# Strategy (MSTR) Q2 2026 earnings

Results filed 2026-07-30 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/mstr/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1050446/000162828026051027/0001628280-26-051027-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Strategy reported a second quarter 2026 net loss of $8.22 billion, or $24.45 per diluted share, on total revenues of $122.4 million, and holds 843,775 bitcoin.

Strategy's bitcoin holdings grew in the second quarter of 2026, but the price of bitcoin fell. That produced an unrealized loss on digital assets of $8.32 billion and a net loss of $8.22 billion, or $24.45 per diluted share. Software revenue was $122.4 million, up 6.9% from a year ago, with a 66.6% gross margin. Strategy raised $8.41 billion through its at-the-market programs, mostly from STRC preferred stock. It also repurchased $1.50 billion of convertible notes at about an 8% discount to par.
Management gave no revenue or earnings guidance. It is focused on bringing STRC back toward its $100 stated amount, raising the dividend rate to 12.00% and repurchasing STRC below par. The $3.75 billion USD Reserve covers more than 2.1 years of preferred dividends and interest. The main tension is that Strategy has to keep paying these dividends and interest while bitcoin prices stay weak. The 10.8% BTC Hurdle ARR is the yield bitcoin must beat for common shareholders to benefit.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $122.4 million | a 6.9% increase year-over-year | GAAP |
| Net loss | $8.22 billion | compared with net income of $10.02 billion a year ago | GAAP |
| Diluted net loss per common share | $24.45 | compared with net income of $32.60 per diluted share a year ago | GAAP |
| Gross margin | 66.6% | compared with 68.8% a year ago | GAAP |
| Operating loss | $8.33 billion | compared with $14.03 billion operating income a year ago | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Bitcoin holdings | 843,775 bitcoin | 25% growth year to date 2026 |
| BTC Yield (year to date) | 4.5% |  |
| STRC capital raised (year to date) | $7.53 billion | 254% growth |
| USD Reserve | $3.75 billion | over 2.1 years of coverage |
| BTC Hurdle ARR | 10.8% |  |
| Subscription services revenue | 62,858 | up from 40,824 a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| STRC annualized dividend rate | until STRC demonstrates sustained, healthy trading near $100 per share | 12.00% |
| Target trading range for STRC | over time | $99 to $100 |

## Key takeaways

1. **Bitcoin price drop drove an $8.22 billion net loss** Operating loss was $8.33 billion, including an unrealized loss on digital assets of $8.32 billion. Net loss was $24.45 per diluted common share, against net income of $32.60 a year ago.
2. **Holdings grew even as bitcoin fell** Strategy held 843,775 bitcoin as of July 26, 2026, with a 4.5% BTC Yield year to date. Average cost per bitcoin was approximately $75,476 against a market price of approximately $64,915.
3. **STRC preferred stock is now the main funding source** Of $8.41 billion in second quarter ATM proceeds, $5,465.0 million came from STRC. Preferred dividends were $400.7 million in the quarter.
4. **Convertible debt reduced at a discount** Strategy repurchased $1.50 billion of 0% Convertible Senior Notes due 2029 for approximately $1.38 billion in cash. Convertible notes outstanding fell from $8.21 billion to $6.71 billion.
5. **STRC repurchases and a 12.00% rate defend par** Strategy repurchased 288,930 shares of STRC at an average price of $86.53 per share and raised the dividend rate to 12.00%. Approximately $975.00 million remains under the $1.0 billion repurchase program.

## Questions

**What were Strategy's headline results for Q2 2026?** Strategy reported a net loss of $8.22 billion, or $24.45 per diluted share, compared with net income of $10.02 billion a year ago. Total revenues were $122.4 million, up 6.9% year over year.
**Why did Strategy report a large loss?** Operating loss of $8.33 billion included an unrealized loss on digital assets of $8.32 billion, because bitcoin's market price declined during the quarter. A year earlier it recorded a $14.05 billion unrealized gain.
**How much bitcoin does Strategy hold, and what is it worth?** As of July 26, 2026 it held approximately 843,775 bitcoin, with an original cost basis of $63.69 billion and a market value of $54.77 billion. The average cost per bitcoin was approximately $75,476.
**Can Strategy cover its preferred dividends and interest?** Management says its USD Reserve of $3.75 billion covers more than 2.1 years of preferred dividends and interest. It has paid dividends for 18 consecutive months and has sold approximately $218.4 million of bitcoin year to date to fund a portion of them.
**Did Strategy give financial guidance for the next quarter?** It gave no revenue or earnings guidance. It said it will keep STRC's dividend rate at 12.00% until the stock trades near $100 per share, and it will repurchase STRC while it trades below $100.