Strategy Inc (NASDAQ:MSTR) posted a net loss of $24.45 per share for the quarter ended June 30, compared with earnings of $32.60 per share in the same quarter a year earlier. The swing into a sizable loss was driven by unrealized losses tied to the company’s bitcoin holdings, while revenue increased 6.9% year-on-year to $122.4 million, matching analyst expectations.
The company recorded an operating loss of $8.33 billion for the quarter, which included an unrealized loss of $8.32 billion on its digital assets. By contrast, Strategy reported an unrealized gain of $14.05 billion in the second quarter of 2025. Strategy held approximately 846,000 bitcoins at the end of the quarter, with that position valued at $54.77 billion using a bitcoin price of $64,915 as of July 27. Following the results, shares declined by 0.76%.
Company leadership framed the quarter as one of balance-sheet strengthening amid a notable bitcoin price decline. In a statement, Phong Le, President and Chief Executive Officer, said the firm expanded bitcoin holdings by 11% to 846,000 bitcoin, reduced convertible debt by 18% to $6.7 billion, increased the USD Reserve by 12% to $2.4 billion, and grew Bitcoin Per Share by 5%.
Strategy raised $8.41 billion in gross proceeds during the quarter via its at-the-market offering programs. That total comprised $5.47 billion from STRC preferred stock sales and $2.95 billion from MSTR common stock sales. The company also repurchased $1.50 billion of its convertible notes due 2029 at an 8% discount to par.
As of July 26, Strategy reported a USD Reserve of $3.75 billion, representing roughly 2.1 years of coverage for preferred dividend payments and interest obligations. The company increased the STRC dividend rate to 12% and established a $1.0 billion repurchase program for its Digital Credit Securities. Through July 26, Strategy repurchased $28.9 million of STRC at a 13% discount to par.
Contextual note: The company’s revenue met expectations, but large unrealized losses tied to digital asset valuations drove reported operating and net losses for the quarter. Management emphasized moves to increase liquidity, reduce indebtedness, and expand bitcoin holdings despite the market decline.