Strategy reported a second-quarter loss of $8.22 billion, swinging from a $10.02 billion profit a year earlier, as Bitcoin's price tumbled nearly 50% from its all-time high. The company, which now holds 843,755 Bitcoins worth $54.6 billion, paused its buying spree five weeks ago to focus on cash reserves.
A $126K peak to $64K reality
Bitcoin hit an all-time high of $126,080 in October 2025. It's now trading around $64,745, down 26% year-to-date. That slide crushed Strategy's paper gains. The company's massive hoard — the largest of any publicly traded firm — lost billions in value on the books, driving the $8.22 billion impairment charge.
Strategy's balance sheet moves
CEO Phong Le said the company strengthened its balance sheet during the price decline. Strategy increased its Bitcoin holdings by 11% in the quarter, but hasn't bought any new coins in the past five weeks. Instead, it's been building cash. The pause suggests management is wary of catching a falling knife — or simply wants more liquidity on hand.
MSTR stock down 80% from peak
Shares of Strategy are down more than 80% from their 2024 peak above $500. The stock has tracked Bitcoin's descent, and then some. Investors who bought the equity as a proxy for the crypto are sitting on steep losses. The company's market cap has shrunk accordingly.
Michael Saylor, the company's co-founder and executive chairman, said Strategy continues to evolve its business model and establish digital credit as a new asset class. He didn't offer specifics. The firm hasn't said when it will resume Bitcoin purchases. With the price still down 26% on the year, the timing of any new buys remains an open question.
