Strategy's Bitcoin Holdings Surge 400% to $28 Billion Unrealized Profit

Michael Saylor, the executive chairman of Strategy, has seen the company's Bitcoin holdings surge to an unrealized profit of $28 billion. Strategy, formerly known as MicroStrategy, has transitioned from a tech firm to a cryptocurrency giant, owning nearly 600,000 Bitcoins. This significant profit is a result of the company's aggressive "buy and hold forever" approach to Bitcoin, which has been led by Saylor's unwavering belief in the long-term value of the cryptocurrency.

Strategy's Bitcoin holdings represent approximately 2.8% of all Bitcoin that will ever exist, making it the largest corporate holder of Bitcoin in the world. The company's total investment in Bitcoin surpasses $42 billion, with an average purchase price of around $70,982 per Bitcoin. At current Bitcoin prices, Strategy's holdings are worth between $64.8 billion and $70 billion, delivering over $20 billion in unrealized gains.

Saylor's philosophy is that Bitcoin is the ultimate long-term asset, and he has famously stated that he has "no intention of ever selling" the company's Bitcoin. Instead, he treats it as a perpetual treasury reserve. This strategy has paid off handsomely so far, as the company's average purchase price is well below the current market price, meaning Strategy sits on billions in profits on paper and has enormous upside if Bitcoin continues to appreciate.

Strategy's strategic positioning also involves integrating Bitcoin into its business model. While its legacy software business still generates revenue, Saylor has steered the firm toward Bitcoin-centric innovation. For example, Strategy is developing enterprise Lightning Network solutions, which allow companies to use Bitcoin's Lightning for payments, rewards, and web applications. By leveraging its software expertise in the Bitcoin ecosystem, Strategy aims to monetize its crypto expertise and support Bitcoin adoption, adding yet another layer to its bullish thesis.

The company's use of debt and equity financing to buy Bitcoin means that shareholders are effectively holding a leveraged Bitcoin ETF in disguise. For every 1% move in Bitcoin’s price, Strategy's stock tends to move even more. This high beta effect is a result of the company's financial engineering, which amplifies its exposure to Bitcoin's price movements.

Strategy has managed its finances to support this strategy for the long haul. The company's vast Bitcoin reserve has given it credibility in capital markets to continue raising funds. In 2025, it even launched an ambitious "42/42" plan to potentially raise $84 billion through 2027 for more BTC purchases. Thanks to its Bitcoin war chest, Strategy can now issue preferred shares at an 8% yield, which is attractive to investors in a world of low interest rates. This creative financing not only funds more Bitcoin buys but also validates Bitcoin as collateral, further entrenching Strategy's strategic position.

However, leverage is a double-edged sword. Strategy carries over $2 billion in debt from its bond issuances, and it must manage interest costs and potential dilution from equity issuance. The bullish view is that as Bitcoin’s price climbs, Strategy’s debt-to-asset ratio actually improves, since the value of its BTC assets grows. In fact, after a new accounting rule change in 2025, Strategy began marking its Bitcoin to fair value on financial statements, which instantly added over $12.7 billion to its reported shareholder equity, reflecting the massive appreciation of its holdings. This strengthened balance sheet can reassure creditors and investors that the company’s financial health improves in a Bitcoin bull market.

The investor community’s sentiment toward Strategy is unabashedly bullish, especially among crypto believers. Many view Strategy as the premier "stock proxy" for owning Bitcoin, an asset that combines the upside of Bitcoin with the convenience of a publicly traded security. This enthusiasm is reflected in the stock’s performance, as Strategy shares have consistently outpaced Bitcoin itself in returns over substantial timeframes. Over both the past year and a five-year period, Strategy stock has outperformed the price of Bitcoin, thanks to its leveraged exposure and investor optimism.

Strategy has captured the imagination of investors as not just a company, but a cause. Saylor’s passionate advocacy and relentless Bitcoin evangelism have made him something of a hero to Bitcoin maximalists. This has drawn a dedicated base of shareholders who share the vision and are less likely to sell during dips. Instead, many see owning Strategy as a way to "HODL" Bitcoin through a regulated vehicle, even in retirement accounts or institutions that can’t directly hold crypto. The stock’s trading volume and liquidity have increased as Bitcoin’s popularity soared, and at times Strategy’s market price has traded at a premium to the underlying value of its Bitcoin, a sign of investor confidence in Saylor’s stewardship and in the option value of Strategy possibly finding new ways to leverage its Bitcoin.

Strategy’s singular focus and sheer scale set it apart from other Bitcoin-exposed stocks. Tesla, for example, made headlines by buying Bitcoin in 2021, but after some sales, it holds only about 11,500 BTC, a large sum for a car company, yet trivial next to Strategy’s holdings. More importantly, Tesla’s core business drives its stock, and its Bitcoin is a small side asset. Cryptocurrency miners like Marathon and Riot Blockchain are often seen as Bitcoin-levered stocks, since they hold portions of the Bitcoin they mine. Marathon is the closest to Strategy in BTC holdings, but it still has only a fraction of Strategy’s amount, and mining operations introduce higher ongoing costs and operational risks. Miners must constantly spend on energy and hardware, and many eventually sell some BTC to fund operations, whereas Strategy simply buys and holds, with no pressure to liquidate its treasury. This "pure hodl" approach arguably gives Strategy a cleaner, more predictable exposure to Bitcoin’s price trajectory compared to miners.

Other companies like Block and Coinbase are involved in the crypto industry, but their stock prices hinge on business revenues rather than the value of crypto on their balance sheet. Strategy stands virtually alone as an enterprise software company that pivoted entirely to a Bitcoin play. In doing so, it essentially created a new category: the publicly traded Bitcoin reserve. The only comparable entity is perhaps Grayscale’s Bitcoin Trust, which holds Bitcoin on behalf of investors, but it is a trust, not an operating company, and it has had issues like management fees and trading at a discount to its net asset value. Strategy, on the other hand, gives investors active management and corporate governance, plus the ability for the company to raise capital to buy even more Bitcoin when conditions are favorable. This dynamic has sometimes let Strategy outperform the underlying BTC, essentially leveraging investor sentiment to increase Bitcoin exposure during bull markets.

Finally, Strategy’s leadership in embracing Bitcoin has had a halo effect, inspiring a wave of other firms to put Bitcoin in their treasuries. But none have done it with the all-in zeal of Strategy. This gives Strategy a strategic first-mover advantage. It is the stock synonymous with Bitcoin exposure, often mentioned in the same breath as major crypto ETFs or funds. When Bitcoin rallies, Strategy’s stock surges in tandem, further solidifying its reputation as the bellwether Bitcoin stock.

In conclusion, Strategy represents a compelling and upbeat investment thesis for those who are unabashedly bullish on Bitcoin. It offers unmatched Bitcoin exposure, a proven track record of strategic execution in building its holdings, and a leadership team practically evangelical in their commitment to Bitcoin’s success. Few investments so cleanly align with a single macro trend. If Bitcoin continues to ascend as a global store of value, Strategy’s stock is poised to soar right alongside it, potentially with even greater intensity. For investors seeking a bold way to ride the Bitcoin wave, Strategy has made itself an obvious bet on bullish growth, underpinned by the simple mantra that Saylor and his shareholders live by: "Bitcoin Forever."