Strategy Earnings Collapse From Record Profit to Multi-Billion Dollar Loss
During the second quarter of 2026, Strategy recorded an $8.220 billion loss following its accounting adjustment due to Bitcoin’s decline. During the earnings call, Chief Financial Officer Andrew Kang introduced the BTC Hurdle ARR, established at 10.8% to reflect the company’s effective cost of credit.
Strategy announces Q2 2026 results:
– Increased $BTC Holdings by 11%
– Reduced Convertible Debt by 18%
– Increased USD Reserve by 12%
– Increased BPS by 5%https://t.co/2hQp4Rvhji- Michael Saylor (@saylor) July 30, 2026
This new metric aims to measure whether Bitcoin yield exceeds the cost of issued capital. Currently, the annualized yield on its reserves stands at 4.5%, falling below the target threshold. The gap is driven by an increase in preferred stock dividends and debt issuance, which puts pressure on yield per share amid high market volatility.
Despite the paper losses, Executive Chairman Michael Saylor described the period as a transition phase toward new digital credit instruments. With a $3.750 billion cash reserve providing two years of financial coverage, market attention centers on whether the company can reverse this negative spread.
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