MSTR Falls 4.56% to $93 as Saylor Diverts Cash From Bitcoin Buys to STRC

Strategy’s stock (NASDAQ: MSTR) fell 4.56% on July 31, closing at $93, a day after the company reported an $8.2 billion net loss for the second quarter of 2026. The selloff coincided with comments from Executive Chairman Michael Saylor indicating that Strategy will no longer put 100% of its raised capital into Bitcoin purchases, with fresh attention now going toward its STRC preferred stock instead.

The Q2 loss was driven largely by unrealized losses on Strategy’s Bitcoin treasury, which the company holds at roughly 843,775 BTC. Under fair-value accounting rules, swings in Bitcoin’s price flow directly through Strategy’s income statement, and a $8.32 billion unrealized hit on the holdings was the single largest factor behind the quarterly loss.

A pivot away from “100% Bitcoin”

For years, Strategy’s playbook has been simple: raise capital through equity and debt, then funnel nearly all of it into Bitcoin. Saylor’s latest remarks mark a notable departure from that formula, with the company now saying it will not commit all newly raised funds to BTC purchases.

Instead, Strategy is directing attention toward STRC, one of its preferred stock instruments, with an effort described as pushing the security toward its par value. That shift suggests management is prioritizing balance-sheet stability and servicing its preferred-stock obligations alongside, rather than instead of, its Bitcoin accumulation strategy.

Wall Street still backs the stock

Despite the sharp quarterly loss and the stock’s decline, analysts at TD Cowen and Benchmark both reiterated buy ratings on Strategy following the results. The two firms cited the company’s cash-management adjustments and the STRC-to-par push as reasons for maintaining confidence in the stock, even as the headline loss figure grabbed attention.

That analyst support stands in contrast to the immediate market reaction, where MSTR shares dropped nearly 4.6% in a single session. The divergence highlights a familiar tension around Strategy: its stock price often reacts to short-term GAAP accounting losses tied to Bitcoin’s volatility, while analysts tend to focus on the company’s longer-term capital structure and its ability to service debt and preferred obligations.

Why it matters

Strategy remains the largest corporate holder of Bitcoin, making any change in its buying behavior a signal watched closely across the market. A move away from deploying 100% of capital into BTC, even a partial one, could mean smaller incremental purchases from one of the market’s most consistent institutional buyers going forward.

For MSTR shareholders, the $8.2 billion quarterly loss is a reminder that the stock’s fortunes are tightly bound to Bitcoin’s price swings through fair-value accounting, even as management now signals it wants to diversify how fresh capital is used. Whether the STRC-focused approach dilutes Strategy’s identity as a pure Bitcoin proxy, or simply strengthens its balance sheet, will likely shape how the market prices the stock in coming quarters.

Read more: Strategy Posts $8.22B Q2 Loss on $8.32B Unrealized BTC Hit, Holds 843,775 BTC

Sources

• coingape.com
• theblock.co