Strategy posted an $8.22 billion net loss for the second quarter of 2026 after an $8.32 billion unrealized hit on its Bitcoin holdings. Michael Saylor now says the company is stepping back from putting all its funds into Bitcoin to instead defend its STRC preferred stock, which has slipped toward the $89 mark.
Bitcoin's price decline pushed Michael Saylor's Strategy into an $8.22 billion net loss for the second quarter of 2026. An $8.32 billion unrealized hit on its Bitcoin holdings drove most of the shortfall. MSTR dropped 4.56% on July 31 to close at $93, a day after the earnings release.
Bitcoin exposure weighs on the balance sheet
Strategy expanded its Bitcoin holdings to 843,775 BTC by late July at an average purchase price near $75,476 per coin. The company also sold roughly $218.4 million worth of Bitcoin under a new monetization plan to help fund preferred stock dividends. It also built a $3.75 billion cash reserve that covers more than two years of dividend and interest payments.
Despite the loss, Strategy's revenue climbed 6.9% to $122.4 million. That is up from $114.5 million in Q2 2025. Gross profit reached $81.6 million, a 66.6% gross margin, compared with $78.7 million a year earlier.
Saylor pulls back from all-in Bitcoin buying
Saylor said Strategy is abandoning its previous model of putting 100% of its funds into Bitcoin and will instead hold both cash and BTC as it works to push its STRC preferred stock back toward $100 par value. Strategy Chief Executive Phong Le has said the company will not buy more Bitcoin until STRC returns to par.
The company also repurchased 288,930 STRC preferred shares for about $25 million, at an average price of $86.53 per share. STRC itself closed at $89 on July 31. MSTR, meanwhile, briefly traded below $90 for the first time since July 1 during the same session.
Analysts trim targets, keep buy ratings on MSTR
MSTR's relative strength index reading of 43 points to bearish momentum. The stock could retest its June 26 low of $81 if support near $90 fails. Still, Benchmark reiterated a buy rating on MSTR while trimming its price target from $570 to $435. H.C. Wainwright kept its own buy rating with a $325 target, pointing to Strategy's growing cash reserve as a sign of balance-sheet strength.
Sources: The Daily Hodl, CoinGape
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