Strategy Reports First Profit in Six Quarters Driven by Bitcoin Surge
Strategy reported its first profit in six quarters, driven by a rise in cryptocurrency values. The company is the largest corporate holder of Bitcoin and capitalized on favorable market conditions, with Bitcoin reaching an all-time high above $123,000.
Key Financial Highlights
- As of June 30, Strategy held 597,325 BTC at an average purchase price of $70,982 per coin.
- The company recorded a $14 billion unrealized fair value gain on its digital assets.
- Strategy posted a net profit of $9.97 billion, or $32.60 per share, for Q2.
- This profit contrasts sharply with a loss of $102.6 million during the same period last year.
Strategic Shifts
- New financial strategy allows recognition of profits from Bitcoin holdings.
- Strategy began accumulating Bitcoin in 2020, using cash and financing through convertible bonds.
- The firm ranks first among public Bitcoin treasury companies.
Market Impact
- MSTR stock has increased nearly 39% this year, surpassing Bitcoin's 25% rise.
- Other companies are adopting similar buy-and-hold strategies for crypto assets.
- Saylor described the current phase as one of "hyper-growth" for Bitcoin as a treasury asset.
The current price of Bitcoin is $115,780, indicating a 6% gap to its record high.
