Strategy posted an $8.22 billion second-quarter loss and sold part of its Bitcoin reserve to cover preferred-stock obligations. Michael Saylor is now targeting September to bring the firm's STRC preferred stock back to its $100 par value, backed by a rebuilt cash reserve and a $1 billion buyback program.
Strategy sold part of its Bitcoin reserve to meet preferred-stock obligations after an $8.22 billion second-quarter loss wiped out the $10.02 billion profit the company posted a year earlier. Michael Saylor is now targeting September to bring the firm's STRC preferred stock back to its $100 par value.
A Bitcoin-driven quarterly loss
Almost all of the reversal came from an $8.32 billion loss on Strategy's digital assets, as Bitcoin ended June about 40% below its level at the end of the prior year's second quarter. The company still added to its position through the downturn, growing its holdings 11% to 846,000 BTC.
But it later trimmed its stake to 843,775 BTC after selling coins to cover preferred-stock obligations, and Bitcoin per diluted share slipped to 203,683 satoshis by July 26.
STRC's expanding role in financing Bitcoin purchases
STRC's stated value nearly doubled during the quarter, rising from about $5.3 billion at the end of March to $10.5 billion by June 30. Institutional investor holdings in STRC nearly tripled to $3.1 billion between March 17 and July 1, lifting their share of the stock to 29% from 22%. The stock's effective yield stood at 13.6% in late July, reflecting its 12% dividend rate and a discount to par.
A September benchmark for recovery
STRC shares fell to $74.57 on May 28 before recovering to about $89. The decline followed a dollar reserve that fell to $871 million in late May. Strategy has since rebuilt that reserve to $3.75 billion, extending coverage to 2.1 years.
The company also authorized $1 billion of buybacks, of which it has spent $25 million so far. It is tracking September 8 as an informal benchmark for returning STRC to par. That date reflects the 70 trading days the security took to climb from its $90 offering price to $100 after its July 2025 launch.
Saylor said: "We're keeping track of that date, and we're keeping track of our progress." The comparison does not guarantee another 70-day recovery, and Strategy cannot compel investors to value the stock at $100. Saylor put STRC's market cap at $9.2 billion against $10.5 billion of stated value, a gap of about $1.2 billion.
The 2033 Bitcoin-per-share target
Returning STRC to par would let Strategy resume issuing preferred stock to support a longer-term goal: doubling Bitcoin per diluted MSTR share within seven years, a target that implies roughly 10% annual growth through 2033. Strategy wants annual sales of these securities to equal 10% to 20% of its Bitcoin reserve — based on the roughly $55 billion portfolio cited in its results, that range points to $5.5 billion to $11 billion of issuance a year.
Source: CryptoSlate
Trading involves risk.
Risk Disclaimer
