Bitcoin News Today: Strategy Stock Falls 1.4% After Record $10 Billion Profit Report

Despite reporting a record $10 billion profit in the second quarter of 2025, Strategy’s stock declined 1.4% in after-hours trading. CEO Phong Le described the stock as the “most misunderstood and undervalued” in the market, highlighting a significant gap between the firm’s financial performance and its market valuation. The company is ninth in estimated operating income among S&P 500 firms but holds only the 96th-largest market cap [1]. This discrepancy underscores the ongoing challenge Strategy faces in being recognized for its underlying financial strength [2].

The profit surge was fueled largely by a 7,100% year-on-year increase in operating income, reaching $14 billion. This growth was driven by the company’s use of fair value accounting, which accounts for unrealized gains on its Bitcoin holdings. Strategy currently holds 628,791 BTC, valued at approximately $73.3 billion, with a 25% increase in BTC yield reported for the quarter [1]. The firm also recorded a $13 billion gain in BTC value, further reinforcing its aggressive Bitcoin-centric strategy [3].

To continue expanding its crypto treasury, Strategy announced a $4.2 billion capital raise through its Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC. The funds will be used to purchase more Bitcoin under its “42/42” plan, aiming to acquire $84 billion worth of the cryptocurrency. This follows a $2.5 billion raise in July, which allowed the purchase of 21,021 BTC. At current prices, the new capital raise could add approximately 36,128 BTC to the company’s balance sheet [1].

Despite modest revenue from its software business—$114 million for the quarter—Strategy remains committed to its Bitcoin strategy. The firm has raised its full-year targets for BTC yield and dollar gain to 30% and $20 billion, respectively. CEO Phong Le emphasized that companies capable of doubling their annual targets are typically viewed as successful in the market [1].

Meanwhile, co-founder Michael Saylor is advocating for a clear legal framework for digital assets in the United States. During Strategy’s earnings call, Saylor stressed the need for a formal crypto taxonomy to differentiate between tokenized securities, digital commodities, and digital assets without issuers. He argued that regulatory clarity is essential for fostering innovation and reducing ambiguity in the industry [1].

This call for clarity aligns with broader industry efforts as the US government prepares to debate the Digital Asset Market Clarity Act in September. Saylor believes the legislation could unlock significant potential for businesses to participate in blockchain-based financial systems. He envisions a future where small businesses can tokenize assets quickly and affordably, further expanding access to on-chain finance [1].

Robinhood, another player in the crypto space, is also pushing into tokenized private market assets, with CEO Vladimir Tenev aiming to make high-value investments more accessible to retail investors. However, these efforts have drawn regulatory scrutiny, including a legal inquiry in Lithuania and criticism from companies such as OpenAI, which denied any connection to Robinhood’s token offerings [1].

As both companies and regulators work to establish clearer rules for digital assets, the broader financial landscape continues to evolve. Strategy’s unique position—driven by its Bitcoin-centric model and aggressive capital-raising strategy—illustrates the growing role of cryptocurrencies in traditional finance, despite the volatility and regulatory challenges that remain. [1]

Sources:

[1] Strategy Stock Slips Despite Impressive Profit Surge, https://coinpaper.com/10294/strategy-stock-slips-despite-impressive-profit-surge