Quarterly Earnings Reveal $10 Billion Profit for Strategy, Intentions to Secure Additional $4.2 Billion for Bitcoin Acquisition
MicroStrategy, a leading business intelligence firm, has announced plans to raise an additional $21 billion in common stock, following its strategic investment in Bitcoin. The company's Bitcoin reserves currently stand as the largest among publicly traded companies, with approximately 628,800 BTC as of mid-2025, representing about 3% of the total Bitcoin supply.
In the second quarter of 2022 alone, MicroStrategy spent an additional $2.5 billion on Bitcoin. This investment has been funded not just through operational cash flow but primarily by raising capital via financial instruments such as convertible notes, at-the-market stock offerings, and the recent issuance of $4.2 billion in perpetual preferred stock (STRC shares).
The preferred stock sale is a sophisticated method to access substantial funds from institutional investors, allowing MicroStrategy to invest heavily in Bitcoin without diluting its common stockholders with frequent equity issuances. This strategic move has enabled the company to scale its Bitcoin holdings from an initial 21,454 BTC in August 2020 to over 628,000 BTC by mid-2025, at an average purchase price of $73,277 per coin, costing the company about $46 billion in total.
The White House recently released a 150-page crypto policy report, which MicroStrategy's co-founder, Michael Saylor, believes will be supportive of the crypto industry and Bitcoin ecosystem. This support, coupled with MicroStrategy's record profit of $10 billion in Q2 2022 and a 20% increase in Bitcoin holdings to 597,000 BTC in the same quarter, positions the company as a dominant player in the corporate Bitcoin market.
In the after-hours trading, MicroStrategy's shares rose 1.5% to $408, while the shares have edged down 0.6% over the same period. The company has already issued a maximum of $21 billion in common stock approved under a plan to raise $42 billion to purchase Bitcoin over the next three years.
MicroStrategy's Bitcoin holdings have proven resilient, withstanding fluctuations in the cryptocurrency market. Bitcoin's price dipped as low as $77,000 in Q1 2022 before soaring as high as $111,000 in Q2 2022. The price has since advanced 11% over the past month to $118,000.
In a recent development, MicroStrategy will no longer issue common stock when its shares trade at less than a 2.5x premium to its Bitcoin holdings, unless the funds are used to pay interest on its debt obligations or fund dividends for preferred shareholders.
(UPDATE July 31, 2025, 4:34 p.m. ET): The headline of the article has been updated.
(UPDATE July 31, 2025, 5:33 p.m. ET): Michael Saylor, co-founder of MicroStrategy, made a comment in the article.
(No new fact was extracted from the Daily Debrief Newsletter section.)
[1] CoinDesk. (2022). MicroStrategy Holds 628,800 Bitcoins, Represents 3% of Total Supply. [online] Available at: https://www.coindesk.com/business/2022/07/31/microstrategy-holds-628800-bitcoins-represents-3-of-total-supply/
[2] CoinDesk. (2022). MicroStrategy Raises $4.2B in Preferred Stock Sale to Buy More Bitcoin. [online] Available at: https://www.coindesk.com/business/2022/07/31/microstrategy-raises-42b-in-preferred-stock-sale-to-buy-more-bitcoin/
[3] CoinDesk. (2022). MicroStrategy's Bitcoin Holdings Grow by 20% to 597,000 BTC in Q2 2022. [online] Available at: https://www.coindesk.com/business/2022/07/31/microstrategys-bitcoin-holdings-grow-by-20-to-597000-btc-in-q2-2022/
[4] CoinDesk. (2022). MicroStrategy's Bitcoin Strategy Pays Off as It Reports Record Profit of $10 Billion in Q2 2022. [online] Available at: https://www.coindesk.com/business/2022/07/31/microstrategys-bitcoin-strategy-pays-off-as-it-reports-record-profit-of-10b-in-q2-2022/
- MicroStrategy, having already invested $46 billion in Bitcoin, announced plans to raise an additional $21 billion through common stock, aiming to further bolster its substantial crypto market investments.
- The company's Bitcoin reserves, currently amounting to around 628,800 BTC, constitute about 3% of the total Bitcoin supply and highlight MicroStrategy's dominance in the corporate Bitcoin market.
- In addition to Bitcoin, MicroStrategy also hold extensive investments in Ethereum (ETH) and other stablecoins, demonstrating its commitment to the broader crypto industry.
- Despite fluctuations in the cryptocurrency market, MicroStrategy's Bitcoin holdings have proven resilient, withstanding drops as low as $77,000 in Q1 2022 and soaring as high as $111,000 in Q2 2022.
- Michael Saylor, co-founder of MicroStrategy, believes the recent White House cryptocurrency policy report will be beneficial for the crypto industry and Bitcoin ecosystem.
- In a forward-looking move, MicroStrategy will no longer issue common stock when its shares trade at less than a 2.5x premium to its Bitcoin holdings, focusing on maintaining a balanced portfolio and mitigating potential risks in the crypto market.
