Q2 Strategy Financial Report: $8.2 Billion Loss, Mainly from Bitcoin Holdings

BlockBeats News, July 31st

Bitcoin Treasury Company Strategy released its second-quarter financial report, recording an $8.2 billion loss, compared to a $10 billion profit in the same period last year. The loss was mainly due to unrealized mark-to-market losses on its Bitcoin holdings. At the time of writing, Strategy's stock price slightly increased by 0.01% in after-hours trading.

Strategy stated that its Bitcoin holdings increased by 11% in the second quarter, peaking at 846,000 BTC, after which it began selling off some assets. As of the latest disclosure, the company holds 843,775 BTC.

So far this year, Strategy has sold approximately $218 million worth of Bitcoin to pay preferred stock dividends. The company had previously suspended Bitcoin purchases for five consecutive weeks and instead focused on expanding its US dollar cash reserves.

At the end of June, Strategy introduced the Digital Credit Capital Framework, aiming to establish a minimum US dollar reserve covering 12 months of preferred stock dividends and interest payments, and authorized a maximum $1.25 billion Bitcoin liquidation plan to supplement reserves or pay dividends.

CEO Phong Le stated that the company reduced the convertible bond size by 18% to $6.7 billion in the second quarter, while increasing the US dollar reserves by 12% to $2.4 billion. CFO Andrew Kang mentioned that the current US dollar reserve is approximately $3.75 billion, enough to cover related expenses for about two years, and dividends have been paid on time for 18 consecutive months.