Strategy CEO calls it ‘most misunderstood’ stock amid record profit
Main Idea
Strategy CEO Phong Le claims the company is the 'most misunderstood and undervalued stock' despite record profits and significant Bitcoin holdings, with plans to raise $4.2 billion to buy more Bitcoin.
Key Points
1. Strategy posted a company-record $10 billion in profit in Q2, with operating income rising 7,100% year-on-year to $14 billion.
2. CEO Phong Le stated the company is undervalued, with a low profit-to-earnings multiple despite being the ninth-largest income among S&P 500 companies for the 2025 financial year.
3. Strategy's software arm generated $114 million in revenue, while its common stock (MSTR) closed up 1.73% but fell 1.4% in after-hours trading.
4. The company holds 628,791 BTC worth $73.3 billion, with a 25% increase in 'BTC yield' and over $13 billion in 'BTC $ Gain' in Q2, prompting raised full-year targets.
5. Strategy plans to raise $4.2 billion through a preferred stock offering to purchase more Bitcoin, following a previous $2.5 billion raise in July used to buy 21,021 BTC.
Description
Strategy CEO Phong Le says the market still misunderstands and undervalues its Bitcoin play, as it posted $10 billion profit in the second quarter and plans to raise $4.2 billion to buy more.
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