Strategy (formerly MicroStrategy), the largest corporate holder of bitcoin, just released its earnings report for Q2 2025, showing $10 billion in net income and $14 billion in operating income, mostly due to Bitcoin.
The Strategy Q2 2025 report has surprised Wall Street. Analysts were expecting a small loss. Instead, Strategy delivered an earnings per share (EPS) of $32.60 vs the expected -$.10.
Revenue was $114.5 million, slightly above estimates.
“This will be the most important event in the history of Strategy,” said Executive Chairman Michael Saylor before the earnings call.
Strategy’s earnings are directly tied to its bitcoin holdings. As of the end of July, the company held 628,791 BTC, valued at around $72 billion, or 3% of all the bitcoin in existence.
In Q2 alone, the company recorded a $14 billion unrealized gain from bitcoin under new fair-value accounting rules. These new rules allow the company to include gains or losses based on the current price of bitcoin, even if they haven’t sold any.
Related: FASB’s New Bitcoin Accounting Rules Now in Effect
The average bitcoin price during the quarter was around $73,277, and by the end of July, it was $118,000.
Strategy also uses these bitcoin metrics:
BTC Yield (percentage increase in bitcoin per share): 25% YTD
BTC $ Gain (unrealized value increase): $13.2 billion YTD
New year-end targets: 30% BTC Yield and $20 billion BTC $ Gain
The company increased its full-year BTC yield target to 30%. It expects $34 billion in operating income and $24 billion in net income for the year — if bitcoin gets to $150,000 by year’s end.
In addition to earnings, Strategy has become a leader in using the capital markets to fund its bitcoin strategy. The company raised over $10 billion through stock offerings during and after the quarter.
Most notably, it launched STRC, a short-duration, high-yield preferred stock that pays a 9% annual dividend.
Investors loved it and the company raised $2.5 billion in the STRC IPO in July. It plans to raise an additional $4.2 billion in the next few months to buy more bitcoin and cover expenses.
Saylor called STRC “the world’s first Treasury Preferred Stock” — designed to deliver high yield and stability while giving investors exposure to bitcoin.
The company also has other capital raising programs under different tickers, STRK, STRF, and STRD, and has raised hundreds of millions more. As of July 29, over $17 billion remains available through these programs.
After the earnings release, Strategy’s stock rose 1.69% after hours to $397.95 and intraday to $404. However, it dropped the next day to under $380. The stock is up 40% YTD and 149% over the last year.
Strategy’s Bitcoin-focused approach is making waves.
CEO Phong Le says the market still doesn’t get the company. “We’re capitalized on the most innovative technology and asset in the history of mankind. We’re possibly the most misunderstood and undervalued stock in the US and potentially the world.”
