Strategy reports $14.03B in Q2 operating income and $10.02B in net income

Strategy posted its biggest quarterly earnings ever in Q2 2025, and the reason is crystal clear: it’s sitting on a mountain of Bitcoin.

The company, which now identifies as a Bitcoin treasury firm, reported $14.03 billion in operating income, a record-setting figure driven by crypto gains. This number shows a 7,106.4% increase from the same quarter last year, when the firm posted a $200 million operating loss. Strategy’s stock MSTR has surged by 2% after hours.

According to Strategy’s official statement, this turnaround is directly tied to the company’s decision to value its crypto assets at fair market price under new accounting rules.

The company also logged $10.02 billion in net income, up from a $102.6 million net loss the year prior. Diluted earnings per share reached $32.60, blowing past all historical performance.

Strategy’s total Bitcoin holding stood at 628,791 BTC, bought at a cost of $46.07 billion. The average cost per coin sits around $73,277, and the company’s BTC is now worth far more than that based on current market prices.

Bitcoin lifts income and updated yearly targets

Phong Le, Strategy’s President and CEO, confirmed the numbers are a direct result of the firm’s aggressive crypto accumulation. “We expanded our bitcoin holdings to 628,791 bitcoins, raised over $10 billion through our ATM programs and IPOs, and saw growing institutional and retail demand for our securities,” Phong said.

He added that Strategy’s Bitcoin per Share (BPS) climbed 25% year-to-date, prompting the firm to revise its BTC Yield target from 25% to 30%, and its BTC $ Gain projection from $15 billion to $20 billion by year’s end.

He explained that fair value gains from Bitcoin pushed Q2 operating income to $14 billion and that the firm expects $34 billion in operating income and $24 billion in net income for the full year. The company is also forecasting $80 in EPS, assuming Bitcoin reaches $150,000 by December.

The crypto gain for Q2 alone stood at $9.5 billion, with the company holding 597,325 bitcoin as of June 30. These were valued at $64.4 billion, with a cost basis of $42.4 billion. An additional 31,466 BTC was acquired between July 1 and July 29. Strategy said it booked a $14 billion fair value gain in Q2, compared to a $180 million impairment loss using the old cost-based accounting system last year.

Capital programs boost liquidity for Bitcoin buys

Strategy brought in over $10.5 billion in fresh cash in Q2 and July through stock sales, with nearly half of it raised via its common stock ATM program. The company sold 14.2 million shares between April and June, raising $5.2 billion, and another 2.4 million shares in July for $1.1 billion. As of July 29, there’s still $17 billion worth of shares that can be sold under this program.

The firm also leaned heavily on four preferred stock instruments: STRK, STRF, STRD, and STRC. It raised $446.9 million from selling STRK shares in Q2 and another $71.8 million in July. For STRF, the numbers were $163.1 million in Q2 and $55.8 million in July.

The IPO of STRD in May pulled in $979.7 million, and another $17.9 million came in through the STRD ATM in July. In total, the STRD ATM still has $4.2 billion left unissued. Then in July, the company launched STRC and raised $2.5 billion through its IPO.

Outside of crypto, Strategy’s software business reported $114.5 million in total revenue for Q2, a 2.7% increase from last year. The biggest growth came from subscription services, which climbed 69.5% year-over-year to $40.8 million.

Gross profit for the quarter was $78.7 million, giving the segment a 68.8% gross margin, slightly below last year’s 72.2%. Strategy closed Q2 with $50.1 million in cash, up from $38.1 million at the end of 2024.

For the rest of 2025, Strategy said it expects to hit its revised Bitcoin goals through a mix of preferred stock offerings and common stock issuance, guided by mNAV thresholds. The company said this approach would grow its bitcoin wallet without exposing shareholders to unnecessary dilution. Strategy also noted that because of its large crypto holdings and the use of fair value accounting, its earnings are highly sensitive to Bitcoin’s market price.

The firm closed by stating it will not update its guidance unless required by law.

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