Strategy Posts $8.22B Q2 Loss, Bitcoin Holdings Hit 843,775; STRC Buyback Plan Revealed
MSTR sits 18% above its 52-week low of $81.81.
Summary
Strategy reported a massive $8.22B net loss for Q2, driven by an $8.32B unrealized bitcoin impairment, as the crypto market downturn hammered its balance sheet. Despite the loss, the company grew its bitcoin stash to 843,775 coins—an 11% increase—and reduced convertible debt by 18% to $6.7B. Revenue rose 7% in the quarter. Management unveiled a new capital allocation strategy: if the STRC preferred shares trade below $100, the company will repurchase them aggressively, aiming to reduce future dividend costs. The USD Reserve now stands at $3.75B, covering over two years of obligations, and new credit metrics like a 10.8% BTC Hurdle ARR were introduced to highlight financial strength. This follows the 8-K filed earlier today and the Q1 $12.54B loss, underscoring the extreme volatility of Strategy's bitcoin-centric model.
At the time of this announcement, MSTR was trading at $96.62 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: BusinessWire.