Strategy reported record profits for the second quarter of 2025, which did not prevent its stock from dipping in after-hours trading.
Record Profit for Strategy
Co-founded by Bitcoin advocate Michael Saylor, Strategy announced a staggering 7,100% year-on-year increase in operating income, which hit $14 billion for the quarter. This represents the company's second earnings report under fair value accounting, including unrealized gains on Bitcoin holdings, now valued at $73.3 billion for 628,791 BTC.
Expansion Plans and Bitcoin Buy Strategy
The company also outlined aggressive expansion plans, revealing its intention to raise an additional $4.2 billion via a preferred stock offering. The capital will be used to acquire more Bitcoin as part of Strategy's ambitious '42/42' plan, aimed at eventually amassing $84 billion worth of the cryptocurrency. Earlier this month, the company raised $2.5 billion to fund the purchase of 21,021 BTC.
Financial Performance and Yield Growth
Additionally, the company revised its full-year crypto performance goals upward. Its 'BTC Yield' — a ratio measuring Bitcoin per diluted share — grew 25% in Q2, with Bitcoin dollar gains surpassing $13 billion, prompting an increase in year-end targets to a 30% yield and $20 billion in Bitcoin gains. The software division generated $114 million in revenue during the quarter.
Despite record financial results and ambitious expansion plans, Strategy's stock showed a decline, highlighting the complexities of the investment climate and misunderstandings among investors regarding its valuation.
