Strategy Reports $10 Billion Q2 Profit Amid Bitcoin Rebound

Strategy, formerly known as MicroStrategy, reported a record profit of $10 billion on Thursday after its Bitcoin holdings rebounded in value during the second quarter.

The Tysons Corner, Virginia-based firm, which holds more Bitcoin than any other publicly traded company, disclosed $114.5 million in second-quarter revenue, a 3% increase compared to a year ago, according to a company blog post.

The profit was anticipated, given that Bitcoin’s falling price in the first quarter resulted in a $5.9 billion loss for the Bitcoin treasury company. The asset’s price dipped as low as $77,000 in Q1 before soaring as high as $111,000 in Q2, according to crypto data provider CoinGecko.

Since the company began accumulating Bitcoin in 2020, the firm, which has pivoted away from software development, has built up a stockpile of 628,800 Bitcoin worth $74 billion. 

At the end of the second quarter, Strategy held 597,000 Bitcoin, growing its Bitcoin stash by nearly 20% quarter-over-quarter, from 499,000 Bitcoin, according to Bitcoin Treasuries.

A wave of crypto treasury firms have debuted this year, but Strategy pioneered the playbook, issuing shares to capture a premium that its stock trades at relative to its crypto holdings and issuing corporate debt to purchase more Bitcoin than it could otherwise.

This year, the company has issued several types of preferred stock to fund Bitcoin purchases. And on Tuesday, Strategy said that it had purchased around 21,000 Bitcoin after raising $2.5 billion through STRC, the latest in its series of perpetual preferred offerings.

In after-hours trading, the company’s shares rose 1.5% to $408.

Bitcoin’s price has advanced 11% over the past month to $118,000 after setting a record high of $122,838 in July, according to crypto markets data provider CoinGecko. Strategy’s shares, however, have edged down 0.6% over the same period, after jumping as high as $543 last year, as of Thursday’s market close, according to Yahoo Finance.

The company said in October that it would raise $42 billion to purchase Bitcoin through equity and fixed income sales over the next three years. By the end of the first quarter, it had already issued a maximum of $21 billion in common stock approved under the plan. Strategy subsequently unveiled a plan to issue $21 billion more in common stock.