MicroStrategy reported an $8.22 billion net loss for the second quarter of 2026, driven almost entirely by unrealized fair-value losses on its Bitcoin holdings. The company, which now holds 843,775 BTC — the largest corporate Bitcoin treasury in the world — added nearly 30,000 coins during the first half of the year. Despite the paper loss, the firm's software business posted modest revenue growth and it continued to reduce debt.
The Bitcoin book
As of July 27, MicroStrategy's Bitcoin holdings stood at 843,775 BTC, up about 25% year-to-date. The company added 29,997 BTC in 2026, and recorded a BTC dollar gain of $1.69 billion based on Bitcoin's market price on July 31. But the accounting hit was brutal: an $8.32 billion unrealized loss on digital assets pushed the operating loss to $8.33 billion.
MicroStrategy also sold roughly $218.4 million worth of Bitcoin under its Bitcoin Monetization Program to fund preferred stock dividend obligations. That's a small fraction of the total stash — the company is clearly holding for the long haul.
Software business holds steady
The enterprise software side of the house isn't the headline, but it's still running. Revenue came in at $122.4 million, up 6.9% year-over-year, with a gross profit of $81.6 million and a 66.6% gross margin. Not explosive, but stable — and it helps cover operating costs while the Bitcoin strategy plays out.
Debt reduction and new metrics
MicroStrategy cut its convertible debt by 18%, repurchasing $1.5 billion of convertible notes at roughly an 8% discount to par value. It also boosted its USD Reserve to $3.75 billion, enough to cover more than 2.1 years of preferred dividend and interest obligations. The company launched a $1 billion MSTR share repurchase authorization, though no common share buybacks have been executed yet.
On the preferred side, MicroStrategy has started repurchasing STRC preferred shares below par value while maintaining a 12% dividend rate. The company also introduced two new investor metrics: BTC Hurdle ARR and Net Bitcoin Per Share. Bitcoin Per Share (BPS) increased by 5%.
The next quarterly filing will show whether the unrealized loss narrows — or widens — depending on where Bitcoin trades. For now, MicroStrategy is doubling down on its bet, debt-light and cash-heavy.
