Strategy Reports $14 Billion Profit Driven by Bitcoin Surge

Michael Saylor’s company, Strategy, is poised to report a substantial $14 billion profit in the second quarter of 2025. This profit is not derived from software sales but from its extensive Bitcoin holdings, as the price of Bitcoin continues to surge.

Unlike major corporations such as Amazon and banks like JPMorgan, which generate revenue through extensive business operations, Strategy is making headlines due to the recent surge in Bitcoin prices. New accounting rules now allow the company to include the increase in Bitcoin value as part of its earnings, without the need to sell any of its holdings.

Strategy, originally a traditional enterprise software company offering data and analytics solutions, underwent a significant transformation under the leadership of its co-founder and executive chairman, Michael Saylor. In 2020, Saylor began purchasing Bitcoin as a hedge against inflation, a decision that redefined the company. Strategy became known more as a “Bitcoin proxy,” with its value closely tied to its Bitcoin holdings rather than its core business operations.

In the previous quarter, Strategy is expected to earn approximately $112.8 million from software sales. Since 2020, Strategy’s share price has surged over 3,300%, while Bitcoin itself rose about 1,000% during the same period. This dramatic increase in share price is largely attributed to the company’s substantial Bitcoin holdings.

In early 2025, Strategy adopted new accounting rules that allow it to report the value of its Bitcoin at current market prices. Previously, the company treated Bitcoin as an intangible asset, similar to a patent, which resulted in recorded losses when the price of Bitcoin fell. The new accounting rules have enabled Strategy to capitalize on the rising value of its Bitcoin holdings, significantly boosting its reported earnings.

As of March 31, 2025, Strategy held 528,185 Bitcoins, valued at over $43.5 billion. A 30% rise in Bitcoin prices during the second quarter added over $13 billion in value to the company’s holdings. By June 30, 2025, Strategy’s Bitcoin holdings had increased to 597,325 bitcoins, further solidifying its position as a major player in the cryptocurrency market.

Saylor’s strategy has inspired other companies to explore similar approaches, either by adopting Bitcoin or other cryptocurrencies like Ethereum and Solana as treasury assets. However, experts remain cautious, noting that it is still unclear whether these companies will achieve the same level of success as Strategy.