Key Takeaways:
- Strategy reports a record-breaking $10 billion Q2 profit, fueled by Bitcoin price surge.
- The company boosted BTC holdings to 597,000, now controlling 3% of Bitcoin’s total supply.
- Plans to raise $4.2 billion through perpetual preferred shares for further BTC accumulation.
Strategy, the firm that pioneered corporate Bitcoin treasury strategies, has reaffirmed its crypto-first playbook with explosive earnings and fresh fundraising. The Bitcoin-centric company, formerly known as MicroStrategy is once again doubling down on its BTC bet, leveraging preferred stock to expand one of the largest corporate crypto portfolios on earth.
Read More: Strategy’s $2.5B Crypto Play: Secret Stock Move Fuels One of Largest Bitcoin Grabs Yet
Strategy’s Q2 Profits Skyrocket as BTC Prices Rebound
Strategy’s second quarter saw a dramatic turnaround from Q1’s $5.9 billion loss. Riding the wave of Bitcoin’s resurgence—rising from lows of $77,000 to over $111,000, the firm locked in $10 billion in profit, fueled by the appreciation of its BTC holdings.
3% of Global Bitcoin Supply Now Controlled
With 597,000 BTC as of the end of Q2, Strategy now holds approximately 3% of Bitcoin’s circulating supply, according to the video posted on X by Strategy about Strategy Q2 Earnings. That places it far ahead of any other publicly traded company in the crypto space, including BlackRock, Tesla, and Coinbase.
In Q2 alone, the company added nearly 100,000 BTC, reflecting a 20% increase in its holdings from the prior quarter. Since it began purchasing Bitcoin in 2020, Strategy has accumulated over 628,800 BTC in total though some were used for operational liquidity or sold strategically.
Read More: Strategy Reports $5.8B Bitcoin Gain in Q1 2025, Doubles Investment Plan to $84B
$4.2 Billion Capital Raise via STRC Shares
To further expand its BTC holdings, Strategy has announced plans to raise $4.2 billion through the issuance of STRC perpetual preferred stock. This comes on the heels of a similar $2.5 billion raise used to acquire 21,000 BTC in recent weeks.
The Role of Perpetual Preferred Stock in Strategy’s BTC Strategy
The STRC offering is part of a larger fundraising model that allows Strategy to issue non-voting, dividend-paying shares that fund Bitcoin purchases without diluting its common stock. This method enables the company to leverage premium valuations on the stock market where its shares often trade at multiples to its BTC NAV.
Michael Saylor, Executive Chairman and the architect of the company’s Bitcoin thesis, has previously stated that this structure allows Strategy to be “a leveraged Bitcoin ETF without liquidation risk.”
Unlike traditional ETFs, Strategy’s equity model lets it amplify BTC exposure through share issuance, sidestepping SEC limits and ETF mechanics. It also grants more direct treasury control and strategic timing of buys.
Bitcoin’s Q2 Rally Turns into a Corporate Windfall
Strategy’s Q2 gains didn’t come solely from its BTC stash appreciating in price. The company also reported $114.5 million in revenue, a modest 3% YoY increase from software and cloud services; its legacy business.
However, it’s clear that Bitcoin is the business now. BTC-related gains made up more than 99% of the profit this quarter. Strategy’s software operations have become a mere side note compared to its role as a corporate BTC whale.
This quarter also marks the first time Strategy’s total Bitcoin holdings exceeded $74 billion in value, according to estimates based on quarter-end BTC prices.
Regulatory Winds Shift Favorably
Saylor highlighted improving regulatory sentiment in the U.S. as a bullish catalyst. He pointed to a recent White House crypto policy report, which he described as “supportive of the Bitcoin ecosystem.”
“The takeaway is clear,” he said in a recent investor call. “The current administration is signaling green lights for Bitcoin adoption, and we’re positioning accordingly.”
This aligns with Strategy’s decision to halt new common stock issuance unless shares are trading at a premium of at least 2.5x to the company’s Bitcoin NAV, an investor-friendly move that protects existing equity value while leaning further into BTC exposure.
More BTC on the Horizon?
Strategy’s roadmap remains aggressive. As of Q1, the firm had already raised $21 billion out of a $42 billion multiyear plan to fund Bitcoin purchases through equity and debt offerings. The latest $4.2 billion plan continues that trajectory.
If executed, the next acquisition phase could bring Strategy’s Bitcoin stack close to or above 700,000 BTC, more than most countries hold in gold reserves.
Bitcoin’s recent climb to $118,000 (with a July high of $122,838) makes each BTC acquisition more expensive, but Strategy shows no signs of slowing. Instead, it seems determined to outpace market appreciation with capital leverage.
