MicroStrategy Reports $14.05 Billion Bitcoin Gain, Stock Surges 40%

MicroStrategy, a company known for its software business, has reported a significant gain of $14.05 billion in unrealized Bitcoin profits during the second quarter of 2025. This achievement has elevated the company to a tier typically reserved for corporate giants such as Amazon and JPMorgan Chase. The dramatic turnaround is attributed to the company's adoption of Accounting Standards Update No. 2023-08, which allows for the recognition of fair value changes in Bitcoin holdings as they occur, rather than only recording impairment losses.

In addition to the substantial gains, MicroStrategy has launched a $4.2 billion STRD preferred stock program. This program aims to acquire additional Bitcoin, further solidifying the company's position in the cryptocurrency market. The company expects to sell the stock over an extended period, taking into account trading price and volume conditions. The net proceeds from this program will be used for general corporate purposes, including additional Bitcoin acquisitions and working capital requirements.

As of July 6, 2025, MicroStrategy held 597,325 bitcoins with an aggregate purchase price of $42.40 billion and an average cost of $70,982 per bitcoin. During the second quarter of 2025, the company acquired 69,140 bitcoins at a total value of $6.77 billion, funded through multiple equity offerings.

MicroStrategy received $6.8 billion in aggregate net proceeds from various financing transactions during the second quarter of 2025. The capital raising included contributions from multiple programs, such as the STRF ATM program, the STRK ATM program, and the STRD registered underwritten offering. The company's 2024 Common ATM program generated $2.4 billion in revenue before its termination, while the new 2025 Common ATM program contributed $2.9 billion.

Despite the significant gains, MicroStrategy faces multiple class-action lawsuits alleging false and misleading statements regarding the profitability and risks of its Bitcoin strategy. The lawsuits center on the company's adoption of ASU 2023-08 accounting standards, claiming that the company failed to explain the potential impact on its financial results adequately. The complaint mentioned the $5.9 billion unrealized loss disclosure in the first quarter of 2025, which triggered an 8% decline in stock price and exposed volatility risks allegedly downplayed by management.

Financial analyst Jeff Walton calculated that MicroStrategy has a 91% chance of S&P 500 inclusion, provided Bitcoin maintains levels above $95,240 through June 30. The company requires cumulative positive earnings across four quarters for eligibility, with the second quarter results heavily dependent on Bitcoin’s fair market value, given three consecutive quarterly losses.

Critics, including short-seller Jim Chanos, have intensified their opposition to MicroStrategy’s business model, calling it “financial gibberish” and noting that the company’s $100 billion market capitalization exceeds its $60 billion in Bitcoin holdings. Chanos advises shorting MSTR stock while buying Bitcoin directly, betting the premium will eventually contract.

MicroStrategy’s shares gained 3,130% since initiating Bitcoin purchases in mid-2020, compared to Bitcoin’s 1,000% gain and the S&P 500’s 115% rise during the same period. The stock advanced 40% in the second quarter, outperforming the S&P’s 11% quarterly gain, while inspiring corporate imitators, like SharpLink Gaming’s Ether strategy.