Strategy just released its Q2 2026 earnings report, noting an $8.22 billion unrealized net loss as Bitcoin (BTC) traded near $65,000, well below the average cost basis of $75,476. This massively exceeded Wall Street projections of $2.15 billion.
Headwinds during this time included economic downturns, geopolitical conflict, and lower product support revenues. Similar events also contributed to its former (Q1) unrealized loss on BTC of $14.46 billion.
Strategy (top public Bitcoin treasury) earnings report
Despite this unfavorable disclosure, the software company noted that it had expanded its Bitcoin holdings by about 11% quarter-on-quarter. This brought its total holdings to 843,775 bitcoins worth $54.64 billion at current market prices, and it maintained its position as the leader among publicly traded Bitcoin treasuries. Its year-to-date BTC yield also amounted to 4.5%.
Source: CoinMarketCap
Additionally, it reported a gross BTC per share (BPS) value of $131.97, representing a 5% increase from the previous quarter. Debt obligations brought the net BTC per share value to $93.23. Earnings per share (EPS) were -24.45, missing the estimated $0.79.
Notably, Strategy’s pause in Bitcoin purchases to focus on optimizing its balance sheet paid off, with convertible debt down 18% to $6.7 billion. In addition to reducing its debt burden, the move also prevented future stock dilution from notes converted into stock. Debt cuts also proved the company had strong cash generation, which was further validated by its 12% increase in dollar reserves to $2.4 billion.
Historically, the firm preferred to keep its fiat balances to a minimum, but recent volatility altered this mantra. Holding cash enabled it to not only manage debt but also cushion itself from potential economic shocks while maintaining opportunistic Bitcoin purchasing power.
Future plans
Strategy leadership noted its newly introduced financial transparency metric, dubbed the “Bitcoin Hurdle ARR (Annual Return Rate)”. This parameter measures the annual growth rate Bitcoin must achieve for the company to break even on its aggressive capital procurement activities. At present, the metric reads 10.8%, meaning an annual appreciation of BTC by this amount gives shareholders maximum Sats-per-share premiums.
Source: Strategy
Secondly, Strategy intends to perform open-market preferred stock (STRC) repurchases when it trades below $100. This will boost its $3.75 billion cash reserve, cover lower dividend and interest rate payouts for 2 years, and amplify investor net BPS.
Stock reaction post-earnings
Strategy’s Class A Common Stock (MSTR) closed at $97.74, up 4.73% in the day, while its STRC closed at $89.50, up 2.27% in the day.
Source: MarketWatch
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