#BTC

0-1Strategy (formerly MicroStrategy) has filed with the SEC to raise up to $4.2 billion through an at‑the‑market (ATM) program issuing its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC)  .

532-0This new raising follows a blockbuster IPO earlier in July that generated $2.5 billion of STRC, which was already used to purchase 21,021 BTC  .

📊 Q2 2025 Financial Highlights & Bitcoin Activity

730-0In Q2 2025 (ended June 30), Strategy reported a net income of approximately $10 billion, reversing a prior-year loss. Its operating income surged by 7,100% year-over-year to roughly $14 billion, largely driven by unrealized gains on its Bitcoin holdings  .

1117-0Strategy now holds about 597,325 BTC, acquired at an average of $70,982 per bitcoin, valued at over $64 billion  .

1288-0The firm paused purchases between June 30 and July 6, marking its first such halt in months; this pause came right before initiating the STRC offering  .

🎯 Strategic Rationale & Broader Capital Framework

1477-0Proceeds from the new STRC issuance are expected to support further Bitcoin acquisitions, pay dividends on existing preferred shares, and cover general corporate needs  .

1755-0Michael Saylor and Strategy continue to execute their so‑called “42/42 Plan”, targeting $42 billion via equity and $42 billion via fixed income capital raises by 2027 to fund Bitcoin accumulation  .

⚠️ Risks & Market Implications

2007-0Critics, such as James Chanos, warn that this model hinges on holding stock prices above NAV and constantly accessing capital markets—creating a fragile structure reliant on investor sentiment  .

2275-0Despite minimal revenue from its original software business, Strategy continues using variable‑rate preferred share issuances and convertible debt to fund BTC acquisitions—a controversial approach described by skeptics as akin to a “financial mirage”  .

2564-0CEO Phong Le recently referred to Strategy as “the most misunderstood and undervalued stock,” even as the company lifts its full-year BTC‑yield guidance from 25% to 30% and its BTC‑gain target from $15 billion to $20 billion  .

📌 At a Glance

Highlight Detail

Capital Raise Up to $4.2 billion via STRC preferred stock offering

Recent Use of Funds $2.5 b preferred stock IPO — $2.46 billion used to buy 21,021 BTC

Bitcoin Holdings ~597,325 BTC at average cost of ~$70,982 each

Q2 Financials Operating income ~$14 b; Net income ~$10 b

Broader Strategy “42/42 Plan” targeting $84 b total capital by 2027

Risks Heavy reliance on capital markets, stock overvaluation, potentially unsustainable structure

🧠 Final Take

Michael Saylor’s Strategy is doubling down on its conviction that Bitcoin is a superior corporate treasury asset. The $4.2 billion STRC offering is the latest in a series of aggressive capital raises designed to scale its BTC holdings dramatically. While Q2 results and rising Bitcoin prices support the strategy, its viability depends on continued investor confidence and market access. Any downturn in sentiment or disruption to capital availability may expose structural risk within the model.$BTC