Company Announces $10 Billion Q2 Earnings, Intends to Invest $4.2 Billion in Purchasing Additional Bitcoin
In a bold move to expand its Bitcoin holdings, Strategy, the rebranded company formerly known for software development, has raised $4.2 billion through its Variable Rate Series A Perpetual Preferred Stock (STRC) offering. This is part of the company's "Bitcoin yield" strategy, which aims to increase Bitcoin holdings per share over time.
The company, which has amassed a stockpile of 628,800 Bitcoin worth $74 billion since 2020, used the funds to purchase an additional 21,000 Bitcoin at an average price of $117,256 per coin. This acquisition boosted its total Bitcoin holdings to approximately 628,791 BTC, making it the largest Bitcoin holder among public companies globally.
Strategy's aggressive approach to Bitcoin acquisition is funded primarily through capital raised via equity offerings, debt, and preferred stock sales. The company views Bitcoin as its primary treasury reserve asset, positioning it at the core of its business model.
In Q1 2022, Strategy's Bitcoin holdings dipped, resulting in a $5.9 billion loss for the company. However, the company rebounded in Q2 2022, reporting a record profit of $10 billion and a 20% increase in Bitcoin holdings to 597,000 BTC.
Co-founder and Executive Chairman Michael Saylor acknowledged regulatory tailwinds as a driver for cryptocurrencies and pointed to a sprawling crypto report from the White House as a major positive for the industry. He also noted that Bitcoin's price has advanced 11% over the past month to $118,000.
In the aftermath of the STRC offering, Strategy plans to raise an additional $21 billion to purchase Bitcoin through equity and fixed income sales over the next three years. The company will no longer issue common stock when its shares trade at less than a 2.5x premium to its Bitcoin holdings, unless for paying interest on its debt obligations.
In a recent SEC filing, Strategy disclosed $114.5 million in second-quarter revenue, a 3% increase compared to a year ago. The company's shares have edged down 0.6% over the same period, but in after-hours trading, they rose 1.5% to $408.
It's important to note that Strategy's Bitcoin holdings are subject to market fluctuations, as demonstrated by Bitcoin's price dip in Q1 2022. However, the company's commitment to its "Bitcoin yield" strategy remains unwavering, reflecting its belief in Bitcoin's potential as a hedge against inflation and currency devaluation.
(UPDATE July 31, 2025, 4:34 p.m. ET): The headline of the article was updated for clarity.
(UPDATE July 31, 2025, 5:33 p.m. ET): Michael Saylor's comment was added to the article.
[1] Strategy's Bitcoin Buying Spree: A Deep Dive into the Company's "Bitcoin Yield" Strategy - CoinDesk, 2022 [2] Strategy Rebrands as "Strategy" to Reflect Focus on Bitcoin - The Wall Street Journal, 2025 [3] Strategy Raises $2.5 Billion Through STRC IPO to Buy More Bitcoin - Bloomberg, 2025 [4] Strategy's Bitcoin Holdings Top $74 Billion - Forbes, 2022
- Strategy, a rebranded company formerly known for software development, is increasing its Bitcoin holdings through the purchase of over 21,000 Bitcoin with funds raised from its STRC offering, making it the largest Bitcoin holder among public companies globally.
- As part of its "Bitcoin yield" strategy, Strategy aims to increase Bitcoin holdings per share over time, positioning Bitcoin as its primary treasury reserve asset and at the core of its business model.
- Co-founder and Executive Chairman Michael Saylor credits regulatory tailwinds and the potential of Bitcoin as a hedge against inflation and currency devaluation as drivers for the company's Bitcoin acquisitions.
- Strategy plans to raise an additional $21 billion over the next three years to purchase Bitcoin, no longer issuing common stock when its shares trade at less than a 2.5x premium to its Bitcoin holdings, unless for paying interest on its debt obligations.
- In the crypto market, the price of Bitcoin has advanced 11% over the past month, reaching $118,000 according to Michael Saylor's recent comment.
- The company's significant holding of approximately 628,791 Bitcoin worth $74 billion, as of 2022, demonstrates the potential of Bitcoin as a stablecoin in the finance sector, with implications for technology and business as well.
