Behind Strategy’s $22B Bitcoin Profit Is Over $11B in Debt and a Failing Business
2025-07-10 16:46:49
Main Idea
Strategy (formerly MicroStrategy) holds $64.4B in Bitcoin with $22B in unrealized profit but faces $11.64B in debt and preferred stock, while its core software business fails to generate positive cash flow.
Key Points
1. Strategy holds 597,000 BTC purchased for $42.4B, now valued at $64.4B ($108,000 per coin), yielding $22B in unrealized profit.
2. The company disclosed $8.24B in debt and $3.4B in preferred stock, raising financial concerns despite Bitcoin gains.
3. Strategy's core software business does not generate positive cash flow, forcing reliance on debt and equity markets for funding.
4. The company paused Bitcoin purchases in July 2025, the first break since March 2024, though it has not sold any BTC.
5. New accounting rules (ASU 2023-08) require fair-value reporting of digital assets, potentially increasing earnings volatility.
Description
Strategy holds $64.4B in Bitcoin but disclosed $8.24B in debt and $3.4B in preferred stock. Its core software business cannot generate cash flow to cover debt or dividends. The firm paused BTC purchases in July 2025, the first break since March. A new SEC filing from Strategy (formerly MicroStrategy) reveals the high-stakes financial reality behind its massive Bitcoin bet. While the company holds a staggering $22 billion in unrealized profit, its core software business is failing to generate cas...
Latest News
- Bitcoin Sets New All-Time High Above $116.5K, Fueled by Institutional Demand2025-07-11 04:03:26
- Behind Strategy’s $22B Bitcoin Profit Is Over $11B in Debt and a Failing Business2025-07-10 16:46:49
- SaruTobi, the First iOS Game Where You Can Earn Bitcoin2025-07-10 15:41:55
- Polygon Dominates Crypto Micropayments with Over 50% Market Share2025-07-10 15:26:04
- USDC Is Coming to Jack Ma-backed Ant Group’s $1 Trillion Blockchain Network2025-07-10 15:09:34