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Get filing alertsStrategy Inc sells 3,588 BTC at $15K+ loss to fund preferred dividends; Q2 loss $8.3B
Filed July 6, 2026 · Period ending July 6, 2026 · ~1 min read
Key Changes
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Sold 3,588 BTC over seven days (June 29–July 5) for $216M total to fund preferred stock dividends, at average prices of $59,256–$60,773 versus $75,476 cost basis—a loss of ~$15K–$16K per coin.
Item 8.01 — Other Events verify on EDGAR → -
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Recorded $8.32B digital asset loss in Q2 2026 ($8.31B unrealized, $0.9M realized); carrying value fell to $49.67B as of June 30, 2026.
Item 8.01 — Other Events verify on EDGAR → -
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Will record full valuation allowance against deferred tax asset from unrealized loss because bitcoin fair value fell below cost basis at quarter-end, eliminating any tax benefit from the $8.31B unrealized loss.
Item 8.01 — Other Events verify on EDGAR → -
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Holds 843,775 BTC as of July 5 with $63.69B aggregate cost ($75,476 average); USD Reserve at $2.55B with up to $1.25B BTC Monetization Program capacity still available.
Item 8.01 — Other Events verify on EDGAR → -
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CFO Andrew Kang designated principal accounting officer effective June 30, 2026, following retirement of Chief Accounting Officer Jeanine Montgomery—a routine succession previously disclosed.
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation verify on EDGAR →
Summary
Strategy Inc disclosed forced bitcoin sales at a substantial loss to meet preferred dividend obligations. The company sold 3,588 BTC over seven days in late June and early July at an average loss of approximately $15,000–$16,000 per coin below its $75,476 cost basis, generating $216 million to fund preferred stock distributions.
This marks a shift from the company's accumulation strategy to liquidation under financial pressure. The Q2 2026 results show an $8.32 billion loss on digital assets, nearly all unrealized, as bitcoin's market value fell below Strategy's cost basis. The company's bitcoin carrying value dropped to $49.67 billion as of June 30.
Because fair value now sits below cost, Strategy will record a full valuation allowance against the deferred tax asset, meaning it cannot recognize any tax benefit from the $8.31 billion unrealized loss—a double hit to the income statement. Strategy maintains 843,775 BTC with a $2.55 billion USD Reserve for ongoing obligations. The company has authorized up to $1.25 billion in additional bitcoin sales to replenish this reserve, with full capacity still available. Retail holders should monitor whether further sales occur and at what prices, as continued below-cost liquidations would compound losses and signal ongoing cash flow stress from the preferred dividend burden.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Strategy Inc announces a new investor dashboard on its website for disclosing bitcoin holdings, KPIs, and other supplemental information under Regulation FD.
Added in current filing · verify on EDGAR →
Strategy also maintains a dashboard on its website (www.strategy.com) as a disclosure channel for providing broad, non-exclusionary distribution of information regarding Strategy to the public, including information regarding market prices of its outstanding securities, bitcoin purchases and holdings, certain key performance indicator metrics and other supplemental information, and as one means of disclosing non-public information in compliance with its disclosure obligations under Regulation FD.
Strategy Inc has established a public dashboard on its website to disclose information about its bitcoin holdings, purchases, security prices, and key performance metrics. This dashboard serves as a Regulation FD-compliant channel for broad public distribution of material information. Investors are encouraged to regularly review the dashboard for updates.
Event · Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation filed; see Key Changes for terms.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
on June 30, 2026, Jeanine Montgomery, Strategy’s Vice President & Chief Accounting Officer and principal accounting officer, retired from Strategy.
Jeanine Montgomery retired from her role as Vice President & Chief Accounting Officer on June 30, 2026. This was a planned retirement previously disclosed in the company's quarterly report filed in May 2026.
Event · Item 8.01 — Other Events
Strategy sold 3,588 BTC at a loss to fund preferred dividends; Q2 2026 digital asset loss of $8.32 billion triggers full deferred tax valuation allowance.
Added in current filing · verify on EDGAR →
During Period June 29, 2026 to June 30, 2026 BTC Sold | Aggregate Sale Price (in millions) (2) | Average Sale Price(2) | 1,363(1) | $80.8 $59,256 ... During Period July 1, 2026 to July 5, 2026* BTC Sold | Aggregate Sale Price (in millions) (2) | Average Sale Price(2) | 2,225(1) | $135.2 $60,773 ... (1) Proceeds from the bitcoin sales were used to fund payment of distributions on preferred stock and to replenish the portion of the USD reserve used for this purpose.
Strategy sold 3,588 BTC over seven days (1,363 BTC on June 29-30 for $80.8 million at $59,256 average, and 2,225 BTC on July 1-5 for $135.2 million at $60,773 average) to fund preferred stock dividends. These sales generated $216 million total proceeds. The company's average purchase price was $75,476-$75,578, meaning these sales were executed at a substantial loss of approximately $15,000-$16,000 per BTC below cost basis.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 7, 2026 · How we verify