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Strategy Announces Second Quarter 2025 Financial Results; Record Net Income of $10.0 Billion and EPS of $32.60

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Earnings Highlights



  • $14.0 billion of Operating Income in Q2
  • $10.0 billion of Net Income in Q2
  • $32.60 of Diluted Earnings per Share in Q2

Bitcoin Highlights

  • 628,791 bitcoin holdings at a total cost of $46.07 billion, or $73,277 per bitcoin YTD
  • 25.0% BTC Yield achieved in 2025 YTD
  • $13.2 billion BTC $ Gain achieved in 2025 YTD

FY2025 Earnings Guidance

  • Operating Income of $34 billion
  • Net Income of $24 billion
  • Diluted Earnings per Share of $80 per share

TYSONS CORNER, Va.--(BUSINESS WIRE)--MicroStrategy® Incorporated d/b/a Strategy™ (Nasdaq: MSTR/STRK/STRF/STRD/STRC) (“Strategy” or the “Company”), the largest corporate holder of bitcoin and the world’s first Bitcoin Treasury Company, today announces financial results for the three-month period ended June 30, 2025 (the second quarter of its 2025 fiscal year).

“In the second quarter and into July, Strategy delivered another period of exceptional execution and growth. We expanded our bitcoin holdings to 628,791 bitcoins, raised over $10 billion through our ATM programs and IPOs, and saw growing institutional and retail demand for our securities. STRC, our short duration, high yield credit instrument, which was our largest ever IPO, demonstrates how we amplify our bitcoin holdings through intelligent leverage. Our overall capital raising activities have resulted in our Bitcoin per Share ('BPS') increasing by 25% year-to-date and as a result we are raising our full year BTC Yield and BTC $ Gain KPI targets to 30% and $20 billion, respectively. These achievements underscore the scale of our Bitcoin treasury strategy and the strength of our capital markets platform. In this release, we are also publishing a capital markets framework, which provides a clear structure for how we intend to raise capital to increase our bitcoin balance sheet and grow long-term shareholder value,” said Phong Le, President and Chief Executive Officer.

“Strategy has achieved a year-to-date BTC Yield of 25%, meeting our full year target well ahead of our initial timeline. As a result, our BTC $ Gain now exceeds $13 billion, and the increase in the price of bitcoin in the second quarter drove second quarter operating income of $14 billion and Q2 diluted EPS of $32.60. These financial results, built upon the scale and performance of our bitcoin balance sheet, are at all-time highs for the company and rank among the most successful quarterly results across the largest public companies in the world. In addition, we are announcing FY2025 guidance for Operating Income of $34 billion, Net Income of $24 billion, and Diluted EPS of $80 per share, based on a BTC price outlook of $150,000 at the end of the year,” said Andrew Kang, Chief Financial Officer.

“With the July IPO of STRC, we introduced the world’s first Treasury Preferred Stock—a variable-rate, monthly dividend security engineered for price stability and designed to deliver short-duration, high-yield to a new class of investors. STRC expands our capital markets platform with an instrument engineered to balance stability and yield, and it reflects our commitment to developing innovative financial products that extend the reach of the Bitcoin economy,” said Michael Saylor, Executive Chairman.

Q2 Financial Summary

  • Operating Income: Operating income for the second quarter of 2025 was approximately $14.03 billion, a 7,106.4% increase year-over-year. Operating income for the second quarter of 2025 includes an unrealized gain on the Company’s digital assets, which was $14.0 billion. This is the second quarterly reporting period in which we have applied fair value accounting. Digital asset impairment losses for the second quarter of 2024, determined in accordance with the cost-less-impairment accounting model we were subject to prior to January 1, 2025, were $180.0 million.
  • Income from Operations, Net Income and Net Income Attributable to Common Stock: Income from operations was $14.03 billion, compared to a loss of $200.3 million in the second quarter of 2024. Net income was $10.02 billion, or $32.60 per common share on a diluted basis, as compared to a net loss of $102.6 million, or $0.57 per common share on a diluted basis, for the second quarter of 2024. Net income attributable to common stockholders was $9.97 billion, compared to a net loss of $102.6 million for the second quarter of 2024.
  • Cash and Cash Equivalents: As of June 30, 2025, the Company had cash and cash equivalents of $50.1 million, as compared to $38.1 million as of December 31, 2024, an increase of $12.0 million.
  • Software Highlights
    • Revenues:
      • Total revenues were $114.5 million, a 2.7% increase year-over-year, compared to the second quarter of 2024.
      • Subscription Services Revenues were $40.8 million, a 69.5% increase year-over-year.
      • Product licenses and subscription services revenues were $48.0 million, a 43.9% increase year-over-year.
      • Product support revenues were $52.1 million, a 15.6% decrease year-over-year.
      • Other services revenues were $14.4 million, an 11.8% decrease year-over-year.
    • Gross Profit: Gross profit for the second quarter of 2025 was $78.7 million, representing a 68.8% gross margin, compared to $80.5 million, representing a gross margin of 72.2%, for the second quarter of 2024.

The tables provided at the end of this press release include a reconciliation of the most directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) to non-GAAP financial measures for the three and six months ended June 30, 2025 and 2024. An explanation of non-GAAP financial measures is also included under the heading “Non-GAAP Financial Measures” below. Additional non-GAAP financial measures are included in Strategy’s “Q2 2025 Earnings Presentation,” which will be available under the “Events and Presentations” section of Strategy’s investor relations website at https://www.strategy.com/investor-relations.

Bitcoin Summary

  • BTC Yield: Achieved BTC Yield of 19.7% in Q2 and 25.0% year-to-date (as of July 29, 2025), compared to the newly revised full year 2025 target of 30%.
  • BTC Gain: Achieved BTC Gain of 88,109 in Q2 and 111,894 year-to-date (as of July 29, 2025).
  • BTC $ Gain: Achieved BTC $ Gain of $9.5 billion in Q2 (based on a bitcoin price of $107,752 as of June 30, 2025) and $13.2 billion year-to-date (based on bitcoin price of approximately $118,000 as of July 29, 2025), compared to the newly revised full year 2025 target of $20 billion.
  • Digital Assets: As of June 30, 2025, the Company’s digital assets were comprised of approximately 597,325 bitcoins, with an original cost basis and market value of $42.4 billion and $64.4 billion, respectively, which reflects an average cost per bitcoin of approximately $70,982 and a market price per bitcoin of $107,752, respectively.
    • During the three months ended June 30, 2025, the Company recorded an unrealized fair value gain on digital assets of $14.0 billion.

Capital Markets Summary

  • The Company received aggregate net proceeds of approximately $6.8 billion during the three months ended June 30, 2025, and additional aggregate net proceeds of approximately $3.7 billion between July 1, 2025 and July 29, 2025, from the following transactions:
    • Common Stock ATM Program: During the three months ended June 30, 2025, the Company received aggregate net proceeds of approximately $5.2 billion through the issuance and sale of 14,225,620 shares of its class A common stock. Between July 1, 2025 and July 29, 2025, the Company received aggregate net proceeds of approximately $1.1 billion through the issuance and sale of an additional 2,433,381 shares of its class A common stock. As of July 29, 2025, approximately $17.0 billion remained available under the May 2025 at-the-market class A common stock equity offering program.
    • STRK ATM Program: During the three months ended June 30, 2025, the Company received aggregate net proceeds of approximately $446.9 million through the issuance and sale of 4,551,460 shares of its 8.00% Series A Perpetual Strike Preferred Stock (“STRK Stock”) under its at-the-market STRK Stock offering program (the “STRK ATM Program”). Between July 1, 2025 and July 29, 2025, the Company received aggregate net proceeds of approximately $71.8 million through the issuance and sale of an additional 579,417 shares of its STRK Stock under the STRK ATM Program. As of July 29, 2025, approximately $20.5 billion remained available for issuance under the STRK ATM Program.
    • STRF ATM Program: In May, 2025, the Company entered into an agreement to issue and sell up to $2.1 billion of shares of 10.00% Series A Perpetual Strife Preferred Stock (“STRF Stock”) pursuant to an at-the-market offering of STRF Stock (the “STRF ATM Program”). Through June 30, 2025, the Company received aggregate net proceeds of approximately $163.1 million through the issuance and sale of 1,566,750 shares of STRF Stock under the STRF ATM Program. Between July 1, 2025 and July 29, 2025, the Company received aggregate net proceeds of approximately $55.8 million through the issuance and sale of an additional 446,005 shares of STRF Stock under the STRF ATM Program. As of July 29, 2025, approximately $1.9 billion remained available for issuance under the STRF ATM Program.
    • IPO of STRD Stock: In May 2025, the Company received net proceeds of approximately $979.7 million through the issuance and sale of 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock ( “STRD Stock”) at a public offering price of $85.00 per share.
    • STRD Stock ATM Program: In July 2025, the Company entered into an agreement to issue and sell up to $4.2 billion of shares of STRD Stock pursuant to an at-the-market offering of STRD Stock (the “STRD ATM Program”). Between July 1, 2025 and July 29, 2025, the Company received aggregate net proceeds of approximately $17.9 million through the issuance and sale of an additional 189,560 shares of STRD Stock under the STRD ATM Program. As of July 29, 2025, approximately $4.2 billion remained available for issuance under the STRD ATM Program.
    • IPO of STRC Stock: In July 2025, the Company received net proceeds of approximately $2.5 billion through the issuance and sale of 28,011,111 shares of STRC Stock at a public offering price of $90.00 per share.
  • STRC Stock Dividend: As contemplated by the prospectus supplement for the IPO of STRC, on July 31, 2025, the Company announced that its board of directors declared monthly cash dividends of $0.80 per share payable on the Variable Rate Perpetual Stretch Preferred Stock (“STRC Stock”). The calculation of the monthly dividend takes into account the dividend accrued from July 29, 2025, the issuance date of the STRC Stock. Payment will be made on August 31, 2025 to stockholders of record of the STRC Stock at the close of business on August 15, 2025.

FY2025 Earnings Guidance:

  • Strategy is announcing forward guidance to provide increased transparency around the combined impact of our Bitcoin holdings and capital markets activity to our results assuming a year-end 2025 Bitcoin price of $150,000:
    • FY2025 Operating Income of approximately $34 billion
    • FY2025 Net Income of approximately $24 billion
    • FY2025 Diluted EPS of approximately $80 per share

This guidance incorporates anticipated proceeds from preferred stock offerings, the application of mNAV-based discipline to common stock issuance, and the resulting growth in Bitcoin holdings.

Strategy bases its assumptions with respect to the fair market value of bitcoin as of December 31, 2025 on, among other things, research analyst reports published by third-parties available to us as of the date of publication of our guidance. Strategy has adopted ASU 2023-08, which requires that Strategy measure its bitcoin holdings at fair value, with gains and losses from changes in the fair value of bitcoin recognized in net income (loss) at each reporting period. As a result, and due to Strategy’s significant bitcoin holdings, Strategy’s earnings results are extremely sensitive to changes in the market price of bitcoin. Strategy can provide no assurance or guarantee as to the price of bitcoin as of December 31, 2025, and as a result Strategy’s actual results may vary materially from its projected results if the market price of bitcoin as of December 31, 2025 varies materially from these assumptions. Strategy undertakes no obligation to update this guidance, other than as may be required by applicable law. Investors are cautioned not to place undue reliance on this guidance.

FY2025 Updated Bitcoin KPI Guidance:

  • Strategy is revising its 2025 Bitcoin KPI targets in light of strong execution and capital markets activity year-to-date, assuming a year-end 2025 Bitcoin price of $150,000:
    • FY2025 BTC Yield Target: Increasing from 25.0% to 30.0%
    • FY2025 BTC $ Gain Target: Increasing from $15 billion to $20 billion

We expect to achieve these targets through preferred stock offerings, disciplined common stock issuance guided by mNAV thresholds, and the resulting expansion of our bitcoin holdings.

Common Stock ATM Guidance

  • mNAV-Based Common Stock ATM Issuance Discipline: Strategy announces it is publishing “mNAV” thresholds (defined below) at which it will utilize its at-the-market offering program for its class A common stock (“Common Stock ATM Program”) to fund the purchase of bitcoin. Strategy will operate its Common Stock ATM Program in line with the following framework:
    • Below 2.5x mNAV: Strategy will not issue common equity below this threshold except to (1) pay interest on debt obligations and (2) fund preferred equity dividends.
    • 2.5x to 4.0x mNAV: Strategy will opportunistically issue common equity to acquire bitcoin.
    • Above 4.0x mNAV: Strategy will actively issue common equity to acquire bitcoin.

Management will review these mNAV thresholds periodically and may update the mNAV thresholds in its sole discretion. The current mNAV is published on strategy.com and in the Strategy app so that investors can track in real time the valuation metrics we use internally.

mNAV represents a multiple of Bitcoin NAV, calculated by dividing Enterprise Value (as defined below) by Bitcoin NAV (as defined below). Although Bitcoin NAV incorporates the label “NAV,” it is not equivalent to “net asset value” or “NAV” or any similar metric in the traditional financial context. Additionally, it is not a measure of the amount by which our enterprise value exceeds net asset value in the traditional financial sense of those terms. Investors should rely on the financial statements and other disclosures contained in our SEC filings. This metric is merely a supplement, not a substitute. It should be used only by sophisticated investors who understand its limited purpose and many limitations.

STRC Dividend Rate Guidance

  • STRC Dividend Adjustment Framework: Strategy also introduces a rules-based monthly dividend recommendation framework for STRC Stock. Strategy’s current intention, subject to change in its sole discretion, is to evaluate dividend rates each month using the five-day volume-weighted average price (VWAP) of STRC Stock for the five trading days prior to the last trading day of the month, as follows:
    • Below $95:00: Recommend a dividend rate increase of 50 basis points or more for the next period.
    • $95.00 - $98.99: Recommend a dividend rate increase of 25 basis points for the next period.
    • $99.00 - $100.99: No change in the dividend rate is anticipated. However, management may use its discretion to recommend a minor increase or decrease of 25 basis points depending on prevailing market and capital conditions.
    • $101.00 and above: Recommend a dividend rate decrease of 25 basis points, or a larger decrease if one-month term SOFR interest rates declined during that month (in each case, subject to the cap on rate reductions described in the Prospectus and Certificate of Designations for the STRC Stock), and/or a follow-on offering of STRC Stock.

All recommended dividend rate changes under this framework are subject to approval by the Company’s Board of Directors, and dividends will only be declared and paid when, as, and if the Board determines such changes are in the best interest of the Company and its stockholders. This structured approach is intended to maintain the trading price of STRC Stock near its $100 per share Stated Amount. There can be no assurance that the recommended dividend adjustments will achieve such intention. Strategy may change or suspend this framework at any time in its sole discretion, consistent with the terms of the STRC Stock.

Strategy Dashboard

Strategy maintains a dashboard on its website (www.strategy.com) as a disclosure channel for providing broad, non-exclusionary distribution of information regarding Strategy to the public, including information regarding market prices of its outstanding securities, bitcoin purchases and holdings, certain KPI metrics and other supplemental information, and as one means of disclosing non-public information in compliance with its disclosure obligations under Regulation FD. Investors and others are encouraged to regularly review the information that Strategy makes public via the website dashboard.

Conference Call

Strategy will be discussing its first quarter 2025 financial results on a live Video Webinar today beginning at approximately 5:00 p.m. ET. The live Video Webinar and accompanying presentation materials will be available under the “Events and Presentations” section of Strategy’s investor relations website at https://www.strategy.com/investor-relations. Log-in instructions will be available after registering for the event. An archived replay of the event will be available beginning approximately two hours after the call concludes.

About Strategy

MicroStrategy Incorporated d/b/a Strategy (Nasdaq: MSTR/STRK/STRF/STRD/STRC) is the world's first and largest Bitcoin Treasury Company. We are a publicly traded company that has adopted Bitcoin as our primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from our operations, we strategically accumulate Bitcoin and advocate for its role as digital capital. Our treasury strategy is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income instruments. In addition, we provide industry-leading AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere. We leverage our development capabilities to explore innovation in Bitcoin applications, integrating analytics expertise with our commitment to digital asset growth. We believe our combination of operational excellence, strategic Bitcoin reserve, and focus on technological innovation positions us as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation.

Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.

Non-GAAP Financial Measures

Strategy is providing supplemental financial measures for (i) non-GAAP loss from operations that excludes the impact of share-based compensation expense, and (ii) non-GAAP net loss attributable to common stockholders and non-GAAP diluted loss per common share that exclude the impacts of share-based compensation expense, interest expense arising from the amortization of debt issuance costs related to Strategy’s long-term debt, gains and losses on debt extinguishment, if any, and related income tax effects. These supplemental financial measures are not measurements of financial performance under GAAP and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate business performance and to help make operating decisions.

Strategy believes that these non-GAAP financial measures are also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis. The first supplemental financial measure excludes a significant non-cash expense that Strategy believes is not reflective of its general business performance, and for which the accounting requires management judgment and the resulting share-based compensation expense could vary significantly in comparison to other companies. The second set of supplemental financial measures excludes the impacts of (i) share-based compensation expense, (ii) non-cash interest expense arising from the amortization of debt issuance costs related to Strategy’s long-term debt, (iii) gains and losses on debt extinguishment, if any, and (iv) related income tax effects. Strategy believes the use of these non-GAAP financial measures can also facilitate comparison of Strategy’s operating results to those of its competitors.

Important Information About KPIs

Bitcoin Per Share (BPS) is a key performance indicator (“KPI”) that represents the ratio between the Company’s bitcoin holdings and its Assumed Diluted Shares Outstanding, expressed in terms of Satoshis, where:

  • “Assumed Diluted Shares Outstanding” refers to the aggregate of our Basic Shares Outstanding as of the dates presented plus all additional shares that would result from the assumed conversion of all outstanding convertible notes and convertible preferred stock, exercise of all outstanding stock option awards, and settlement of all outstanding restricted stock units and performance stock units as of such dates. Assumed Diluted Shares Outstanding is not calculated using the treasury method and does not take into account any vesting conditions (in the case of equity awards), the exercise price of any stock option awards or any contractual conditions limiting convertibility of convertible debt instruments.
  • “Basic Shares Outstanding” reflects the actual class A common stock and class B common stock outstanding as of the dates presented. For purposes of this calculation, outstanding shares of such stock are deemed to include shares, if any, that were sold under at-the-market equity offering programs.
  • A “Satoshi” or a “Sat” is one one-hundred-millionth of one bitcoin, the smallest indivisible unit of a bitcoin.

BTC Yield is a KPI that represents the percentage change in BPS from the beginning of a period to the end of a period.

BTC Gain is a KPI that represents the number of bitcoins held by the Company at the beginning of a period multiplied by the BTC Yield for such period.

BTC $ Gain is a KPI that represents the dollar value of the BTC Gain calculated by multiplying the BTC Gain by the market price of bitcoin. For determining BTC $ Gain QTD and YTD, unless otherwise specified, the Company uses the current market price of bitcoin. For determining BTC $ Gain for a past fiscal year or other past period, the Company uses the market price of bitcoin as of 4:00pm ET as reported on the Coinbase exchange on the last day of the applicable period. The Company uses these market prices of bitcoin for this calculation solely for the purpose of facilitating this illustrative calculation.

The Company uses BPS, BTC Yield, BTC Gain and BTC $ Gain as KPIs to help assess the performance of its strategy of acquiring bitcoin in a manner the Company believes is accretive to shareholders. The Company believes these KPIs can supplement investors’ understanding of how the Company chooses to


Contacts

Strategy
Shirish Jajodia
Corporate Treasurer
ir@strategy.com


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