss per share hit $24.45, reflecting the heavy impact on shareholder value.
