Strategy, the largest corporate holder of Bitcoin, has reported a record $10 billion net income for the second quarter of 2025. Despite the earnings, its stock dipped 1.4% in after-hours trading. However, CEO Phong Le has reiterated that Strategy remains “misunderstood and undervalued” by the market, even as it achieved a 7,106% year-over-year increase in operating income, reaching $14 billion.
Addressing the media during the earnings call, Le emphasized that Strategy now has the ninth-highest operating income among S&P 500 firms, but ranks only 96th by market capitalization. The company’s software division generated $114 million in revenue through product licenses and subscriptions. While Strategy’s common stock (MSTR) closed Thursday up 1.73% at $401.86, Google Finance data showed a post-close dip following the announcement.
Strategy confirmed that it has accumulated 628,791 BTC, valued at $73.3 billion as of June 30. This accounts for nearly 3% of Bitcoin’s total circulating supply. The company attributed much of its quarterly growth to gains from Bitcoin, with its fair value accounting model including unrealized crypto profits.
The firm also disclosed that its Bitcoin yield rose 25% during the second quarter. This metric, defined as the percentage change between Bitcoin holdings and diluted shares outstanding, is one of Strategy’s internal performance indicators. Its “BTC $ Gain” surpassed $13 billion, prompting an upward revision of its full-year targets. New guidance sets the BTC yield target at 30% and the dollar gain at $20 billion.
Executive Chairman Michael Saylor highlighted Strategy’s approach to capital management through engineered financial products like STRC, a preferred stock instrument launched earlier in the year. According to Saylor, STRC balances dividend stability and market price performance while expanding access to Bitcoin investment.
Strategy announced it has entered into a sales agreement to raise up to $4.2 billion through its Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC. The capital will be directed toward purchasing more Bitcoin under its extended “42/42” plan, which targets $84 billion in total BTC holdings.
Earlier in July, Strategy raised $2.5 billion through STRC’s initial offering and used the proceeds to purchase 21,021 BTC. This made it the largest US equity raise of 2025 so far. If market prices hold, the new $4.2 billion raise could secure another 36,128 BTC.
According to its SEC filing, Strategy will pay a 2% commission to partner institutions managing the offering. The STRC instrument pays a variable 9% dividend and debuted on the Nasdaq Global Select Market, reflecting Strategy’s strategy of “intelligent leverage” through equity markets.