Strategy Q2 2026: an $8.2B loss on $122 million of software revenue

Strategy’s second-quarter 2026 net loss was $8.22 billion, or $24.45 per diluted share, on $122.4 million of revenue from its software business. The company’s May 5 results filing gave no quantitative guidance for the quarter, so the only yardstick is the year-ago quarter: net income of $10.02 billion, or $32.60 a share, swung to a loss because bitcoin’s fair-value mark swung from an unrealized gain of $14.05 billion to an unrealized loss of $8.32 billion, per its July 30 filing.

Strategy (NASDAQ: MSTR) describes itself as a bitcoin treasury company: it raises capital through common stock, preferred stock and convertible debt, and uses most of it to buy bitcoin, alongside an enterprise analytics software business. Since adopting fair-value accounting for crypto, every change in bitcoin’s price between quarter-ends runs through the income statement, which is why the headline loss says little about operations and a lot about where bitcoin stood on June 30.

Strategy Q2 2026 results at a glance

	Q2 2026	Q1 2026	Q2 2025
Total revenues	$122.4M	$124.3M	$114.5M
Gross profit	$81.6M	$83.4M	$78.7M
Unrealized loss (gain) on digital assets	$8,315.4M loss	$14,455.5M loss	$14,047.5M gain
Operating income (loss)	$(8,331.0)M	$(14,470.4)M	$14,032.0M
Net income (loss)	$(8,219.6)M	$(12,542.7)M	$10,020.8M
Diluted EPS	$(24.45)	$(38.25)	$32.60
Dividends on preferred stock	$400.7M	$229.5M	$49.1M
Net income (loss) to common stockholders	$(8,620.3)M	$(12,772.2)M	$9,971.7M

Carrying value is what the balance sheet says the bitcoin is worth at quarter-end market price; original cost basis is what the company paid.

Why did Strategy lose $8.2 billion?

Because bitcoin was worth less on June 30 than on March 31. The $8,315.4 million unrealized loss on digital assets is larger than the $8,219.6 million net loss; the gap is mainly a $113.9 million gain on debt extinguishment from repurchasing convertible notes below par, partly offset by the software business’s ~$15.6 million operating loss, about $1.0 million of net interest and other items, and $1.6 million of tax.

Strip out the bitcoin mark and the operating company lost about $15.6 million in the quarter: gross profit of $81.6 million against sales and marketing of $34.1 million, research and development of $23.1 million and general and administrative of $39.9 million (our arithmetic). Income-tax expense was just $1.6 million, against $3.98 billion a year earlier, and the balance sheet’s deferred tax liability was down to $1.4 million at June 30, from $1.93 billion at December 31 — after two quarters of bitcoin losses there was little deferred tax left to release.

Common shareholders also bear the preferred dividends. They rose to $400.7 million from $49.1 million a year earlier, so the net loss attributable to common stockholders was $8.62 billion.

How far below cost is the bitcoin position?

About 22% below cost at June 30 (our arithmetic). The digital-assets table shows roughly 846,000 bitcoin with an original cost basis of $63.94 billion and a carrying value of $49.67 billion — a gap of $14.27 billion. Dividing carrying value by coins held implies a bitcoin price of about $58,714 at the measurement date, against an average purchase price of about $75,578; returning to cost from that mark would take a rise of about 29% (our arithmetic).

The headline of the release uses a later date. As of July 26 it reports 843,775 bitcoin with a cost basis of $63.69 billion and a market value of $54.77 billion, at a $64,915 bitcoin price — a smaller gap because bitcoin had risen since quarter-end. The coin count fell between the two dates: the company says it has sold about $218.4 million of bitcoin year to date under its new BTC Monetization Program to fund preferred dividends, of which the Q2 table shows 1,395 bitcoin sold in the quarter at an average of about $59,663.

How did Strategy fund $6.4 billion of bitcoin purchases?

Mostly with preferred stock. The company bought 85,296 bitcoin for $6.42 billion in the quarter, at an average of about $75,279, using $5.46 billion of net proceeds from STRC preferred and $0.96 billion from class A common ATM sales, per the digital-assets footnote. Gross ATM proceeds in the quarter were $8.41 billion: $5,465.0 million of STRC and $2,946.7 million of MSTR common.

Only $0.96 billion of the common proceeds went into bitcoin; the filing does not say how the rest was used, and we draw no link between the two, but in May the company also repurchased $1.50 billion of its 0% convertible notes due 2029 for about $1.38 billion in cash, cutting convertible notes outstanding to $6.71 billion from $8.21 billion. Cash and short-term investments were $2.45 billion at June 30 (our arithmetic: $1.71 billion of cash plus $736.1 million of short-term investments), consistent with the CEO’s statement that the USD Reserve grew 12% to $2.4 billion in the quarter; by July 26 the company put the reserve at $3.75 billion, which it says covers about 2.1 years of preferred dividends and interest.

The weighted diluted share count was 352.5 million, up from 306.8 million a year earlier. The company’s own per-share KPI fell between May 3 and July 26: year-to-date BTC Yield was 4.5% as of July 26, against 9.4% as of May 3 in the Q1 release. The company stresses that BTC Yield is not a financial performance measure and does not account for senior claims such as preferred stock.

What does the preferred stock cost common shareholders?

More each quarter. Mezzanine-equity preferred stock carried a liquidation preference of $15.46 billion at June 30, up from $8.03 billion at December 31. STRC’s annualized dividend rate rose from 11.00% in January to 11.50% through June and 12.00% from the July 15 record date, and the company says it will hold 12.00% “until STRC demonstrates sustained, healthy trading near $100 per share.” It also began buying STRC back: 288,930 shares for about $25.0 million between July 20 and July 26, at an average of $86.53, a 13.47% discount to the $100 stated amount.

The CEO framed that priority directly in the release: “Our objective is for STRC to trade over time at $99 to $100. If STRC trades below $100, we intend to repurchase STRC shares in a regular and disciplined manner.”

How is the software business doing?

Small and shifting to cloud. Total revenues of $122.4 million grew 6.9%, with subscription services revenue of $62.9 million, up from $40.8 million (about 54%, our arithmetic), while product support fell to $40.2 million from $52.1 million and product licenses to $3.7 million from $7.2 million. Gross margin narrowed to 66.6% from 68.8%; on the income statement, subscription services cost $22.7 million to deliver against $5.6 million for product support, so the mix shift toward cloud weighs on margin (our reading of the cost lines). On an annualized basis the business turns over just under $0.5 billion (our arithmetic), against a bitcoin position carried at $49.67 billion.

What to watch in Q3

• The cost-versus-carrying gap. $14.27 billion at June 30. It is the cleanest read on the position, independent of each quarter’s mark.
• Bitcoin sales. The monetization program now authorizes selling bitcoin to fund dividends, interest, the USD Reserve and buybacks; how much is sold is a change in the model, not in the market.
• The preferred dividend bill, at a 12.00% STRC rate on a larger STRC base, against the $3.75 billion USD Reserve.
• BTC Yield, which fell from 9.4% year to date in May to 4.5% in late July.
• Software subscription growth and whether gross margin stabilizes.

Quick answers

How much did Strategy lose in Q2 2026?

$8.22 billion, or $24.45 per diluted share, against net income of $10.02 billion ($32.60) in Q2 2025. Almost all of it was an $8.32 billion unrealized loss on bitcoin; the net loss attributable to common stockholders, after $400.7 million of preferred dividends, was $8.62 billion.

How much bitcoin does Strategy own?

About 846,000 bitcoin at June 30, 2026, bought for $63.94 billion (about $75,578 each) and carried at $49.67 billion. As of July 26 the company reported 843,775 bitcoin, after selling some to fund preferred dividends.

Did Strategy give guidance for Q2 2026?

No quantitative guidance appears in its Q1 results filing of May 5, 2026, so this piece compares the quarter only with Q1 2026 and Q2 2025.

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Sources and method. Company figures — the statements of operations, the balance sheet, the digital-assets roll-forward and its footnotes, ATM proceeds, the STRC dividend schedule and repurchases, the convertible-note repurchase, the USD Reserve, the BTC Monetization Program, the KPIs and the Le quotation — are Strategy’s own disclosures in Exhibit 99.1 (press release) to the Form 8-K filed 2026-07-30 (accession 0001628280-26-051027) for the quarter ended 2026-06-30, read directly from SEC EDGAR and linked above. The Q1 2026 column and the May 3 BTC Yield come from Exhibit 99.1 to the Form 8-K filed 2026-05-05 (accession 0001050446-26-000024). June 30 bitcoin holdings and cost are from the digital-assets table; the July 26 holdings and the July 27 bitcoin price of $64,915 are the release’s own as-of-date figures. The filing was accepted by EDGAR at 16:00 ET, after the close.

No consensus estimate is included, so this piece makes no claim that the quarter beat or missed expectations; the company filed no quantitative guidance, so the only comparisons are with the prior and year-ago quarters. This piece makes no claim about the share-price reaction.

Our arithmetic, labelled as such: the ~$15.6 million operating loss excluding the digital-asset mark; the ~$1.0 million of net interest and other items; the $14.27 billion and ~22% gap between June 30 cost basis and carrying value; the ~$58,714 implied bitcoin price (carrying value divided by ~846,000 coins); the ~29% rise needed to return to the ~$75,578 average cost; the $2.45 billion of cash plus short-term investments; the ~54% subscription services growth; and the just-under-$0.5 billion annualized revenue. These are approximations built on the disclosed figures, not reported numbers. The interpretation — that the headline loss reflects the bitcoin mark rather than operations, and that the preferred-stock stack is the growing claim on common shareholders — is our analysis, not a company statement, and is not a forecast.

Related: Coinbase Q2 2026, reported the same day, where marks on crypto held for investment drove most of the net loss, and Amazon Q2 2026.

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