$8.22B Q2 Unrealized Loss as Bitcoin Falls Below Cost Basis, But Holdings Grow 11%
MSTR sits 19% above its 52-week low of $81.81.
Summary
Strategy posted an $8.22B Q2 net loss, driven by an $8.32B unrealized bitcoin impairment as BTC traded below its $75,476 cost basis. The loss massively exceeded the $2.15B consensus estimate. Despite the red ink, bitcoin holdings grew 11% QoQ to 843,775 BTC, now worth $54.64B. The company cut convertible debt 18% to $6.7B and boosted dollar reserves 12% to $2.4B, strengthening its balance sheet. A new 'Bitcoin Hurdle ARR' metric of 10.8% sets the annual BTC appreciation needed to break even on capital raises. Preferred stock buybacks are planned below $100. The stock rose 4.73% on the day, suggesting the market focused on the improved financial position and growing bitcoin stash rather than the accounting loss.
At the time of this announcement, MSTR was trading at $97.75 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $34.3B. The 52-week trading range was $81.81 to $414.36. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Coinpedia.