Strategy Posts $8.2 Billion Second-Quarter Loss on $8.3 Billion Unrealized Digital Asset Hit

Strategy posted a second-quarter net loss of $8.2 billion, with the bulk of the damage coming from an $8.3 billion unrealized loss on digital assets. The company’s software business generated $122 million in revenue during the period. Strategy said it reports under a fair value accounting model, which puts gains and losses on digital assets directly into the earnings statement. Between Aug. 3 and Aug. 9, Strategy sold 1,690 bitcoin and raised about $109 million. The company used the proceeds to repurchase STRC preferred shares. In the following week, Strategy did not sell any bitcoin. Instead, it raised $334 million by issuing common stock. Of that total, $52 million was used for preferred dividends, $132 million for repurchases, and $149 million was added to its dollar reserve. As of Aug. 16, Strategy said its dollar reserve stood at $4.8 billion. Management said the cash pile could cover about 2.7 years of debt and dividend payments. Separately, digital asset treasury company Twenty One Capital said that as of June 30, each Class A share corresponded to 12,547 satoshis, down from 12,557 at the end of 2025. The company said it held 43,514 bitcoin worth about $2.8 billion. Its equity market value was about $1.6 billion, implying a bitcoin-holdings valuation of roughly 0.57 times. Twenty One Capital also said 16,116 of its bitcoin were pledged as collateral for $485 million in convertible notes, against about $106 million in cash. (Forbes Digital Assets)