Strategy books $8.2 billion second quarter loss on bitcoin price decline
The world’s largest corporate bitcoin holder says it has built a cash reserve covering more than two years of dividend payments after investors questioned its growing stack of preferred securities.
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Summary
- Strategy (MSTR), the largest corporate holder of bitcoin, reported an $8.2 billion second-quarter net loss driven almost entirely by an $8.32 billion unrealized markdown on its bitcoin holdings under fair-value accounting.
- The company now holds 843,775 bitcoin worth about $54.8 billion at current prices versus a $63.7 billion acquisition cost, and has raised $17.06 billion this year through stock offerings while repurchasing $1.5 billion of convertible notes at a discount.
- Strategy has built a $3.75 billion U.S. dollar reserve—enough to cover more than two years of preferred dividends and interest—begun selling some bitcoin under a new monetization program, and is pursuing a “Digital Credit” business and a $1 billion share repurchase authorization.
