Strategy (MSTR) Stock Drops 4.5% Following $8.3B Digital Asset Loss and Bitcoin Liquidation

TLDR

• Strategy disclosed an $8.32 billion quarterly loss on its digital asset portfolio for Q2 2026
• A total of 3,588 Bitcoin were liquidated — 1,363 BTC sold June 29–30 and 2,225 BTC sold July 1–5
• Sales occurred below the company’s average acquisition cost of $75,476 per Bitcoin
• MSTR shares declined as much as 4.5% to $96.29 following the disclosure
• Sale proceeds were allocated toward preferred stock dividend payments and bolstering the company’s cash reserves, which reached $2.55 billion by Sunday

Strategy (MSTR) shares tumbled up to 4.5% to $96.29 on Monday morning following the company’s disclosure of an $8.32 billion digital asset loss during its second quarter, alongside confirmation of recent Bitcoin liquidations.

Strategy Inc, MSTR

Shares had rallied 7.9% at Thursday’s close. On Sunday, Chairman Michael Saylor shared a social media post displaying the company’s Bitcoin acquisition timeline, temporarily boosting investor sentiment before the regulatory filing was released.

MSTR was changing hands near $99.81, down 0.9%, prior to the full loss announcement. By Friday’s closing bell, the stock had surrendered approximately one-third of its value year-to-date in 2026.

Bitcoin (BTCUSD) declined 1.34% on Monday. The digital currency has retreated roughly 30% from its April 2025 highs.

Strategy liquidated 1,363 Bitcoin during the June 29–30 period at an average sale price of $59,256 per coin, generating $80.8 million. Subsequently, another 2,225 Bitcoin were sold between July 1 and July 5 at an average price of $60,773, yielding $135.2 million.

In total, 3,588 Bitcoin were offloaded within seven days, all transacted below the firm’s average purchase price of $75,476 per unit.

Strategy currently maintains a position of 843,775 Bitcoin, originally acquired at an average cost of approximately $75,476 each.

Why Strategy Sold

According to the company, revenue from the Bitcoin liquidations was designated for funding preferred stock distributions and replenishing its United States dollar cash position.

Strategy keeps this USD reserve to service preferred stock dividends and interest obligations on existing debt. The reserve balance stood at $2.55 billion as of Sunday.

These sales followed a comprehensive financial restructuring initiative that Strategy unveiled on June 29, designed to shore up business stability and restore investor confidence.

Market Reaction

Coinbase Global (COIN) edged down 0.4% on Monday, whereas Robinhood Markets (HOOD) climbed 2.1%.

The Q2 impairment of $8.32 billion represents one of the company’s most substantial digital asset write-downs on record. The loss stems directly from disposing of Bitcoin at prices below original acquisition costs.

Strategy’s USD cash reserve totaled $2.55 billion as of Sunday, July 6.

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