MicroStrategy Posts Record Earnings, Attributed Primarily to Bitcoin Gains
Major Financial Surprise
Corporate data analytics firm MicroStrategy (NASDAQ: MSTR), the largest holder of Bitcoin by companies, reported substantial quarterly profits for Q2 2025, driven significantly by gains originating from its massive Bitcoin portfolio.
The company announced $10 billion in net income and $14 billion in operating income for the quarter, figures far exceeding analyst expectations. Prior forecasts anticipated a modest loss, but the company achieved an EPS of $32.60.
The Bitcoin Engine
The core of MicroStrategy’s remarkable performance stems directly from its $72 billion Bitcoin holding, representing approximately 3% of all Bitcoin in existence as of the late July valuation date.
The company’s adoption of fair-value accounting standards resulted in a substantial $14 billion unrealized gain from Bitcoin during Q2 alone. This calculation methodology allows MicroStrategy to record increases (or decreases) in Bitcoin’s market value, irrespective of actual coin sales.
Beyond the Earnings
The average Bitcoin price during the quarter hovered around $73,277, subsequently climbing to approximately $118,000 by late July. MicroStrategy quantifies its Bitcoin performance via specific metrics, including a 25% year-to-date BTC Yield and a $13.2 billion YTD unrealized gain, with ambitious new year-end targets set at 30% yield and a $20 billion gain.
Executive Chairman Michael Saylor heralded the quarter as “the most important event in the history of Strategy.” CEO Phong Le contends the market remains fundamentally misunderstanding the company’s pioneering position.
Capital Raising Spree
In parallel to reporting record earnings, MicroStrategy demonstrated aggressive capital deployment, successfully raising over $10 billion through stock offerings linked directly to its Bitcoin strategy. A notable product of this effort was “STRC,” a high-yield preferred stock offering a 9% annual dividend.
The STRC preferred stock attracted overwhelming investor interest, yielding $2.5 billion in its first issuance since its July introduction. Additional capital raising commitments, involving STRK, STRF, and STRD, are aimed at acquiring more Bitcoin and funding operational costs, with over $17 billion still available under the various programs.
Market Reaction and Future Outlook
Although the stock initially climbed intraday following news of its record earnings, eventually settling at $397.95 after hours, further gains pushed the broader market value significantly higher, contributing to a strong year-to-date performance (+40%) and an astonishing +149% increase over the past year.
Looking ahead, the company projects achieving its full-year targets—$34 billion in operating income and $24 billion in net income—provided Bitcoin reaches the $150,000 threshold before the year concludes.
