Strategy’s shares fell 1.4% in after-hours trading despite posting a company-record $10 billion in profit in the second quarter, as CEO Phong Le called the Bitcoin-holding company the “most misunderstood and undervalued stock” in the market.
Strategy’s operating income rose 7,100% year-on-year (YOY) to $14 billion, the company Michael Saylor co-founded said in its earnings statement on Thursday.
It marked the second reporting period in which the firm applied fair value accounting, which includes unrealized gains from Bitcoin (BTC).
Strategy also announced plans to raise another $4.2 billion worth of shares through one of its preferred stock offerings to buy more Bitcoin, part of its long-term goal to buy $84 billion worth of the cryptocurrency under its upgraded “42/42” plan.
Strategy misunderstood, undervalued: Phong Le
Strategy’s estimated operating income for the 2025 financial year now sits at $34 billion, the ninth-largest income among Standard and Poor’s 500 (S&P 500) companies, Le said in the earnings call.
He said Strategy boasts the 96th-largest market cap and one of the lowest profit-to-earnings multiples among firms in the S&P 500.
”We’re capitalized on the most innovative technology and asset in the history of mankind, on the other hand, we’re possibly the most misunderstood and undervalued stock in the US and potentially the world.”
Comparison of Strategy’s operating income and market cap against other top firms in the S&P 500. Source: Strategy
Strategy’s software arm, which covers its business intelligence products and subscription services, brought in $114 million in revenue in the quarter.
Strategy’s common stock, MSTR, closed up 1.73% to $401.86 on Thursday but has fallen 1.4% in after-hours, Google Finance data shows.
Strategy is raising the bar for its Bitcoin metrics
Strategy, which has accumulated 628,791 BTC worth $73.3 billion to date, noted that its “BTC yield” increased 25% in the second quarter and its “BTC $ Gain” is over $13 billion, already reaching Strategy’s end-of-year targets.
BTC yield represents the percentage change ratio between Strategy’s Bitcoin and its assumed diluted shares outstanding, while the “BTC $ Gain” reflects the gain in Bitcoin’s value measured in US dollars.
As a result, Strategy is raising its full-year “BTC Yield” and “BTC $ Gain” targets to 30% and $20 billion, respectively, Le said.
”Any company that is able to double their targets throughout the course of the year, you would consider that a success.”
Strategy to raise $4.2 billion to buy more Bitcoin
Meanwhile, Strategy said it entered into an agreement to issue and sell up to $4.2 billion worth of shares in one of its preferred stock offerings, which will be used to purchase more Bitcoin.
The Variable Rate Series A Perpetual Stretch Preferred Stock, tickered STRC, has been one of Strategy’s main investment vehicles to bolster its Bitcoin holdings through what the firm describes as “intelligent leverage.”
It comes as Strategy raised $2.5 billion from STRC earlier in July, which it used to purchase 21,021 Bitcoin, making it the largest US equity raise so far in 2025.
At current market prices, Strategy could purchase another 36,128 Bitcoin from the $4.2 billion raise.
