<\/p>\n
Strategy\u2019s 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 \u201cmost misunderstood and undervalued stock\u201d in the market.<\/p>\n
Strategy\u2019s operating income rose 7,100% year-on-year (YOY) to $14 billion, the company Michael Saylor co-founded said<\/a> in its earnings statement on Thursday. <\/p>\n It marked the second reporting period in which the firm applied fair value accounting, which includes unrealized gains from Bitcoin (BTC<\/a>).<\/p>\n Strategy also announced<\/a> plans to raise another $4.2 billion worth of shares through one of its preferred stock offerings to buy more Bitcoin, part\u00a0of its long-term goal to buy $84 billion worth of the cryptocurrency under its upgraded \u201c42\/42\u201d plan.<\/p>\n Strategy\u2019s estimated operating income for the 2025 financial year now sits at $34 billion, the ninth-largest income among Standard and Poor\u2019s 500 (S&P 500) companies, Le said in the earnings call.<\/p>\n He said Strategy boasts the 96th-largest market cap and one of the lowest profit-to-earnings<\/a> multiples among firms in the S&P 500.<\/p>\n \u201dWe\u2019re capitalized on the most innovative technology and asset in the history of mankind, on the other hand, we\u2019re possibly the most misunderstood and undervalued stock in the US and potentially the world.\u201d<\/p><\/blockquote>\n Strategy\u2019s\u00a0software arm<\/a>, which covers its business intelligence products and subscription services, brought in $114 million in revenue in the quarter.<\/p>\n Strategy\u2019s common stock, MSTR, closed up 1.73% to $401.86 on Thursday but has fallen 1.4% in after-hours, Google Finance data<\/a> shows. <\/p>\n Strategy, which has accumulated 628,791 BTC worth $73.3 billion to date, noted that its \u201cBTC yield\u201d increased 25% in the second quarter and its \u201cBTC $ Gain\u201d is over $13 billion, already reaching Strategy\u2019s end-of-year targets.<\/p>\n BTC yield represents the percentage change ratio between Strategy\u2019s Bitcoin and its assumed diluted shares outstanding, while the \u201cBTC $ Gain\u201d reflects the gain in Bitcoin\u2019s value measured in US dollars. <\/p>\n As a result, Strategy is raising its full-year \u201cBTC Yield\u201d and \u201cBTC $ Gain\u201d targets to 30% and $20 billion, respectively, Le said. <\/p>\n \u201dAny company that is able to double their targets throughout the course of the year, you would consider that a success.\u201d<\/p><\/blockquote>\n 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.<\/a><\/p>\n The Variable Rate Series A Perpetual Stretch Preferred Stock, tickered STRC, has been one of Strategy\u2019s main investment vehicles to bolster its Bitcoin holdings<\/a> through what the firm describes as \u201cintelligent leverage.\u201d<\/p>\n Related: <\/strong><\/em>Strategy launches Bitcoin stock pegged at $100 to increase treasury<\/strong><\/em><\/a><\/p>\n It comes as Strategy raised $2.5 billion from STRC earlier in July, which it used to purchase 21,021 Bitcoin<\/a>, making it the largest US equity raise so far in 2025.<\/p>\n At current market prices, Strategy could purchase another 36,128 Bitcoin from the $4.2 billion raise.<\/p>\nStrategy misunderstood, undervalued: Phong Le<\/h2>\n
Strategy is raising the bar for its Bitcoin metrics<\/h2>\n
Strategy to raise $4.2 billion to buy more Bitcoin<\/h2>\n