MicroStrategy Q2 Profit $10B, $4.2B Bitcoin Buy Plan
MicroStrategy reported a record $10 billion net profit in Q2, driven by a 7,100% year-on-year jump in operating income to $14 billion. The gain stemmed from unrealized Bitcoin (BTC) mark-to-market rises. CEO Phong Le called MicroStrategy “misunderstood and undervalued.” The firm holds 628,791 BTC (worth $73.3 billion) and saw its BTC yield increase 25% this quarter, with $13 billion in valuation gains. To fund further buys under its upgraded “42/42” plan, MicroStrategy announced a $4.2 billion preferred-share issuance. It has already raised $2.5 billion this month to acquire 21,021 BTC. Full-year targets include a 30% BTC yield and $20 billion in Bitcoin gains. These moves may reshape investor sentiment toward MicroStrategy and Bitcoin equities.
Bullish
MicroStrategy’s strong Q2 results and its $4.2 billion preferred-share issuance to fund further Bitcoin purchases signal continued institutional demand. In the short term, this boost in buying power can drive upward pressure on Bitcoin prices by tightening supply and enhancing market sentiment. Over the long term, the firm’s high-yield targets and large-scale accumulation under fair-value accounting reinforce Bitcoin’s role as a strategic asset, supporting sustained bullish momentum.