Imagine sitting down for coffee, and someone tells you they just made ten billion dollars in three months. You’d probably spill your latte. That’s the kind of quarter Strategy, the company known for its massive Bitcoin holdings, just reported. They didn’t just have a good quarter; they had a record-setting one, thanks in large part to Bitcoin’s climb.
- Strategy reported a record-setting quarter with a net income of $10.02 billion, largely due to Bitcoin’s performance. This resulted in earnings of $32.60 per share.
- The company’s operating income surged over 7,000% due to unrealized gains on their digital assets, specifically Bitcoin. This shift was also influenced by a change in accounting methods.
- Strategy is actively pursuing new financial tools, such as STRC offerings, to raise capital and further increase its Bitcoin holdings. They are also aiming for ambitious Bitcoin yield targets.
The numbers are almost hard to grasp. Strategy announced a net income of $10.02 billion for the second quarter of 2025. That works out to $32.60 per share. Compare that to a loss of $0.57 per share a year ago. It’s a turnaround that makes heads spin.
Operating income hit approximately $14.03 billion. That’s a jump of over 7,000 percent from the same time last year. Much of this impressive gain comes from an unrealized gain on their digital assets, a cool $14 billion. It shows what happens when your main asset takes off.
This big shift in numbers also comes with a change in how they count their digital assets. Since January 1, 2025, Strategy has been using fair value accounting. This means they value their Bitcoin at its current market price, rather than its original cost minus any drops in value.
Before this change, under the old cost-less-impairment model, they reported digital asset impairment losses. For the second quarter of 2024, these losses were $180 million. The new accounting method paints a much brighter picture when Bitcoin is on the rise.
Andrew Kang, Strategy’s Chief Financial Officer, put it plainly. He said these financial results, built on their Bitcoin balance sheet, are at all-time highs for the company. He even said they rank among the most successful quarterly results across the largest public companies in the world. Strong words, but the numbers back him up.
So, how much Bitcoin are we talking about? As of July 30, Strategy holds 628,791 BTC. Their total investment stands at $46.07 billion. That puts their average cost per bitcoin at $73,277. It’s a big stack, and they’re not done buying.
Right around the time they released these earnings, Strategy made another move. They filed for a $4.2 billion STRC offering. What’s STRC? It’s a new type of offering, and the company plans to use the money raised to buy even more Bitcoin. It’s a familiar play from their playbook.
A New Way to Fund Bitcoin Buys
Michael Saylor, the Executive Chairman, has been quite vocal about this new offering. He called STRC the world’s first Treasury Preferred Stock. He said it’s built for price stability and aims to give short-duration, high-yield returns to a new group of investors. It sounds like a fresh approach to raising capital for Bitcoin buys.
STRC expands their capital markets platform, Saylor explained. He sees it as an instrument that balances stability and yield. It shows their dedication to creating new financial products that help the Bitcoin economy grow. It’s a bold statement, but then again, Saylor rarely makes quiet ones.
This new STRC will accumulate dividends at a variable rate. It’s based on a stated amount of $100 per share. It joins three other perpetual preferred shares the company already has. These existing shares have no maturity date and offer fixed dividend payments as long as the company keeps operating.
Think of it like this: Strategy is finding new ways to bring in money, specifically to buy more Bitcoin. They’re not just relying on their existing stock. They’re creating new financial tools to keep their Bitcoin treasury growing. It’s a strategy that has certainly paid off for them so far.
The company isn’t shy about its future plans either. They’re raising their full-year Bitcoin Yield target to 30 percent. And their “Bitcoin Dollar Gain” target is now $20 billion. These are ambitious goals, but after a quarter like this, who’s to say they can’t hit them?
What Analysts Are Saying
Even analysts are taking note of Strategy’s unique approach. Earlier this week, TD Cowen analysts shared their thoughts. They believe Strategy could add over 17,000 more Bitcoin to its treasury over the next ten years. That’s a significant amount.
What’s more, they think this can happen without diluting common equity. This means the company wouldn’t need to issue more regular shares to fund these Bitcoin purchases. Even after accounting for the common stock that might be needed for cash dividends from the new variable rate preferred offering, the math still works out.
It suggests that Strategy has found a way to keep growing its Bitcoin stack without putting pressure on its existing common shareholders. It’s a clever bit of financial engineering, if you ask me. They are playing a long game, and they are playing it with Bitcoin as their main piece.
Total revenues for the quarter were $114.5 million. That’s a 2.7 percent increase year-over-year. While the Bitcoin gains steal the headlines, it’s worth remembering they still have their core business bringing in revenue. It’s a dual engine, with Bitcoin now clearly in the driver’s seat.
So, Strategy continues its march as a Bitcoin treasury company. They’ve shown that betting big on Bitcoin can lead to some truly eye-popping financial results. The question now is, how much higher can they go, and what other financial innovations will they bring to the table?
