Strategy Logs $11.2B Bitcoin Loss and Cuts Cash Reserve to $900M
STRC•Strategy’s 843,706 BTC holding carries an $11.2 billion unrealized loss as Bitcoin trades near $62,560 versus the company’s $75,699 cost basis. Cash fell from $2.25 billion to $900 million after selling 32 coins for $2.5 million to fund $750–800 million in annual preferred dividends.
1. Significant Unrealized Bitcoin Loss
Strategy holds 843,706 BTC acquired at an average cost of $75,699 per coin, valuing the reserve at roughly $52.6 billion versus a $63.8 billion cost basis, generating an $11.2 billion unrealized loss as Bitcoin trades near $62,560.
2. Dividend-Funded Bitcoin Sale and Liquidity
The company sold 32 BTC between May 26 and May 31 at an average price of $77,135 per coin, raising $2.5 million to cover perpetual preferred dividend distributions, and cash reserves have shrunk from $2.25 billion to $900 million.
3. STRC Preferred Equity Under Pressure
STRC perpetual preferred shares carry an 11.5% dividend but trade around $94.60, below the $100 par, raising required yields and creating a potential feedback loop where falling share value increases funding demand.
4. Accounting Charges and Equity Performance
Under fair value accounting rules, a $14.46 billion unrealized loss was recorded in Q1 2026, and the company’s equity has declined sharply, with its stock down approximately 72% from its July 2025 peak.
