MicroStrategy’s Shares Decline Despite Record Profit as CEO Defends Valuation

COLUMBIA, Md. – MicroStrategy (MSTR) shares fell 1.4% in after-hours trading on Tuesday, even as the company reported a company-record $10 billion profit in its second-quarter results. CEO Phong Le reiterated his view that the stock is the “most misunderstood and undervalued” in the market.

The Arlington, Virginia-based firm, co-founded by Michael Saylor, announced a 7,100% year-on-year jump in operating income, reaching $14 billion during the second quarter, according to its earnings release issued Thursday.

This marked the second consecutive reporting period using fair value accounting, which incorporates unrealized Bitcoin gains. Strategy also announced plans to issue up to $4.2 billion in preferred stock. The proceeds will be used to acquire more Bitcoin, moving closer to its long-term target of holding $84 billion in the cryptocurrency under the “42/42” initiative.

CEO Claims Undervaluation Despite Strong Numbers

During the earnings call, Le stated Strategy’s estimated operating income for 2025 now stands at approximately $34 billion, placing it among the largest income generators in the Standard & Poor’s 500 index. “We’re capitalized on the most innovative technology and asset in the history of mankind, on the other hand, we’re possibly the most misunderstood and undervalued stock in the US and potentially the world,” Le asserted, citing Strategy’s 96th-largest market capitalization and its low price-to-earnings multiple.

We’re capitalized on the most innovative technology and asset in the history of mankind, on the other hand, we’re possibly the most misunderstood and undervalued stock in the US and potentially the world.

Bitcoin Metrics Outperform Targets

Strategy reported it holds 628,791 BTC, valued at approximately $73.3 billion. The company found its “BTC Yield” increased by 25% in the quarter, with its “BTC $ Gain” exceeding $13 billion—already meeting annual targets. These metrics, representing percentage change relative to shares outstanding and the dollar gain from Bitcoin’s appreciation, will be raised for the full year to 30% and $20 billion, respectively.

“Any company that is able to double their targets throughout the course of the year, you would consider that a success,” Le noted, citing their own achievement.

Record Funding Raises

MicroStrategy announced an agreement to sell up to $4.2 billion worth of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), designed for further Bitcoin acquisition. Earlier this month, the firm successfully raised $2.5 billion through a similar offering, purchasing 21,021 BTC and becoming the largest US equity raise thus far in 2025.