Strategy (MSTR), the world's largest corporate bitcoin holder, reported Thursday an $8.2 billion second-quarter net loss after the cryptocurrency's price decline erased billions of dollars from the value of its digital asset holdings.
The quarterly loss was driven almost entirely by an $8.32 billion unrealized markdown on its bitcoin holdings under fair-value accounting.
The company held 843,775 bitcoin as of July 26, up 25% from the start of the year. At current prices, the stash is worth roughly $54.8 billion, compared with an acquisition cost of $63.7 billion.
The report came after a period of growing investor scrutiny on the firm over whether it can sustain an increasingly complex capital structure built around multiple classes of preferred stock, common equity and convertible debt.
Capital Moves and Cash Reserve
- Raised $17.06 billion through at-the-market stock offerings this year
- Repurchased $1.5 billion of convertible notes at an 8% discount
- Expanded its U.S. dollar reserve to $3.75 billion
- Sold about $218.4 million worth of bitcoin under a new BTC Monetization Program
- Established a $1 billion share repurchase program for MSTR common stock, though no shares have been bought back yet
- Repurchased about $25 million of STRC preferred shares at a discount to their stated value
