MicroStrategy Posts Record $10 Billion Q2 Profit Despite Stock Decline

MicroStrategy shares fell 1.4% in after-hours trading despite posting a company-record $10 billion profit in the second quarter. CEO Phong Le described the Bitcoin-holding company as the "most misunderstood and undervalued stock" in the market.

Operating Income Surges 7,100% Year-Over-Year

MicroStrategy's operating income rose an extraordinary 7,100% year-over-year to $14 billion, according to the company's earnings statement released Thursday. This marked the second reporting period where the firm applied fair value accounting, which includes unrealized gains from Bitcoin.

The software company co-founded by Michael Saylor has transformed into one of the largest corporate Bitcoin holders, fundamentally changing its business model and financial performance metrics.

CEO Calls MicroStrategy Most Misunderstood Stock

During the earnings call, CEO Phong Le highlighted MicroStrategy's unique position in the market. The company's estimated operating income for the 2025 financial year now sits at $34 billion, making it the ninth-largest income generator among S&P 500 companies.

Despite this performance, Le noted that MicroStrategy boasts only the 96th-largest market cap and maintains one of the lowest profit-to-earnings multiples among S&P 500 firms.

"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.

Software Business Maintains Steady Revenue

MicroStrategy's traditional software arm, which includes business intelligence products and subscription services, generated $114 million in revenue during the quarter. This demonstrates the company's ability to maintain its core business while pursuing its Bitcoin strategy.

The company's common stock (MSTR) closed up 1.73% to $401.86 on Thursday before declining 1.4% in after-hours trading.

Bitcoin Holdings Drive Performance Metrics

MicroStrategy has accumulated 628,791 Bitcoin worth $73.3 billion to date. The company reported that its "BTC yield" increased 25% in the second quarter, while its "BTC Dollar Gain" exceeded $13 billion, already reaching end-of-year targets.

BTC yield represents the percentage change ratio between MicroStrategy's Bitcoin holdings and its assumed diluted shares outstanding. The "BTC Dollar Gain" reflects the appreciation in Bitcoin's value measured in US dollars.

Raised Targets for Bitcoin Performance

Based on strong second-quarter results, MicroStrategy increased its full-year "BTC Yield" and "BTC Dollar Gain" targets 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 commented.

$4.2 Billion Fundraising for Additional Bitcoin Purchases

MicroStrategy announced plans to raise $4.2 billion through its preferred stock offerings to purchase more Bitcoin. This initiative supports the company's long-term goal of acquiring $84 billion worth of cryptocurrency under its upgraded "42/42" plan.

The Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) has become one of MicroStrategy's primary investment vehicles for expanding its Bitcoin holdings through what the company calls "intelligent leverage."

Previous Fundraising Success

Earlier in July, MicroStrategy raised $2.5 billion from STRC offerings, which funded the purchase of 21,021 Bitcoin. This represented the largest US equity raise in 2025.

At current market prices, the new $4.2 billion raise could potentially fund the acquisition of approximately 36,128 additional Bitcoin, further expanding the company's cryptocurrency treasury.

Market Position and Future Outlook

MicroStrategy's transformation from a traditional software company to a Bitcoin-focused investment vehicle continues to generate debate among investors and analysts. The company's ability to generate substantial profits through Bitcoin appreciation while maintaining its core software business presents a unique investment proposition.

The significant gap between the company's financial performance and market valuation, as highlighted by CEO Le, suggests potential opportunities for investors who understand the company's Bitcoin-centric strategy.

MicroStrategy's aggressive Bitcoin accumulation strategy positions it as one of the most significant corporate holders of the cryptocurrency, making its performance closely tied to Bitcoin's market movements and long-term adoption trends.

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