Bitcoin News Today: Strategy's Q2 Profit Surges 7,100% on Bitcoin Gains and Fair Value Accounting

Strategy’s CEO Phong Le has labeled the firm the “most misunderstood and undervalued stock” in the market, despite the company posting a record $10 billion in second-quarter profit and a 7,100% year-on-year surge in operating income to $14 billion [1]. The earnings report, issued on Thursday, marked the second quarter in which the firm applied fair value accounting, a method that incorporates unrealized gains from its Bitcoin (BTC) holdings [1].

Despite the strong earnings, Strategy’s shares fell 1.4% in after-hours trading. The firm has amassed 628,791 BTC worth $73.3 billion to date, and its “BTC Yield” metric rose 25% in Q2, with total BTC gains reaching $13 billion—already surpassing its initial annual targets [1]. In response, Strategy has raised its full-year BTC-related goals, aiming for a 30% yield and $20 billion in gains [1].

To support its Bitcoin buying strategy, the firm announced plans to raise another $4.2 billion via a preferred stock offering, to be used to purchase additional BTC. This follows a $2.5 billion raise in July via its Variable Rate Series A Perpetual Stretch Preferred Stock (ticker: STRC), which enabled the purchase of 21,021 BTC [1]. At current prices, the new offering could acquire an additional 36,128 BTC [1].

Le emphasized the firm’s strong positioning within the S&P 500, noting it ranks among the top nine in estimated operating income for 2025 and holds the 96th-largest market cap with one of the lowest profit-to-earnings multiples in the index [1]. He reiterated that Strategy’s core strength lies in its exposure to innovative technology and digital assets, particularly Bitcoin, which he believes is fundamentally undervalued [1].

The earnings call also highlighted a $114 million contribution from the firm’s software division, which includes business intelligence products and subscription services [1]. Strategy’s common stock (MSTR) closed Thursday at $401.86, up 1.73%, but dipped in after-hours trading [1].

Analysts remain divided, with some cautioning that the firm’s reliance on volatile crypto assets exposes it to significant market risk [1]. However, management remains confident in its long-term strategy and ability to deliver consistent returns, citing its deep experience in the digital asset space [1].

The firm’s Q2 performance also contrasts with mixed results across other sectors. For example, Park Hotels & Resorts reported a $2 million net loss, while First Solar expressed optimism about 2025 earnings, driven by strong demand in the U.S. solar sector [2][6].

Source:

[1] Saylor's Strategy swings to quarterly profit amid crypto ... (https://www.aol.com/news/saylors-strategy-swings-quarterly-profit-211319080.html)

[2] First Solar outlines 2025 EPS guidance of $13.5–$16.5 ... (https://seekingalpha.com/news/4476188-first-solar-outlines-2025-eps-guidance-of-13_5-16_5-amid-evolving-tariff-landscape-and-strong)

[6] Park Hotels' Q2 Net Loss: A Misunderstood Turnaround ... (https://www.ainvest.com/news/park-hotels-q2-net-loss-misunderstood-turnaround-opportunity-hospitality-sector-2508/)