Strategy posted a $10 billion profit in the second quarter, while its shares fell 1.4% in after-hours trading. CEO Phong Le described Strategy as the “most misunderstood and undervalued stock” during the earnings call.
The company’s operating income increased 7,100% year-on-year (YOY) to $14 billion, according to its earnings statement on Thursday. This marked the second quarter under fair value accounting, which includes unrealized gains from Bitcoin (BTC). At the time of the report, Bitcoin traded at $115,898.
Le said that Strategy’s estimated operating income for 2025 is $34 billion, placing it ninth among S&P 500 companies. He noted that Strategy holds the 96th-largest market cap in the index and one of its lowest profit-to-earnings multiples.
“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 stated.
Strategy’s Position in the S&P 500
The company compared its operating income and market cap with other S&P 500 firms, highlighting its relative undervaluation.
Its software division, which includes business intelligence products and subscriptions, generated $114 million in revenue during the quarter. Meanwhile, its common stock (MSTR) closed at $401.86, up 1.73% on Thursday, before declining 1.4% after hours, per Google Finance.
Strategy has acquired 628,791 BTC valued at $73.3 billion. The company reported a 25% increase in its BTC yield for Q2, a measure that tracks Bitcoin holdings relative to diluted shares outstanding.
Its BTC $ Gain reached $13 billion, already hitting its previous year-end target. Based on these results, Strategy raised its full-year targets to a 30% BTC yield and $20 billion BTC $ Gain.
“Any company that is able to double their targets throughout the course of the year, you would consider that a success,”
Le said.
Strategy to Raise $4.2 Billion for Bitcoin Purchases
Strategy confirmed plans to issue and sell up to $4.2 billion in shares through its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to buy more Bitcoin.
Earlier in July, Strategy raised $2.5 billion from STRC, using it to purchase 21,021 BTC. This was the largest US equity raise of 2025. At current market prices, the new raise could fund the purchase of 36,128 BTC.
The share sale supports Strategy’s 42/42 plan, targeting $84 billion in Bitcoin acquisitions. The plan reflects the company’s approach of increasing its Bitcoin treasury through structured funding.
The firm’s BTC yield and BTC $ Gain metrics remain central to its financial outlook. By meeting and raising these targets, Strategy continues to align its stockholder performance with Bitcoin’s value.
