Strategy Swings From $14B Profit to $8.2B Loss as Saylor Sells

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Strategy Inc. (Nasdaq: MSTR) posted an $8.22 billion quarterly loss as bitcoin’s price slide erased last year’s $14 billion gain. Regardless, the firm grew its BTC stack 11% to 843,775 coins but kept selling to fund shareholder payouts.

Key Takeaways

Strategy now holds 843,775 BTC, up 11% at the end of Q2, per its latest earnings report.The firm sold 3,588 BTC for $216 million in early July, extending its break from “never sell.”Strategy’s USD reserve hit $3.75 billion after a $544.5 million raise, covering 2.1 years of dividends.

Holdings Grow Even as Sales Continue Image source: Strategy

The firm’s bitcoin per share (BPS) metric, which chairman and co-founder Michael Saylor uses to argue Strategy still compounds value for holders even while selling bitcoin, rose 5% quarter over quarter to 210,824 satoshis. Net debt fell 18%, from $8.2 billion to $6.7 billion, a reduction executives credited to the growth of the company’s digital credit business rather than bitcoin sales alone.

The ‘Never Sell’ Doctrine Collapses

There’s only one company in the world that can sell credit at our scale.

Saylor argued that selling volatility products would introduce counterparty risk, add complexity to Strategy’s capital structure and create tax complications the firm wants to avoid, leaving bitcoin sales and digital credit issuance as its preferred levers instead.

Digital Credit Fills the Gap

Strategy’s digital credit vehicle, STRC, has become central to that approach with its notional value growing from $2.8 billion at the end of 2025 to $10.5 billion by the close of the second quarter. As a result, institutional holders now account for 29% of outstanding STRC, up from 22% a quarter earlier.

The company raised $8.4 billion in total capital during the quarter, including $5.5 billion through digital credit instruments, bringing its year-to-date capital raised to $17 billion (44% of it through digital credit rather than traditional equity sales).

Strategy’s USD reserve, the cash buffer it uses to cover preferred dividends and interest payments, grew 12% during the quarter to $2.4 billion, then jumped further to $3.75 billion after a $544.5 million share sale between July 20 and July 26. That reserve now covers roughly 2.1 years of obligations, within the company’s target range of two to three years and well above its 12-month minimum threshold.

With 843,775 BTC on its books after its latest disposal, Strategy remains the largest institutional holder of bitcoin globally.