MicroStrategy Reports Expected Strong Bitcoin Gains, Core Software Revenue Lags
MicroStrategy, the world’s largest corporate holder of Bitcoin (BTC), is projected to report significantly higher unrealized gains for its Q2 2025 earnings, according to Bloomberg analysis.
Bloomberg anticipates the company’s Q2 BTC holdings are behind more than $13 billion in unrealized gains. This substantial increase contrasts sharply with its core software business, forecasted to generate just $112.8 million in revenue, highlighting a widening performance discrepancy.
Substantial Holdings and Recent Gains
MicroStrategy’s significant Bitcoin position continues to drive value. Data from platforms like Bitcoin Treasuries indicates the company held 528,185 BTC as of March 31, valued at over $43.5 billion.
More recently, holdings surged to $56.3 billion, resulting in a $12.8 billion unrealized gain over the preceding three months. These gains are partly attributed to ongoing weekly Bitcoin purchases.
Additional purchases reportedly contributed another $640 million (9%) to total unrealized gains during the relevant period, with reported average acquisition prices around $97,900.
Moving Trend: Companies Adopting Bitcoin Treasuries
In line with Chairman Michael Saylor’s significant Bitcoin investments, numerous companies have followed suit as the cryptocurrency’s price increased. Cointelegraph previously reported that 250 businesses now hold Bitcoin, with 26 specifically announcing BTC treasury strategies in June.
Understanding Unrealized Gains
Unrealized gains represent the increase in the market value of an asset held by a company or investor, before it is sold. These gains reflect potential profits based on current prices but have not yet materialized into cash distribution.
Stock Performance Despite Mixed Financials
Interestingly, amidst the expected financial volatility, MicroStrategy’s stock price has surged more than 170% over the past year on the Nasdaq, according to TradingView data.
However, this momentum saw a slight setback on Tuesday, reported a 6% drop.
“Let me point out that our returns on operations for dilution adjusted shares in Q2 were a Bitcoin yield of 7.8%,” Saylor stated via X.
The Bitcoin yield is defined by MicroStrategy as the percentage change in Bitcoin value relative to the company’s diluted share price.
Ongoing Crypto Acquisition Driven by Debt/Equity
MicroStrategy continues its aggressive Bitcoin procurement drive. Notable recent buys included 4,980 BTC acquired late last month and 245 BTC disclosed a week prior for $26 million.
Further acquisitions in mid-May involved a $75.1 million deal for 705 BTC.
Funding these purchases has involved a strategy of raising capital through debt, equity, and preferred stock. While analysts have pointed out the potential accretive nature of this approach for earnings, concerns regarding shareholder dilution also persist.
The persistent capital influx required to sustain this Bitcoin treasury strategy raises questions among observers about its long-term financial sustainability.
