Strategy reported an $8.22 billion loss in the second quarter of 2026, swinging from a $10.02 billion profit a year earlier. The hit came almost entirely from an $8.32 billion impairment on its digital assets — mostly Bitcoin. The company now holds 843,775 BTC after selling 3,620 coins to cover preferred stock obligations, down from 846,000 at the end of Q2.
How the numbers broke
Bitcoin per diluted share fell from 210,824 satoshis to 203,683 satoshis by July 26. In the first seven months of 2026, Strategy bought 174,895 BTC and sold just 3,620 — net purchases outpaced sales by 48 times. But the real story is the preferred stock. STRC's stated value nearly doubled in Q2, from $5.3 billion to $10.5 billion. The company raised $7.53 billion through STRC in the first seven months of the year.
STRC's wild ride
STRC shares hit a low of $74.57 on May 28, then recovered to about $89. The effective yield sat at 13.6% in late July, with the stock still trading at a discount to its $100 par value. Institutional holdings of STRC nearly tripled to $3.1 billion — 29% of the total — from $1.1 billion (22%). Retail investors still hold the bulk: $7.4 billion, or 71%.
Cash reserves rebuilt after a scare
Strategy's cash reserve dropped to $871 million in late May — enough to cover six months of dividends and interest. That spooked the market. CEO Phong Le said the experience forced the company to reconsider how it balances Bitcoin purchases with liquidity. By late July, cash had been rebuilt to $3.75 billion, covering 2.1 years of obligations. Strategy also authorized a $1 billion buyback of STRC but has spent only $25 million so far.
Strategy plans to keep the STRC dividend at 12%. Michael Saylor has set a target of September 8 for the stock to return to par — 70 trading days from the May 28 decline. He noted that STRC took the same 70 days to go from $90 to $100 after its IPO in July 2025. Whether the market cooperates this time is the open question.
