Strategy reported an $8.33 billion operating loss for the second quarter as Bitcoin’s roughly 27% decline this year produced a substantial unrealized loss on the company’s digital asset holdings.

Bitcoin was trading near $64,700 following the earnings announcement, compared with approximately $88,400 at the end of 2025.

The company recorded an $8.32 billion unrealized loss on its digital assets during the quarter. A year earlier, Strategy reported a $14.05 billion unrealized gain.

Strategy posted a net loss of $8.22 billion, or $24.45 per diluted common share, compared with net income of $10.02 billion, or $32.60 per share, in the same period last year.

Shares were mostly flat in after hours trading following the results.

Strategy held 843,775 Bitcoin as of July 26, representing a 25% increase in its holdings since the beginning of the year. The Bitcoin had an original cost of $63.69 billion and a market value of $54.77 billion.

Its average purchase price stood at approximately $75,476 per Bitcoin, leaving its holdings valued below their aggregate acquisition cost.

The company reported quarterly revenue of $122.4 million, up 6.9% from $114.5 million a year earlier. Gross profit reached $81.6 million, representing a margin of 66.6%.

Strategy raised $17.06 billion through its capital markets programs during the year and reported a Bitcoin yield of 4.5%.

The company also reduced its convertible debt by 18% to $6.71 billion after repurchasing $1.5 billion of notes at a discount.

Its dollar reserve reached $3.75 billion, providing more than two years of coverage for preferred stock dividends and interest obligations.

Strategy has sold approximately $218.4 million of Bitcoin this year to help fund preferred dividends. It also established separate $1 billion repurchase programs for its common stock and digital credit securities.