The largest corporate holder of Bitcoin has established a cash reserve sufficient to cover over two years of dividend payments as investor concerns mount regarding its preferred securities.
By Krisztian Sandor|Edited by Stephen AlpherUpdated Jul 30, 2026, 8:59 p.m. Published Jul 30, 2026, 8:32 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on MicroStrategy Executive Chairman Michael Saylor at the Digital Asset Summit in New York City on March 20, 2025. (Nikhilesh De)SummaryShow- MicroStrategy (MSTR), the foremost corporate holder of bitcoin, announced a staggering $8.2 billion net loss for the second quarter, primarily due to an $8.32 billion unrealized markdown on its bitcoin assets under fair-value accounting.
- The firm currently possesses 843,775 bitcoin, valued at approximately $54.8 billion based on current market prices, contrasted with a $63.7 billion acquisition cost, and has raised $17.06 billion this year through stock offerings while repurchasing $1.5 billion of convertible notes at a discount.
- MicroStrategy has created a $3.75 billion cash reserve—adequate to cover over two years of preferred dividends and interest—has begun selling some bitcoin as part of a new monetization initiative, and is exploring a “Digital Credit” venture along with a $1 billion share buyback plan.
MicroStrategy (MSTR), recognized as the largest corporate holder of Bitcoin BTC$64,714.22, reported on Thursday an $8.2 billion net loss for the second quarter, as the decline in cryptocurrency prices significantly diminished the worth of its digital asset portfolio.
This loss was largely attributed to an unrealized markdown of $8.32 billion on its bitcoin holdings, calculated under fair-value accounting principles.
As of July 26, the company held 843,775 bitcoin, which is a 25% increase from the beginning of the year. At current valuations, this asset is worth about $54.8 billion, compared to an acquisition cost of $63.7 billion.
The disclosure followed increasing scrutiny from investors regarding the firm's ability to maintain a complex capital structure that includes various classes of preferred stock, common equity, and convertible debt.
This year, the company has raised $17.06 billion through stock offerings in the market, repurchased $1.5 billion of convertible notes at an 8% discount, and has expanded its cash reserve to $3.75 billion, which is sufficient to cover more than 2.1 years of preferred dividends and interest obligations.
Chief Financial Officer Andrew Kang stated, "Our USD Reserve currently stands at $3.75 billion, which is enough to cover our existing preferred dividend payments and interest obligations for more than 2.1 years."
Additionally, the firm sold around $218.4 million worth of bitcoin as part of its new BTC Monetization Program to boost cash flow and support preferred stock dividends, marking a shift from its previous strategy of accumulating bitcoin without selling.
Executive Chairman Michael Saylor emphasized that the company remains committed to growing its "Digital Credit" business, despite the current downturn in bitcoin prices. "In the midst of this phase of muted bitcoin sentiment and market skepticism, we continue to evolve our business model and establish Digital Credit as a new asset class," Saylor noted.
MicroStrategy also initiated a $1 billion share repurchase program for its MSTR common stock, although it has yet to buy back any shares. The company has separately repurchased about $25 million of its STRC preferred shares at a discount to their stated value and plans to continue purchasing these securities while they trade below par.
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