Business intelligence firm MicroStrategy has announced plans to significantly expand its Bitcoin holdings from the current 3% to 7% of the total supply, capitalizing on a record-setting quarterly profit. The company reported a net income of $10 billion in Q2 2025, marking its first profitable quarter following previous losses.
Currently holding approximately 628,791 BTC, MicroStrategy intends to increase its holdings to 1.5 million BTC. This expansion strategy is bolstered by Bitcoin’s performance contributing $13.2 billion in year-to-date gains for the company. The firm maintains a notably bullish stance on Bitcoin as a core treasury reserve asset.
MicroStrategy employs multiple funding mechanisms for acquisitions, utilizing stock issuances, debt instruments, and newly introduced yield-bearing preferred perpetual stock series. The firm aims to mitigate shareholder dilution via a policy limiting stock sales when its modified net asset value (mNAV) exceeds 2.5x. Its STRC perpetual stock series raised $2.5 billion in capital, facilitating purchases of over 21,000 BTC.
Financial analysts at Benchmark endorsed MicroStrategy’s trajectory with a buy rating and $705 price target. The assessment acknowledges the company’s evolution beyond Bitcoin adoption alone, highlighting its innovative corporate treasury framework as a distinctive market differentiator.