The corporate bitcoin holder reported an $8.32 billion unrealized markdown on its crypto holdings, driving the quarterly net loss.
MicroStrategy reported an $8.2 billion net loss for Q2, primarily due to an $8.32 billion unrealized markdown on its bitcoin holdings under fair-value accounting. The company’s bitcoin stash, now at 843,775 tokens, is valued at $54.8 billion, down from an acquisition cost of $63.7 billion.
The loss follows investor scrutiny over the firm’s growing preferred securities and its bitcoin strategy. MicroStrategy has raised $17.06 billion this year through stock offerings while repurchasing $1.5 billion in convertible notes at a discount.
To address liquidity concerns, the company has built a $3.75 billion USD reserve, enough to cover over two years of preferred dividends and interest. It has also begun selling bitcoin under a new monetization program and is pursuing a $1 billion share repurchase plan.