Strategy stunned financial markets with a $4.2 billion preferred stock offering to accelerate its Bitcoin treasury expansion, despite muted initial investor reaction. The company, positioning itself as the world’s largest corporate Bitcoin holder, reported a staggering $10 billion GAAP net profit in Q2 2025—a dramatic reversal from its $102.6 million loss a year earlier. This surge was driven by $14 billion in unrealized gains from its 597,325 Bitcoin holdings, purchased at an average of $70,982 per coin. Quarterly earnings per share skyrocketed to $32.60, obliterating analyst forecasts of a $0.10 loss.
Wall Street Optimism Meets Short-Term Skepticism
BTIG raised its price target to $700, citing Strategy’s projected $80 EPS for 2025 if Bitcoin hits $150,000. Yet shares dipped 4% pre-market as investors questioned sustainability, given operational revenue grew only modestly to $114.5 million. The firm’s aggressive Bitcoin accumulation—now worth $13.2 billion on paper—reflects its bet on cryptocurrency as a reserve asset, bolstered by favorable U.S. regulatory shifts. With a $114 billion market cap, Strategy trades at just 5x expected earnings, offering rare value for a company targeting $20 billion in Bitcoin-driven profits next year.
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