As bitcoin fell dramatically year-over-year, Strategy swung from a $10 billion profit in the second quarter of 2025 to an $8.2 billion loss this year, the company said Thursday.

Strategy's loss was driven almost entirely by unrealized, paper losses on its bitcoin holdings. The firm grew its BTC holdings by 11% during the quarter, climbing to a peak of 846,000 BTC, before it began selling off some of its assets. The price of bitcoin was more than 40% lower at the end of this year's second quarter when compared to Q2 2025.

The report comes weeks into a strategic shift at the company, which has paused bitcoin purchases for the last five consecutive weeks to prioritize building a large U.S. dollar cash reserve. This came after its STRC preferred stock lost its untethered $100 price target.

So far this year, the company has sold about $218 million of bitcoin YTD to fund preferred stock dividends. The company also said this week it had repurchased 288,930 STRC shares for $25 million under the repurchase program it launched in June.

According to its 8-K filing, Strategy last reported owning 843,775 BTC.

Strategy CEO Phong Le said Thursday during the second quarter the company managed to reduce its convertible debt by 18% to $6.7 billion while increasing the firm's USD Reserve by 12% to $2.4 billion.

In late June, Strategy adopted a formal Digital Credit Capital Framework including plans to build a minimum dollar reserve to cover 12 months of coverage for its preferred stock dividends and interest obligations valued around $1.76 billion at the time. It also authorized a BTC Monetization Program allowing sales of up to $1.25 billion in bitcoin specifically to build or replenish its dollar reserve or fund dividends, when more advantageous than issuing MSTR common equity. 

"Our objective is for STRC to trade over time at $99 to $100. If STRC trades below $100, we intend to repurchase STRC shares in a regular and disciplined manner, scaling our repurchases according to market price and liquidity," Le said. "These repurchases are an attractive use of capital that reduces our future preferred dividend requirements at a discount while allowing independent market demand to establish a healthy and sustainable market."

Strategy's Chief Financial Officer Andrew Kang said the company's USD reserve currently sits at $3.75 billion, enough to cover preferred dividend payments and interest obligations for roughly two years. "We've also built a track record of 18 months of consecutive dividend payments, having never missed a dividend despite the recent deep drawdown in bitcoin price," he added.

After its shares rose about 5% on Thursday, Strategy's stock price remained flat at $97.21 in after-hours trading.