Strategy (MSTR) Stock: Surges as Bitcoin Holdings Reach 843,775 Despite $8.22B Q2 Loss

TLDR

Table of Contents

Strategy shares rose 4.73% despite an $8.22 billion second-quarter net loss.
Bitcoin holdings reached 843,775 as Strategy expanded its treasury in 2026.
Strategy raised $17.06 billion through its capital programs by late July 2026.
The company grew its dollar reserve to $3.75 billion for future obligations.
Strategy repurchased discounted STRC shares while keeping MSTR buybacks open.

Strategy Inc. (MSTR) shares rose 4.73% to $97.74 Thursday, despite the company reporting a major second-quarter loss. The stock later slipped 0.45% to $97.30 after hours following the earnings release. However, stronger capital reserves and expanded bitcoin holdings supported the market response.

Strategy Inc, MSTR

Bitcoin Holdings Expand During Market Decline

Strategy held 843,775 bitcoin as of July 26, marking 25% growth since the year began. The holdings carried a $63.69 billion cost basis and a $54.77 billion market value. The company recorded a large unrealized loss after bitcoin traded below its average purchase price.

The company reported an $8.22 billion net loss, compared with a $10.02 billion profit one year earlier. Meanwhile, operating losses reached $8.33 billion because digital asset values fell during the quarter. Preferred dividends also reduced common shareholder results by $400.7 million during the reporting period.

Still, Strategy achieved a 4.5% bitcoin yield and a 29,997 bitcoin gain during 2026. The company valued that gain at $1.95 billion using bitcoin’s July 27 market price. Strategy also sold $218.4 million of bitcoin to help fund preferred dividend payments.

Capital Raising Strengthens Strategy’s Balance Sheet

Strategy raised $17.06 billion through at-the-market programs during 2026 through July 26. It collected $8.41 billion during the second quarter and another $1.28 billion afterward. Consequently, the company expanded its funding options despite weaker bitcoin prices and heavy accounting losses.

In May, Strategy repurchased $1.50 billion of convertible notes for about $1.38 billion in cash. That transaction reduced outstanding convertible debt from $8.21 billion to $6.71 billion. The company completed the purchase at an estimated 8% discount to face value.

Strategy also established a $1 billion MSTR repurchase program, although it has made no purchases. Management may use the program when shares trade below its view of intrinsic value. Moreover, the company added new measures covering credit costs and net bitcoin per share.

Digital Credit Program Supports Dividend Coverage

Strategy increased its dollar reserve to $3.75 billion by July 26. The reserve covers more than 2.1 years of preferred dividends and interest payments. This buffer supports the company’s credit structure while bitcoin remains below its average acquisition cost.

The company raised $7.53 billion through STRC issuances during 2026, representing 254% growth. It also increased STRC’s dividend rate to 12% to support trading near $100. Strategy plans regular repurchases while STRC remains below its stated value.

Between July 20 and July 26, Strategy repurchased 288,930 STRC shares for $25 million. The purchases represented $28.9 million in stated value and an average price of $86.53. Strategy still has about $975 million available under its digital credit securities program.

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