MicroStrategy, now known as Strategy, has reported an impressive $14.05 billion in unrealized gains from Bitcoin investments in the second quarter of 2025, positioning the company alongside corporate heavyweights like Amazon and JPMorgan Chase.
The remarkable shift from its origins in software stems from the simultaneous rollout of a new $4.2 billion STRD preferred stock program aimed at boosting its Bitcoin reserves.
Record Bitcoin Gains Amid Continued Accumulation
This record quarterly gain is mainly attributed to a rebound in Bitcoin prices, along with Strategy’s adoption of Accounting Standards Update No. 2023-08, which took effect on January 1, 2025.
The new accounting model allows Strategy to recognize the fair value fluctuations of its Bitcoin holdings as they happen, rather than just accounting for impairment losses.
To date, the company has incurred a deferred tax expense of $4.04 billion and currently carries a deferred tax liability totaling $6.31 billion.
In a further push to increase its Bitcoin holdings, the firm revealed plans for a 10.00% Series A Perpetual Stride Preferred Stock offering, expected to reach an aggregate value of $4.2 billion through an at-the-market program.
Strategy Announces $4.2 Billion $STRD At-The-Market Program pic.twitter.com/JVIYQmQSpv
— Michael Saylor (@saylor) July 7, 2025
The company has indicated that sales of the preferred stock will be methodical and timed according to market conditions related to pricing and volume.
Proceeds from these sales are intended to support general corporate needs, encompassing further Bitcoin acquisitions and working capital.
As of July 6, 2025, Strategy owned 597,325 bitcoins, totaling a purchase price of $42.40 billion, with an average acquisition cost of $70,982 per bitcoin.
Source: Saylor Tracker
During the second quarter, Strategy purchased an additional 69,140 bitcoins for a total of $6.77 billion, funded through various equity offerings, including $5.2 billion generated from common stock ATM programs and $979.7 million from the STRD offering.
Robust Capital Markets Drive Bitcoin Accumulation
The company raised a total of $6.8 billion in net proceeds from various financing activities in Q2 2025.
This fundraising included $163.1 million from the STRF ATM program, $446.9 million from the STRK ATM program, and $979.7 million from the completed STRD registered underwritten offering on June 10.
Additionally, the terminated 2024 Common ATM program generated $2.4 billion, while the new 2025 Common ATM program has already contributed $2.9 billion.
Currently, around $18.1 billion of Class A common stock is still available for future issuance under the 2025 program, along with $20.5 billion from STRK Stock and $1.9 billion from STRF Stock.
Strategy’s preferred stock portfolio has a total notional value of $3.4 billion, yielding annual dividends of $315.9 million.
The company also has $8.213 billion in convertible notes outstanding, with conversion conditions expected to be met for Q3 2025, based on the 130% conversion price threshold.
The maximum possible common shares from these conversions amount to 24,439,825 shares.
Source: Strategy Report
During the second quarter, Bitcoin prices fluctuated between $74,420.69 and $112,000.00, with a quarter-end price of $107,751.68 on Coinbase.
This volatility has resulted in significant fair value changes, contrasting sharply with the $5.91 billion unrealized loss recorded in Q1 2025.
Strategy cautions that these results will not be directly comparable to earlier periods due to the adoption of new accounting standards.
Legal Challenges and S&P 500 Inclusion Prospects
Strategy is currently facing multiple class-action lawsuits, alleging false and misleading disclosures regarding the profitability and risks associated with its Bitcoin strategy.
A lawsuit filed by Pomerantz LLP represents shareholders who acquired stock between April 30, 2024, and April 4, 2025, with a deadline of July 15 for additional investors to join the case.
New York law firm Pomerantz has filed a lawsuit against Michael @Saylor’s @Strategy, accusing the Bitcoin-focused firm of misleading investors.#Bitcoin #Saylorhttps://t.co/ZwEcH2nYTQ
— Finance Newso.com (@Finance Newso) July 3, 2025
The lawsuit critiques Strategy’s compliance with ASU 2023-08, arguing that the company failed to adequately disclose the potential implications for its financial outcomes.
The complaint highlights the $5.9 billion unrealized loss in Q1 2025, which led to an 8% drop in stock price, exposing volatility risks that had been allegedly minimized by management.
Financial analyst Jeff Walton estimates that Strategy has a 91% chance of being included in the S&P 500, contingent on Bitcoin maintaining values above $95,240 through June 30.
Strategy tracking day 337$MSTR now ranked 93rd largest US company by market cap ($112.99B)
Jumped 1 company (Nike) today, and 1 company this week. Digital Capital now chasing Analog Devices.
Day 3 of qualifying for S&P 500
11th largest publicly traded equity by volume
Cheers… https://t.co/sd8O72svbL pic.twitter.com/Z9k3FjEqpt
— Jeff Walton (@PunterJeff) July 3, 2025
The firm must demonstrate cumulative positive earnings over four quarters to be eligible for S&P 500 inclusion, with Q2 results closely tied to Bitcoin’s market value, especially following three consecutive quarters of losses.
Industry critics, including short-seller Jim Chanos, have voiced strong opposition to Strategy’s business model, describing it as “financial gibberish” and pointing out that the company’s market capitalization of $100 billion exceeds its $60 billion in Bitcoin assets.
Chanos advocates for shorting MSTR stock while purchasing Bitcoin directly, suggesting that the price premium is likely to decrease over time.
Since initiating Bitcoin purchases in mid-2020, Strategy’s shares have surged by 3,130%, significantly outperforming Bitcoin’s 1,000% rise and the S&P 500’s 115% increase during the same period.
In Q2, the stock climbed 40%, outpacing the S&P 500’s 11% growth, subsequently inspiring similar corporate strategies from other businesses, such as SharpLink Gaming’s focus on Ether.
The post MicroStrategy Reports $14B Bitcoin Gains in Q2 While Launching $4.2B STRD Stock Program to Buy More BTC appeared first on Finance Newso.
