MicroStrategy Inc. reported a record financial performance in the second quarter of 2025, driven by a massive unrealized gain of $14 billion in its digital assets portfolio. The company, which has increasingly positioned itself as a major Bitcoin investor, holds 628,791 bitcoins as of July 30, with a total acquisition cost of $46.07 billion, averaging $73,277 per bitcoin [1]. This unrealized gain reflects the appreciation in Bitcoin’s fair value during the quarter, contributing to an operating income of approximately $14.03 billion, a 7,106% year-over-year increase [2]. The company reported a net income of $10.02 billion, with diluted earnings per share of $32.60, a dramatic turnaround from the $0.57 loss per share in the same period last year [3].
To further expand its Bitcoin holdings, MicroStrategy announced a capital-raising initiative to issue up to $4.2 billion in Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), with proceeds intended for general corporate purposes, including additional Bitcoin purchases [4]. This follows a recent $2.46 billion acquisition of Bitcoin, which brought the current total to 628,791 BTC [5]. The offering is listed on Nasdaq, and the firm has entered into a sales agreement with major financial institutions, including TD Securities, Barclays Capital, and Morgan Stanley [5].
The company’s CEO, Phong Le, highlighted a 25% year-to-date increase in Bitcoin per Share (BPS) and noted the firm’s intention to revise its full-year targets for BTC Yield and BTC Gain to 30% and $20 billion, respectively [6]. This reflects an aggressive and long-term strategy centered around Bitcoin, supported by a series of capital-raising efforts, including a $2.521 billion STRC IPO completed earlier in the year [6].
MicroStrategy’s Bitcoin-backed securities, including STRK, STRF, and STRD, have also gained traction in the market, raising $584 million, $723 million, and $1 billion, respectively [7]. These offerings demonstrate a growing demand for Bitcoin-linked investments and underscore the company’s role as a key player in the digital asset space.
The Q2 financial results illustrate the increasing influence of Bitcoin on MicroStrategy’s business model. Unlike traditional revenue streams, the company’s performance is now largely shaped by the valuation of its digital asset holdings. However, it is important to note that the reported gains remain unrealized, and actual profits will only materialize upon the sale of Bitcoin. This highlights the inherent volatility of the cryptocurrency market and the speculative nature of MicroStrategy’s current financial position [8].
The firm’s ongoing expansion of its Bitcoin treasury through public offerings and secondary market sales signals a long-term commitment to digital assets. This strategy appears to be resonating with investors, as evidenced by the company’s recent stock price performance and the strong participation in its security offerings [9]. By leveraging its Bitcoin holdings into new capital, MicroStrategy is positioning itself for potential sustained growth in the evolving digital asset landscape.
[1] Strategy. “Strategy Announces Second Quarter 2025 Financial Results.” https://www.strategy.com/press/strategy-announces-second-quarter-2025-financial-results_07-31-2025
[2] The. “Strategy reports record net income in Q2, files $4.2 billion…” https://www.theblock.co/post/365139/strategy-reports-record-net-income-in-q2-files-4-2-billion-strc-offering-to-buy-bitcoin
[3] 24/7. “Live: Strategy (MSTR) Q2 Earnings are ‘Most Important…'” https://247wallst.com/investing/2025/07/31/live-strategy-mstr-q2-earnings-are-most-important-event-in-company-history/
[4] CoinGape. “Strategy Files $4.2 Billion STRC Offering To Buy More Bitcoin.” https://coingape.com/strategy-files-4-2-billion-strc-offering-to-buy-more-bitcoin/
[5] Coindoo. “Michael Saylor’s Firm Eyes Another $4.2B to Boost Bitcoin…” https://coindoo.com/michael-saylors-firm-eyes-another-4-2b-to-boost-bitcoin-holdings/
[8] Investing.com. “Earnings call transcript: MicroStrategy’s Q2 2025 beats…” https://www.investing.com/news/transcripts/earnings-call-transcript-microstrategys-q2-2025-beats-expectations-stock-rises-93CH-4164706
[9] MEXC. “$4.2B STRC Offering Targets Massive Bitcoin Purchase.” https://www.mexc.com/news/strategy-bets-big-4-2b-strc-offering-targets-massive-bitcoin-purchase/63213
