01—Abstract
Summary
Summary of the 8-K filed July 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Strategy Inc (MSTR) reported in this 8-K filed July 6, 2026 that it made no sales under its at-the-market offering program and no share repurchases during the period June 29 through July 5, 2026.
Bitcoin holdings were 846,000 BTC as of June 30, 2026 and 843,775 BTC as of July 5, 2026, after the company sold 1,363 BTC (June 29-30) and 2,225 BTC (July 1-5). Sale proceeds were used to fund preferred stock distributions and replenish the USD Reserve, which stood at $2.55 billiona as of July 5, 2026. On June 29, 2026, the company announced a BTC Monetization Program allowing bitcoin sales to generate up to $1.25 billion of additional USD Reserve funding, with the full amount still available as of July 5.
For the three months ended June 30, 2026, Strategy recorded an $8.32 billionb loss on digital assets, including $8.31 billion of unrealized loss, and digital asset carrying value of $49.67 billion. The company stated that the cost basis of its bitcoin exceeded fair value as of June 30, 2026, and it will record a valuation allowance offsetting in full its deferred tax benefit and deferred tax asset tied to the unrealized bitcoin loss.
The financial information is unaudited, and KPMG LLP has not audited or reviewed it. The filing also reports that Jeanine Montgomery retired as Vice President & Chief Accounting Officer and principal accounting officer on June 30, 2026, and that Andrew Kang, Chief Financial Officer, was designated principal accounting officer effective the close of business June 30, 2026, with no additional compensation.
02—Key points
Key Highlights
- Bitcoin holdings declined from 846,000 BTC (June 30, 2026) to 843,775 BTC (July 5, 2026) after sales of 1,363 BTC and 2,225 BTC.
- Bitcoin sales for July 1-5, 2026 generated an aggregate sale price of $135.2 million at an average sale price of $60,773 per BTC, net of fees and expenses.
- USD Reserve balance was $2.55 billion as of July 5, 2026, intended to support preferred stock dividends and debt interest.
- A BTC Monetization Program announced June 29, 2026 permits up to $1.25 billion of additional USD Reserve funding through bitcoin sales; the full capacity remained available as of July 5, 2026.
- Q2 2026 loss on digital assets was $8.32 billion, including $8.31 billion unrealized, with digital asset carrying value of $49.67 billion at June 30, 2026.
- Cost basis of bitcoin exceeded fair value at June 30, 2026, so a valuation allowance will fully offset the related deferred tax benefit and deferred tax asset.
- Andrew Kang, CFO, was designated principal accounting officer after Jeanine Montgomery's retirement on June 30, 2026.
03—Questions
Frequently Asked Questions
Did Strategy sell or repurchase any common stock during the period June 29 to July 5, 2026?
No. The company stated it did not sell any shares under its at-the-market offering program and did not purchase any shares under its share repurchase programs during that period.
Why did Strategy sell bitcoin, and how were the proceeds used?
The filing states that bitcoin sale proceeds were used to fund payment of distributions on preferred stock and to replenish the portion of the USD Reserve used for that purpose. The USD Reserve is intended to support preferred stock dividends and interest on outstanding indebtedness.
How large was the reported loss on digital assets and what drove it?
Strategy reported an $8.32 billion loss on digital assets for the three months ended June 30, 2026, including an $8.31 billion unrealized loss and a $0.9 million realized loss. The filing ties unrealized losses to changes in bitcoin's market price relative to its carrying value.
What is the impact on Strategy's tax position?
Because bitcoin's cost basis exceeded fair value as of June 30, 2026, Strategy will record a valuation allowance during the quarter ended June 30, 2026 that offsets in full its deferred tax benefit and deferred tax asset associated with the unrealized bitcoin loss.
Who is the principal accounting officer now, and has the financial information been audited?
Andrew Kang, Executive Vice President & Chief Financial Officer, was designated principal accounting officer effective the close of business on June 30, 2026, following Jeanine Montgomery's retirement. The financial information in the filing was prepared by management and has not been audited or reviewed by KPMG LLP.
04—Continue