Strategy Reports $14.05 Billion Gain From Bitcoin Rebound

Strategy, under the leadership of Michael Saylor, reported an unrealized gain of $14.05 billion in the second quarter of 2025. This substantial gain was primarily attributed to the rebound in Bitcoin's price, which increased the carrying value of the company’s Bitcoin holdings to $64.36 billion by the end of the quarter. The fair value increase of $14.05 billion was recorded when Bitcoin was trading around $107,751 on the Coinbase exchange. However, this paper gain also resulted in a deferred tax expense of $4.04 billion.

During the second quarter, Strategy acquired 69,140 BTC for approximately $6.77 billion, at an average price of $97,906 per Bitcoin. The company funded this aggressive buying spree through various capital markets activities, including net proceeds of $6.8 billion raised via “at-the-market” (ATM) equity offering programs and a registered offering of its preferred stock that netted $979.7 million. Despite this, Strategy carries significant leverage, with about $8.24 billion in outstanding debt and $3.4 billion in preferred stock, pushing its annual interest and dividend obligations past $350 million.

The company acknowledged that future profitability is contingent on Bitcoin’s price and highlighted potential liquidity risks if forced to sell its BTC to meet obligations during market downturns. While Strategy’s buying spree was substantial, with the last purchase being a $531 million outlay on 4,980 BTC, the company did not make any Bitcoin purchases between June 30 and July 6. This break in its consistent buying pattern was notable, as other firms that have adopted a similar strategy took advantage of Strategy’s absence to increase their holdings. For instance, Tokyo-based Metaplanet acquired 2,205 BTC for around $238.7 million, and The Blockchain Group scooped up 116 BTC for nearly €11 million.

Strategy’s transformation from a struggling enterprise software maker into the leading leveraged Bitcoin proxy has been remarkable. This shift was achieved through the sale of common and preferred shares and debt offerings. The company’s shares have soared over 3,300% since Saylor began buying Bitcoin in the middle of 2020 as a hedge against inflation. Bitcoin is up around 1,000% during the same period, while the S&P 500 has increased around 115%. The stock rose 40% in the second quarter as the S&P climbed 11%.

In the first quarter, Strategy adopted an accounting change that requires valuing the firm’s Bitcoin at market prices. This change means that Strategy and fellow corporate buyers of Bitcoin are now recognizing the unrealized changes that often produce big swings in earnings. Strategy posted a record $4.2 billion loss in the first quarter, which saw Bitcoin slump 12%. Prior to the accounting change, Strategy had been classifying its Bitcoin holdings similar to intangible assets like patents or trademarks. That designation forced Strategy to permanently mark down the value of its holdings when the price of Bitcoin dropped below the previous carrying value. Gains could only be recognized when tokens were sold.

Strategy’s quarterly results are expected to place it in a select group with operating profits exceeding $10 billion last quarter. However, the company is anticipated to only post about $112.8 million in revenue from its software business, according to analysts surveyed. The company is expected to release second-quarter results in August.