MicroStrategy currently holds 3% of Bitcoin’s total supply and aims to increase its holdings to 7%, backed by a record Q2 profit of $10 billion, marking a strong bullish stance on BTC.
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MicroStrategy controls over 628,000 BTC, with plans to reach 1.5 million BTC.
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The firm reported its first profitable quarter after losses, with $10 billion net income in Q2 2025.
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Capital raises through preferred stocks help fund Bitcoin purchases while managing share dilution effectively.
MicroStrategy’s Bitcoin holdings surge to 3%, targeting 7%, alongside a record Q2 profit. Discover how strategic capital raises support their crypto growth.
How MicroStrategy’s Bitcoin Holdings Reflect Strategic Crypto Confidence
MicroStrategy’s aggressive Bitcoin accumulation now represents approximately 3% of the total BTC supply, with chairman Michael Saylor expressing no concern over expanding this to 7%. The firm currently holds 628,791 BTC and aims to increase this to about 1.5 million BTC, signaling a long-term bullish outlook on Bitcoin’s value and utility.
What Are the Financial Implications of MicroStrategy’s Q2 Performance?
In Q2 2025, MicroStrategy posted a net income of $10 billion, marking its first profitable quarter after a series of losses. The company’s Bitcoin holdings contributed a substantial $13.2 billion gain year-to-date. This turnaround highlights the firm’s effective treasury management and confidence in Bitcoin as a core asset.
Source: Bitcoin Treasuries
How Does MicroStrategy Manage Capital to Support Bitcoin Purchases?
MicroStrategy funds its Bitcoin acquisitions primarily through stock issuance and debt, which has led to share dilution and a decline in its modified net asset value (mNAV). To mitigate dilution, the firm plans to sell common shares only when the mNAV exceeds 2.5x. This disciplined approach to capital management has been praised by industry experts as exemplary treasury strategy.
What Role Do Preferred Perpetual Stocks Play in MicroStrategy’s Strategy?
The company has introduced yield-bearing preferred perpetual stocks—Stretch (STRC), Strike (STRK), Stride (STRD), and Strife (STRF)—to raise capital for Bitcoin purchases. Stretch (STRC) is the most significant, having recently raised $2.5 billion to acquire over 21,000 BTC. Michael Saylor describes STRC as a ‘treasury BTC’ akin to a money market fund, offering variable yields tied to market performance.
Source: Excerpt from Strategy’s earnings report
Meanwhile, the common stock MSTR is positioned as ‘amplified BTC’ offering investors approximately 2x exposure to Bitcoin’s price movements. Saylor views MSTR as undervalued, citing an estimated net income of $24 billion and emphasizing the firm’s innovative corporate treasury model.
Source: Strategy/X
How Are Analysts Viewing MicroStrategy’s Market Position?
Wall Street analysts from Benchmark have assigned a buy rating to MSTR with a price target of $705. They highlight MicroStrategy’s evolution beyond Bitcoin accumulation into a sophisticated treasury management entity focused on generating Bitcoin-denominated returns and scaling capital raises efficiently.
Despite a recent 8.7% intra-day drop in MSTR’s stock price to $366.63 on August 1, Bitcoin itself declined only 2% over the same period, reflecting market volatility distinct from the firm’s fundamentals.
Source: MSTR, TradingView
Frequently Asked Questions
What percentage of Bitcoin does MicroStrategy currently hold?
MicroStrategy currently holds approximately 3% of the total Bitcoin supply, equating to 628,791 BTC, with plans to increase this to around 7% or 1.5 million BTC.
How does MicroStrategy fund its Bitcoin purchases?
The company funds its Bitcoin acquisitions through stock issuance, debt, and preferred perpetual stocks, carefully managing share dilution by limiting sales when modified net asset value is favorable.
Key Takeaways
- MicroStrategy holds 3% of Bitcoin supply: The firm aims to increase holdings to 7%, reflecting strong confidence in BTC.
- Record Q2 profit of $10 billion: The first profitable quarter after losses, driven by Bitcoin gains.
- Capital raised via preferred stocks: Innovative treasury management limits share dilution while funding BTC purchases.
Conclusion
MicroStrategy’s strategic Bitcoin accumulation and record Q2 profit underscore its commitment to cryptocurrency as a core asset. With disciplined capital management and innovative funding methods, the firm is positioned to scale its BTC holdings while maintaining financial stability. This approach highlights MicroStrategy’s expertise and confidence in Bitcoin’s long-term value.
