Strategy Reports Wider-Than-Expected Q2 Loss Amid Bitcoin Volatility
Strategy (NASDAQ:MSTR) reported a wider-than-expected second-quarter loss of $8.22 billion, driven primarily by an $8.32 billion unrealized loss on its Bitcoin holdings due to declining prices during the quarter. The company's shares fell 7% in pre-market trading following the announcement. Despite the significant net loss compared to last year’s profit, Strategy noted a 6.9% increase in revenue and highlighted growth in its Bitcoin portfolio and capital markets activities. As of July 26, Strategy held 843,775 Bitcoin, reflecting 25% annual growth. The company also raised $17.06 billion through at-the-market equity programs and issued $7.53 billion worth of preferred stock to build its USD Reserve up to $3.75 billion. CEO Phong Le emphasized the strengthening balance sheet amid a challenging Bitcoin market, while CFO Andrew Kang introduced new financial metrics for greater transparency. Founder Michael Saylor stated that Strategy is continuing to develop its digital credit strategy despite muted sentiment around Bitcoin and skepticism in the broader market.
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