Strategy Inc released its financial results for the second quarter of 2026 today, confirming its position as the world’s largest institutional holder of Bitcoin. As of July 26, 2026, the company’s treasury holds 843,775 Bitcoin, representing a 25% growth year-to-date and an overall cost basis of $63.69 billion ($75,476 per BTC).
Despite navigating a notable decline in crypto market valuations that resulted in a net loss for the period, Strategy expanded its core treasury metrics, reduced senior debt obligations, and scaled its capital reserves to back its growing suite of Digital Credit preferred instruments.
Q2 Financial Metrics Impacted by Mark-to-Market Accounting
Under updated crypto accounting standards requiring digital assets to be marked to fair value, Strategy reported an operating loss of $8.33 billion for Q2 2026. This compares to an operating income of $14.03 billion in Q2 2025.
The quarter’s performance was driven primarily by an unrealized loss on digital assets of $8.32 billion, contrasting with a $14.05 billion unrealized gain recorded in the prior-year period. Net loss attributable to common stockholders reached $8.62 billion ($24.45 per diluted share), after accounting for $400.7 million in preferred stock dividends.
From an operational standpoint, total software revenues grew 6.9% year-over-year to $122.4 million, up from $114.5 million in Q2 2025. Gross profit reached $81.6 million, delivering a 66.6% gross margin. Total cash, cash equivalents, and short-term investments stood at $2.44 billion as of June 30, 2026.
Balance Sheet De-Risking and Capital Allocation Strategy
Strategy executed several strategic balance sheet maneuvers during and immediately following the second quarter.
In May 2026, the company repurchased $1.50 billion aggregate principal amount of its 0% Convertible Senior Notes due 2029 for $1.38 billion in cash, an 8% discount to par. This reduced total outstanding convertible debt by 18% to $6.71 billion.
Year-to-date, Strategy raised $17.06 billion across its equity and preferred stock at-the-market (ATM) programs. During Q2, gross proceeds reached $8.41 billion, driven primarily by $5.46 billion in STRC preferred stock sales and $2.95 billion in MSTR common stock sales.
The company expanded its USD Reserve to $3.75 billion. Management noted this pool provides over 2.1 years of coverage for upcoming preferred dividend payments and debt interest obligations.
Digital Credit Framework and Stock Repurchase Initiatives
To stabilize trading performance for its high-yield preferred equity instruments, Strategy announced updates to its Digital Credit framework. The dividend rate on its STRC shares was increased to 12.00% annualized ($0.50 per share semi-monthly) to support trading near its $100 liquidation preference.
Between July 20 and July 26, Strategy repurchased 288,930 STRC shares for $25.0 million at an average price of $86.53—reflecting a 13.5% discount to par under its newly authorized $1.0 billion STRC repurchase program.
“Our plan is to return STRC to health with stable demand, high liquidity, and low volatility trading near par,” said Michael Saylor, Founder and Executive Chairman. “We believe this is the best way to create shareholder value over the long term.”
Strategy also reported achieving a 4.5% BTC Yield year-to-date, representing a gross BTC Gain of 29,997 bitcoin ($1.95 billion in dollar-equivalent gain based on a market price of $64,915).
