Bitcoin Trouble: How Strategy's Confusing Moves Cost Billions
Michael Saylor's company Strategy is buying and selling bitcoin in a chaotic month, racking up an $8.32 billion loss as prices tumble.
Image source: CoinDesk
Imagine buying something expensive one day, then selling it for less just days later. That's roughly what a company called Strategy (formerly MicroStrategy, a business famous for holding huge amounts of bitcoin) has been doing — and it's costing them dearly.
Bitcoin (a digital currency that exists only online, with a price that jumps up and down) has been falling. It dropped from around $74,000 in late May to below $58,000 last week. When prices fall like this, it's called a bear market (a period when prices keep going down and investors feel gloomy).
Strategy, led by well-known bitcoin fan Michael Saylor, made a series of confusing moves:
- Sold a tiny 32 bitcoin in late May — which spooked markets and helped push prices down
- Bought 3,657 bitcoin at high prices
- Then sold 3,558 bitcoin on Monday at lower prices
The damage was huge. Strategy reported an $8.32 billion loss on its bitcoin holdings in the second quarter (a three-month period companies use to report earnings).
So why sell at a loss? Experts think Strategy needs cash to protect payments on its preferred stock called STRC. Preferred stock is a special type of company share that pays regular income (called a dividend). STRC currently pays a hefty 12% yield (the yearly return investors earn). Protecting these payments may be the priority — even if it means selling bitcoin cheaply.
The takeaway: A company that built its whole identity around holding bitcoin is now scrambling as prices fall. While its bitcoin and main stock (MSTR) dropped, its high-paying STRC stock is bouncing back — a sign of where management's focus really lies.
This is an AI-generated summary. Read the original article at: https://www.coindesk.com/markets/2026/07/06/one-month-that-shook-the-market-saylor-s-struggles-over-bitcoin-strategy-yields-big-loss