🚀 Strategy delivered its strongest quarterly earnings ever in Q2 2025, driven by its huge stash of Bitcoin. The company, now a Bitcoin treasury-focused firm, posted $14.03 billion in operating income—a jaw-dropping 7,106.4% jump from last year’s $200 million operating loss for the same quarter.
📊 According to Strategy’s official statement, this massive turnaround is due to adopting new accounting rules that value crypto assets at fair market price. Net income surged to $10.02 billion, compared to a $102.6 million loss the previous year, with diluted earnings per share soaring to $32.60, beating all past records.
💎 Strategy holds a total of 628,791 BTC, purchased at $46.07 billion. The average Bitcoin cost stands near $73,277, but with today’s market prices, the value of these assets is substantially higher, fueling the company’s remarkable financial growth.
📈 Phong Le, Strategy’s President and CEO, confirmed that these results stem from their aggressive Bitcoin accumulation strategy. “We expanded our Bitcoin holdings, raised over $10 billion through ATM programs and IPOs, and observed increasing institutional and retail demand,” he said.
📊 Strategy’s Bitcoin per Share (BPS) climbed 25% year-to-date, prompting an upgrade of their BTC Yield target from 25% to 30%, and boosting the BTC $ Gain forecast from $15 billion to $20 billion by year-end.
💰 Fair value gains from Bitcoin pushed Q2 operating income to $14 billion, with expectations for $34 billion in operating income and $24 billion in net income for 2025. The firm forecasts $80 EPS, assuming Bitcoin reaches $150,000 by December.
🔍 In Q2 alone, crypto gains reached $9.5 billion with 597,325 BTC valued at $64.4 billion, against a cost basis of $42.4 billion. An additional 31,466 BTC were acquired between July 1 and July 29. The firm recorded a $14 billion fair value gain this quarter compared to a $180 million impairment loss last year under the old accounting system.
💵 Strategy raised more than $10.5 billion in fresh capital through stock sales in Q2 and July, nearly half from its common stock ATM program. The company sold 14.2 million shares between April and June, generating $5.2 billion, plus another 2.4 million shares in July for $1.1 billion. There remains $17 billion worth of shares available under this program.
📈 The firm also leveraged four preferred stock instruments: STRK, STRF, STRD, and STRC, raising hundreds of millions across Q2 and July. The STRD IPO in May pulled in $979.7 million, with an additional $17.9 million from STRD ATM in July. STRC’s July IPO raised $2.5 billion.
💻 Outside of crypto, Strategy’s software business grew 2.7% year-over-year, reporting $114.5 million in Q2 revenue. Subscription services surged 69.5% to $40.8 million. Gross profit stood at $78.7 million, with a 68.8% gross margin. Cash reserves increased to $50.1 million by quarter-end.
🔮 For the rest of 2025, Strategy plans to hit its revised Bitcoin targets through a blend of preferred stock offerings and common stock issuances, guided by mNAV thresholds. This strategy aims to expand Bitcoin holdings without excessive shareholder dilution. The company also emphasized that earnings remain highly sensitive to Bitcoin’s price due to its large crypto holdings and fair value accounting.
📢 Strategy concluded by stating it will only update guidance if legally mandated, maintaining steady expectations amid Bitcoin market fluctuations.
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