Record profitability driven by Bitcoin appreciation and capital markets expansion for Strategy in Q2 2025

Overview

Strategy (MicroStrategy) posted record Q2 2025 results, driven by the fair value appreciation of its substantial Bitcoin holdings and aggressive capital markets activity. Earnings reached historic highs, reflecting both Bitcoin price momentum and disciplined accretive capital deployment.

CEO Phong Le highlighted the company’s leadership as the world’s first Bitcoin Treasury Company, with accelerating institutional demand for its securities and innovative preferred stock offerings expanding its capital markets platform: “In the second quarter and into July, Strategy delivered another period of exceptional execution and growth. We expanded our bitcoin holdings to 628,791 bitcoins, raised over $10 billion through our ATM programs and IPOs, and saw growing institutional and retail demand for our securities. STRC, our short duration, high yield credit instrument, which was our largest ever IPO, demonstrates how we amplify our bitcoin holdings through intelligent leverage. Our overall capital raising activities have resulted in our Bitcoin per Share (“BPS”) increasing by 25% year-to-date and as a result we are raising our full year BTC Yield and BTC $ Gain KPI targets to 30% and $20 billion, respectively. These achievements underscore the scale of our Bitcoin treasury strategy and the strength of our capital markets platform. In this release, we are also publishing a capital markets framework, which provides a clear structure for how we intend to raise capital to increase our bitcoin balance sheet and grow long-term shareholder value”.

Q2 2025 vs. Q2 2024:

Total revenue reached to $114.5m (+3% YoY), with software subscription services +69% YoY offsetting declines in product support and consulting.
Operating income rose to $14.03bn (vs. -$200m in Q2 2024), driven by $14.0bn unrealized fair value gain on Bitcoin holdings under new accounting rules.
Net income also grew to $10.02bn (vs. -$103m YoY), with GAAP EPS $32.60, a historic quarterly record.
Gross profit recorded a value of $78.7m (69% margin), slightly down due to lower product support revenue (-16% YoY).
Gross margin was 68.8%, slightly lower due to revenue mix and subscription scaling.
Operating expenses recorded -$13.95bn (net credit), reflecting the unrealized Bitcoin gain recognized under fair value accounting.
Total Bitcoin holdings of the company were 597,325 BTC, at an average cost of $70,982 per BTC. Market value was $64.36bn (at $107,752 per BTC, June 30, 2025).
BTC Yield was 19.7% in Q2 and 25% YTD, exceeding prior full-year targets.
BTC $ Gain was $9.5bn in Q2 and $13.2bn YTD, reflecting price appreciation and accretive share issuances.
Total contract equity raised was $6.8bn in Q2 via common and preferred stock, including STRC, STRD, STRF, and STRK issuances.
Cash & equivalents were $50.1m (+31% vs. Dec 2024), reflecting net financing inflows offset by Bitcoin purchases.
Total assets increased to $64.77bn, dominated by Bitcoin holdings.
Long-term debt was $8.16bn, manageable in context of asset growth and market capitalization.

Strategy projects full-year 2025 operating income of $34bn, net income of $24bn, and diluted EPS of ~$80, assuming a year-end Bitcoin price of $150,000. Management expects to achieve BTC Yield of 30% and BTC $ Gain of $20bn through disciplined capital raising and continued Bitcoin accumulation. While results remain highly sensitive to Bitcoin market volatility, the company’s capital markets expansion and treasury strategy are designed to deliver sustained per-share accretion and long-term shareholder value.

For MicroStrategy (MSTR), the stock saw a mild decline after earnings but strongly rebounded on the first trading day of this week, closing +6.17%, although it remains down roughly -4% over the last five days. Year-to-date, shares are still up nearly 30%, despite the high volatility driven by Bitcoin’s price swings given the company’s large BTC exposure. Technically, the stock trades just below its 50-day SMA ($395.36) and above the 200-day SMA ($344.83), suggesting a consolidation phase between these levels. The RSI (14) at ~45 indicates a recovery from oversold territory, though the stock hasn’t fully regained bullish momentum. The strong bounce on higher volume reflects renewed buyer interest, but short-term direction will depend heavily on Bitcoin’s stability and overall market sentiment.