Strategy CEO Suggests Bitcoin Holdings May Be Undervalued Despite $10 Billion Q2 Profit and $4.2 Billion Raise Plan

• Strategy reported a 7,100% year-on-year rise in operating income to $14 billion in Q2 2025.

• The firm aims to raise $4.2 billion through preferred stock to purchase more Bitcoin under its “42/42” plan.

• CEO Phong Le highlights Strategy’s position as the 96th-largest market cap in the S&P 500 with one of the lowest P/E multiples.

Strategy CEO Phong Le reveals $10B Q2 profit and $4.2B capital raise to boost Bitcoin holdings. Discover the latest on Strategy’s growth and market position.

Why Strategy Is Considered Undervalued Despite Record Bitcoin Profits

Strategy’s CEO Phong Le emphasizes that the company remains one of the most misunderstood and undervalued stocks in the market despite posting a historic $10 billion profit in Q2 2025. The firm’s operating income surged by 7,100% year-on-year to $14 billion, driven largely by Bitcoin’s fair value accounting gains. Strategy’s market capitalization ranks 96th in the S&P 500, yet it holds one of the lowest profit-to-earnings multiples, signaling significant undervaluation.

How Strategy’s Financials Reflect Its Bitcoin-Centric Business Model

Strategy’s operating income, now projected at $34 billion for fiscal 2025, places it among the top ten earners in the S&P 500. The company’s software division, which includes business intelligence and subscription services, contributed $114 million in revenue during the quarter. Despite a 1.4% drop in after-hours trading, Strategy’s common stock remains robust, reflecting investor confidence in its Bitcoin strategy.

How Strategy Is Raising the Bar with Bitcoin Yield and Gains

Strategy currently holds 628,791 Bitcoin valued at $73.3 billion. The company reported a 25% increase in its Bitcoin yield during Q2, with Bitcoin gains surpassing $13 billion, already meeting its year-end targets. CEO Phong Le announced an upward revision of full-year targets to a 30% Bitcoin yield and $20 billion in Bitcoin gains, underscoring the firm’s confidence in its cryptocurrency strategy.

What Are Strategy’s Plans for the $4.2 Billion Capital Raise?

Strategy has agreed to issue up to $4.2 billion in preferred stock (ticker: STRC) to fund additional Bitcoin purchases. This follows a $2.5 billion raise earlier in July, which was used to acquire 21,021 Bitcoin. The new capital raise could enable the purchase of approximately 36,128 Bitcoin at current prices, reinforcing Strategy’s long-term goal to accumulate $84 billion worth of Bitcoin under its “42/42” plan.

Frequently Asked Questions

What contributed to Strategy’s $10 billion profit in Q2 2025?

Strategy’s $10 billion Q2 profit mainly stems from a 7,100% year-on-year increase in operating income, largely due to unrealized Bitcoin gains recognized under fair value accounting.

Why is Strategy considered undervalued despite strong financials?

Despite its strong Bitcoin-driven earnings and a market cap ranking 96th in the S&P 500, Strategy has one of the lowest profit-to-earnings multiples, indicating the market undervalues its growth potential.

Key Takeaways

• Record Bitcoin Profit: Strategy achieved a $10 billion profit in Q2 2025, reflecting strong Bitcoin market performance.
• Capital Raise for Expansion: The company plans to raise $4.2 billion through preferred stock to increase Bitcoin holdings.
• Market Undervaluation: Despite strong earnings, Strategy remains undervalued with a low P/E ratio in the S&P 500.

Conclusion

Strategy’s impressive Bitcoin-driven profits and ambitious capital raising plans highlight its commitment to expanding cryptocurrency holdings. CEO Phong Le’s remarks underscore the firm’s undervaluation and growth potential within the S&P 500. As Strategy advances its “42/42” plan, it remains a key player to watch in the Bitcoin investment landscape.