Recommended Free Tools
iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
Strategy’s bitcoin holdings can swing its reported earnings sharply because, since January 1, 2025, the company has recognized changes in bitcoin’s fair value in net income or loss. Those accounting gains and losses are generally unrealized until bitcoin is sold; they are distinct from software operations, cash and liquidity, and Strategy’s company-defined bitcoin-per-share metrics.
How does bitcoin’s accounting affect Strategy’s earnings?
Strategy adopted the accounting standard ASU 2023-08 on January 1, 2025. Under the new method, it measures bitcoin at fair value at each reporting date and records the change in value in net income or loss for that period. The adoption adjustment increased opening retained earnings by $12.7 billion.
A reported fair-value loss is not, by itself, a cash outflow: it reflects a lower measured value for bitcoin the company holds. A gain similarly reflects a higher measured value, not necessarily cash received from a sale. Because Strategy holds a large bitcoin position, price movements can outweigh the effect of its software business in the headline operating result.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minutePC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11The scale of that effect is visible in the periods below. Figures are as reported by Strategy; the Q1 2025 bitcoin price and holdings refer to March 31, while the later quarters are identified by their reporting periods.
#1 Best Overall
- BITCOIN EXCLUSIVE, PHONE VERIFICATION: Bitkey is designed from the ground up exclusively for bitcoin — a dedicated hardware wallet for secure bitcoin storage. Approve transactions with a tap using your phone and NFC. No device screen is required.
- SELF-CUSTODY, NO EXCHANGE OR CUSTODIAN REQUIRED: You hold two of the three keys in the Bitkey system – one on your phone and one on your Bitkey device. The third is stored on Bitkey’s server and cannot move your bitcoin on its own.
- NO SEED PHRASE: Set up and use Bitkey without creating or storing a seed phrase.
- 2-of-3 MULTISIG: Three keys are stored separately across your phone, Bitkey device, and Bitkey’s server. Any two keys are required to move your bitcoin.
- BUILT-IN RECOVERY: Encrypted backup and recovery tools can help you regain access if you lose your phone or Bitkey device. You can also designate a Recovery Contact.
| Period | Reported result and bitcoin effect | Other relevant detail |
|---|---|---|
| Q1 2025 | $5.9 billion unrealized fair-value loss on digital assets | At March 31, Strategy reported 528,185 BTC, a bitcoin market price of $82,445, and average cost of $67,457. |
| Q4 2025 | $17.4 billion operating loss, including a $17.4 billion unrealized digital-asset loss; $12.4 billion net loss | Cash and cash equivalents were $2.3 billion. |
| Q2 2026 | $8.33 billion operating loss, including an $8.32 billion unrealized digital-asset loss; $8.22 billion net loss, or $24.45 per diluted common share | In Q2 2025, Strategy reported $14.03 billion operating income, including a $14.05 billion unrealized bitcoin gain, and $10.02 billion net income. |
The Q2 2025 and Q2 2026 results show how a favorable bitcoin fair-value movement can contribute to income in one quarter and an adverse movement can dominate the result in another. Strategy said in its Q2 2026 release that its earnings are “extremely sensitive to changes in the market price of bitcoin.”
Why comparisons across 2025 can be misleading
ASU 2023-08 changed the way Strategy reports bitcoin value changes. Before adoption, the company used a cost-less-impairment model: a decline that qualified as impairment was recorded, while a later recovery generally did not reverse that impairment in the same way as fair-value accounting. Under the method adopted in 2025, both increases and decreases in fair value flow through the income statement.
Rank #2
- Unparalleled Security: Protect your assets NDA-free EAL 6+ Secure Element, offering robust defense and complete transparency
- Simple & Secure Interface: Manage your digital assets easily with a clear OLED screen for secure on-device confirmations
- Supports 1000s of Coins & Tokens: Securely handle thousands of assets, including Bitcoin, Ethereum, and more, all in one wallet
- Effortless Asset Management: Monitor and transact seamlessly with Trezor Suite, our intuitive desktop and mobile app
- Enhanced Backup Solution: Rest assured with Multi-share Backup, eliminating single points of failure for secure cold wallet recovery
That difference matters when comparing Q4 2025 with Q4 2024. Strategy reported a $17.4 billion unrealized digital-asset loss in Q4 2025, while the $1.0 billion digital-asset impairment loss in Q4 2024 was measured under the prior model. The large change across those periods reflects bitcoin price movement and a change in accounting treatment; the figures are not directly like-for-like measures of an identical accounting process.
How to read Strategy’s balance sheet and bitcoin holdings
The balance sheet contains more than the bitcoin position. For June 30, 2026, Strategy reported $1.71 billion in cash and cash equivalents and $736.1 million in short-term investments. These are balance-sheet figures for that date, separate from the bitcoin holdings snapshot Strategy reported later.
Rank #3
- Unparalleled Security: Protect your assets with EAL 6+ Secure Element, offering robust defense and complete transparency
- Simple & Secure Interface: Manage your digital assets easily with a clear OLED screen for secure on-device confirmations
- Supports 1000s of Coins & Tokens: Securely handle thousands of assets, including Bitcoin, Ethereum, and more, all in one wallet
- Effortless Asset Management: Monitor and transact seamlessly with Trezor Suite, our intuitive desktop and mobile app
- Enhanced Backup Solution: Multi-share Backup eliminates single points of failure for secure cold wallet recovery
Strategy’s bitcoin summary as of July 26, 2026, listed 843,775 BTC, an original cost basis of $63.69 billion, and a market value of $54.77 billion. The market value used a bitcoin price of approximately $64,915 on July 27, 2026. Because the holdings count and price are dated after June 30, they should not be read as June 30 balance-sheet amounts. Original cost basis is what Strategy paid, while market value is an estimate based on the stated price date.
Cash, short-term investments, bitcoin and obligations such as debt and preferred stock answer different balance-sheet questions. The cash and investment amounts describe resources available in those categories; the bitcoin valuation describes a volatile asset position. A bitcoin-per-share figure or bitcoin market value alone does not show the amount attributable to common stockholders after liabilities and senior claims.
Rank #4
- Dual-chip architecture for maximum protection: The next-gen, fully auditable TROPIC01 chip works alongside a certified EAL6+ Secure Element—completely NDA-free—to deliver radically transparent, industry-leading defense against physical attacks.
- Quantum-ready security: Get protection against future threats with the first-ever hardware wallet designed with quantum-ready architecture.
- See every detail with confidence: Our largest high-resolution color touchscreen makes it easy to navigate your assets, review transactions and manage your coins with clarity.
- Wireless freedom with encrypted Bluetooth control: Manage, buy, swap and stake securely using Trezor Suite on desktop or mobile. Qi2-compatible wireless charging keeps your Trezor powered up. No cables required—security meets convenience.
- Works seamlessly with Android, iOS and desktop: Connect wirelessly or via USB-C to your phone or computer. Manage your crypto anywhere with our companion Trezor Suite app.
What Strategy’s bitcoin-per-share metrics do—and do not—measure
Strategy also reports company-defined metrics intended to describe bitcoin holdings relative to assumed diluted shares. They are not substitutes for GAAP earnings, a valuation of common equity, or a measure of liquidity.
Do these 3 things before closing this tab:
1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problems- Bitcoin Per Share: gross bitcoin holdings, expressed in satoshis, divided by assumed diluted shares outstanding.
- BTC Yield: the percentage change in Bitcoin Per Share over a reference period. For interim reporting, Strategy typically uses a year-to-date or other stated reference period; a quarterly figure should not automatically be interpreted as a stand-alone quarter return.
- BTC Gain: the implied change in bitcoin-denominated holdings associated with the Bitcoin Per Share calculation.
- BTC $ Gain: BTC Gain translated into dollars using a specified bitcoin market price.
Strategy cautions that these calculations exclude liabilities and the preferential rights of preferred stockholders to dividends and assets in liquidation. They also rely on assumptions about debt refinancing or conversion that may not occur. As a result, the measures can overstate or understate the bitcoin exposure attributable to common stockholders. BTC Yield is not an investment yield and is not the same as a common shareholder’s return.
Quick Recap
Best Value
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Effortlessly build your crypto portfolio via the all in one Ledger Wallet app: buy, sell, send, receive, swap, stake and more across popular blockchains. 15,000+ coins & tokens in a single dashboard. Keep a close eye on the market. Compare service providers. Track performance. Get timely alerts. Build your portfolio with confidence.
- Enjoy Bluetooth connectivity, iOS access, and hours of battery use with this mobile-first, secure backup signer. Freedom you can depend on.
- Genuine Check: confirm your signer is authentic during setup with the Ledger Wallet app.
- Protect your signer: keep it in mint condition at all times with a bespoke Pod or Case to avoid scratches and everyday wear and tear.
How to interpret an earnings headline
- Separate the components: look for the unrealized digital-asset gain or loss, then distinguish it from software revenue, gross profit and other operating costs. The bitcoin mark can dominate reported earnings without describing software performance by itself.
- Check the accounting period: compare results under the same accounting method, especially across the January 1, 2025 adoption boundary.
- Match each asset figure to its date: quarter-end balance-sheet figures and later bitcoin holdings summaries may refer to different dates and prices.
- Keep liquidity separate from valuation: cash and short-term investments are distinct from bitcoin’s market value, which can change substantially with its price.
- Treat company KPIs as supplemental: BTC Yield and related measures describe a gross bitcoin/share calculation, not earnings, liquidity, or the net position of common shareholders.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
