Bitcoin-Focused Company Plans to Raise $4.2 Billion to Expand Holdings Under ‘42/42’ Strategy
Strategy Inc., the Bitcoin-focused holding company co-founded by Michael Saylor, posted a record-breaking $10 billion profit in the second quarter of 2025, yet saw its shares dip 1.4% in after-hours trading. Despite the strong results, CEO Phong Le argued that the company remains “the most misunderstood and undervalued stock” in the market.
The firm also announced plans to raise $4.2 billion through its preferred stock vehicle STRC to purchase additional Bitcoin as part of its ambitious “42/42” strategy, which aims to accumulate $84 billion worth of Bitcoin.
Q2 Earnings: Record Profit Driven by Bitcoin Gains
In its Q2 earnings report released Thursday, Strategy reported:
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$10 billion in quarterly profit — the highest in company history
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$14 billion in operating income, representing a 7,100% year-over-year (YoY) increase
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Operating income for the full 2025 fiscal year estimated at $34 billion, placing it 9th among all S&P 500 companies
This marks the second quarter in which Strategy has applied fair value accounting, allowing the firm to include unrealized gains on its Bitcoin holdings in its financial statements.
Strategy’s Market Cap Lags Behind Performance
Despite its earnings success, Strategy remains comparatively undervalued, according to CEO Phong Le. On the earnings call, Le highlighted a discrepancy between earnings power and market valuation:
“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 U.S. and potentially the world.”
Le noted that while Strategy ranks 96th in market cap among S&P 500 companies, its price-to-earnings (P/E) multiple is among the lowest, reflecting a disconnect that may stem from skepticism about the firm’s Bitcoin-first business model.
Bitcoin Metrics Surge as Holdings Grow to 628,791 BTC
Strategy currently holds 628,791 BTC, worth approximately $73.3 billion at current prices. In Q2, the firm’s key Bitcoin performance metrics improved sharply:
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BTC Yield rose 25%, a metric representing the change in Bitcoin holdings per diluted share
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BTC $ Gain reached $13 billion, representing total USD-based gains on Bitcoin holdings
Phong Le announced that the company is raising its full-year targets:
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BTC Yield goal increased to 30%
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BTC $ Gain target increased to $20 billion
“Any company that is able to double their targets throughout the course of the year — you would consider that a success,” said Le.
Raising $4.2 Billion to Buy More Bitcoin
Strategy also revealed plans to raise up to $4.2 billion through the Variable Rate Series A Perpetual Preferred Stock (STRC) offering, with the proceeds earmarked for purchasing more Bitcoin.
“This is part of our intelligent leverage model,” the company stated, noting that STRC is specifically designed to fund Bitcoin acquisitions while appealing to income-oriented investors through monthly board-adjusted dividends.
The announcement follows a $2.5 billion raise via STRC earlier in July, which the company used to purchase 21,021 BTC, marking the largest U.S. equity raise of 2025.
If market conditions hold, the new capital could allow Strategy to acquire an additional 36,128 BTC, expanding its Bitcoin reserves well beyond current targets.
Software Division Sees Modest Growth
While Bitcoin remains Strategy’s primary growth engine, the company’s software and business intelligence division contributed $114 million in revenue for the quarter. This segment includes subscription-based analytics products, though it accounts for a relatively small portion of Strategy’s overall financial performance.
MSTR Share Price Reaction
Shares of Strategy (ticker: MSTR) closed up 1.73% on Thursday at $401.86, but fell 1.4% in after-hours trading, according to Google Finance. The stock has climbed 31.55% year-to-date, a modest rise compared to its 358.55% gain in 2024.
Analysts attribute the muted reaction to a mix of profit-taking, market skepticism, and uncertainty around long-term Bitcoin volatility.
Strategy’s “42/42” Bitcoin Vision
Strategy’s long-term objective is encapsulated in its “42/42” initiative, a strategic blueprint to acquire $84 billion in Bitcoin, roughly symbolic of 42 times leverage on $2 billion in equity. This plan is intended to position the company as the world’s largest institutional Bitcoin holder while offering investors a hybrid equity model tied to crypto asset appreciation.
