Strategy posts $8.22 billion Q2 unrealized loss as Bitcoin falls below cost basis

Jul 29, 2026

Strategy reported an $8.22 billion unrealized net loss for Q2 2026 as Bitcoin's price fell below its $75,476 average cost basis. The loss has eroded a long-held investor premium, with its stock (MSTR) down 76% in 12 months. In response, the company has redefined its key mNAV metric twice to manage perceptions of its performance.

Strategy's unrealized Bitcoin losses

▪The Q2 2026 loss of $8.22 billion significantly exceeded Wall Street projections of $2.15 billion.
▪Strategy reported an $8.22 billion unrealized net loss for Q2 2026.
▪Strategy holds 843,775 BTC at an average cost basis of $75,476 per coin.
▪Strategy introduced a new metric, BTC Hurdle ARR, setting it at 10.8%, while its reported bitcoin yield for the year was 4.5%.
▪The loss occurred as Bitcoin's price of around $65,000 fell below the company's average cost basis.

mNAV metric redefinitions

▪The company's glossary states that mNAV calculations before July 23, 2026, are not comparable to the current metric.
▪The first mNAV redefinition, called "enterprise value mNAV," added the value of debt and preferred stock into its calculation.
▪Strategy has redefined its multiple-to-Net Asset Value (mNAV) metric twice to keep its value above a 1x multiple.

MSTR stock price decline

▪Goldman Sachs notes tied to Strategy are projected to pay approximately 22 cents on the dollar at maturity.
▪The price of Strategy's stock (MSTR) has declined 38% year-to-date and 76% over the past 12 months.

Investor premium erosion

▪The company's redefined "enterprise value-adjusted" mNAV fell below the 1x threshold in late June 2026.
▪The premium investors paid for Strategy stock relative to its Bitcoin holdings, or basic mNAV, fell from 2x to 0.68x over two years.
▪In July 2024, Strategy's common stock was worth twice the value of its Bitcoin holdings.