Crypto treasury companies reported roughly $10 billion in combined second-quarter net losses and more than $30 billion for the first half of the year, largely because accounting rules forced them to mark down digital-asset holdings as prices fell. The results expose how closely the sector’s reported earnings now track cryptocurrency volatility, even as several companies continued raising capital and increasing their token reserves.
Strategy accounted for most of the quarterly losses. The company reported an $8.22 billion Q2 net loss, including an $8.32 billion fair-value adjustment on its Bitcoin holdings. Strive reported a $258 million net loss, attributing more than 90% of that figure to declines in the value of Bitcoin and STRC preferred shares on its balance sheet.
The figures show how digital-asset treasury companies have evolved from operating businesses with cryptocurrency exposure into vehicles whose financial statements are dominated by the value of their coin holdings, financing structures, and share premiums. A decline in Bitcoin or Ether can produce a large accounting loss without requiring a company to sell its assets, but it can also narrow the valuation premium that makes further share issuance attractive.
Fair-value rules drive reported losses
Sharplink reported a $394 million quarterly net loss, while Japan’s Metaplanet disclosed a first-half net loss of 182.8 billion yen, or about $1.15 billion. Metaplanet said around $430 million of that loss came during the second quarter.
BitMine, whose fiscal year ends in August, reported an $83.6 million loss for the March-to-May quarter. Its net loss for the previous nine months exceeded $9 billion, according to its financial results.
Under fair-value accounting, companies must reflect changes in the market value of their cryptocurrency holdings in earnings. That approach can create sharp losses during price declines and gains during rallies, making quarterly net income a less useful measure of whether a treasury company has sold tokens, raised fresh capital, or expanded its holdings per share.
Equity markets appeared to focus more on funding capacity and underlying crypto exposure than on the headline losses. Strategy shares closed 4.73% higher after its results, below the roughly 8% two-way move implied by options pricing. From late-June lows, BitMine rose about 36% and Sharplink gained about 37%, while Strategy and Strive rose more than 10% and Metaplanet advanced about 15%.
Financing remains central to treasury expansion
Strategy raised $8.4 billion during the quarter, exceeding the amount it raised in any single quarter last year, according to the company. It also repurchased $1.5 billion of convertible notes in May at 92% of par value, cutting its convertible debt balance from $8.2 billion to $6.7 billion.
The company said its dollar reserves had reached $3.75 billion, enough to cover 2.1 years of preferred dividends and interest payments. The larger cash balance gives Strategy more room to service financing costs without immediately selling Bitcoin or returning to equity markets during a period of weak share prices.
Sharplink pursued a different capital strategy in June, completing a $75 million private placement above net asset value and repurchasing its own shares at an average price of $4.70. The ability to issue stock above the value of the assets it holds can be valuable for treasury companies: every dollar raised at a premium can add more crypto exposure per existing share than an issuance completed at a discount.
That calculation has become more difficult as market premiums compress. Strategy’s enterprise-value multiple to net asset value, often called mNAV, fell below 1x at one point in June. Sharplink’s market capitalization remained below the value of its Ether holdings, while Metaplanet cited pressure from a discount to net asset value as it slowed financing activity.
Per-share holdings become a core metric
Several companies have shifted their public reporting toward cryptocurrency held per share, rather than the absolute size of their token reserves. Strategy said its Bitcoin per share increased 5% quarter over quarter. Metaplanet reported that fully diluted Bitcoin holdings per 1,000 shares rose 9.6% in the first half.
The metric matters because treasury companies can increase their total Bitcoin or Ether reserves while reducing each shareholder’s proportional exposure if they issue enough new stock. A company trading below the value of its digital assets faces the opposite problem: issuing discounted equity to buy more tokens can dilute the existing claim on those assets.
Metaplanet has formalized that approach through a capital-allocation policy tied to mNAV. The company said it issues shares to acquire crypto when mNAV exceeds 1x and pauses issuance below that threshold. During the second quarter, Metaplanet said mNAV fell below 1x, prompting it to reject a third-party private placement and slow the growth of its Bitcoin holdings rather than raise equity at a discount.
By mid-August, Metaplanet had accumulated about 43,000 Bitcoin worth roughly $2.7 billion based on the valuation cited by the company. Simon Gerovich, Metaplanet’s president, also said a transfer of 5,000 Bitcoin was part of routine security checks involving the company’s custody arrangements, responding to speculation around the movement.
Preferred shares add leverage and fixed obligations
Preferred-share offerings have become a major funding tool for several treasury firms. Strategy’s STRC perpetual preferred structure has a $100 par value and a dividend that adjusts monthly. The stated model is to offer an annualized dividend around 12% and invest the proceeds in Bitcoin.
The notional size of STRC rose from $2.8 billion at the start of the year to $10.5 billion by the end of the second quarter, according to the figures provided. Institutional holdings rose from $1.1 billion to $3.1 billion, lifting the institutional share of the instrument to 29%.
Strive introduced SATA, a preferred security with a 13% dividend rate, and began paying dividends each business day on June 16. By early August, the company said it had made 44 consecutive daily payments while SATA traded near par and the company had cleared its debt.
BitMine issued BMNP, a perpetual preferred share paying a 9.5% dividend, raising $274 million. Metaplanet issued 21.2 billion yen of MERCURY preferred shares and later outlined a domestic bond plan called BitBonds with an annual interest rate above 4%.
These structures can help companies acquire crypto without immediately issuing common shares, but they also add fixed dividend or interest commitments. Treasury firms increasingly need their crypto holdings, cash reserves, and market valuation to support both asset accumulation and obligations to preferred shareholders and lenders.
Sharplink has chosen a less debt-oriented approach. The company said it had staked nearly all of its roughly 890,000 Ether to earn native network yield and disclosed a $125 million capital commitment to an on-chain yield fund arrangement with Galaxy.
Large institutional holders have also increased exposure to some of the sector’s biggest names. Regulatory filings showed 13 of Strategy’s 15 largest holders added positions in the first quarter, totaling $4.6 billion of additional exposure. Capital International increased its Strategy position by $1.92 billion, while Sharplink’s institutional ownership rose from 6% to 46% over one year, according to the reported ownership data.
The sector’s next challenge is less about whether companies can report large paper losses during crypto drawdowns. It is whether they can continue increasing digital assets per share while valuation premiums, preferred-dividend costs, and debt-service requirements impose tighter limits on the financing model that built their reserves.
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