Strategy CEO Phong Le contends the company remains significantly undervalued despite posting a $10 billion Q2 profit, announcing plans to raise $4.2 billion to aggressively expand its Bitcoin holdings.
The declaration follows extraordinary financial results, with operating income surging 7,100% year-on-year to $14 billion in the second quarter. This explosive growth stemmed primarily from Bitcoin fair value accounting gains triggered by cryptocurrency market appreciation.
Strategy currently holds 628,791 Bitcoin valued at $73.3 billion. The company reported a 25% quarterly increase in Bitcoin yield, generating over $13 billion in Q2 gains from its cryptocurrency holdings alone.
To capitalize on this performance, Strategy will raise $4.2 billion through a preferred stock offering dedicated exclusively to purchasing additional Bitcoin. This aligns with the firm’s ’42/42′ accumulation strategy targeting $84 billion in total Bitcoin assets.
Despite these record results, Strategy maintains one of the S&P 500’s lowest profit-to-earnings multiples. CEO Le pointed to this valuation gap as evidence of market underestimation of the company’s Bitcoin-focused business model.
In response to Q2’s strong showing, Le revised full-year Bitcoin performance targets upward to a 30% yield and $20 billion in Bitcoin-related gains, signaling confidence in the continued execution of the firm’s cryptocurrency strategy.