Business intelligence firm Strategy, spearheaded by Michael Saylor, stands to report unrealized gains exceeding $13 billion from its substantial Bitcoin holdings in the upcoming second-quarter results.
The company disclosed its Bitcoin treasury stood at 528,185 BTC, valued at $43.5 billion, as of March 31. By late June, with the cryptocurrency’s market appreciation, the value of this hoard surged to $56.3 billion, generating an estimated $12.8 billion in unrealized gains.
This massive paper profit vastly overshadows the performance of Strategy’s core enterprise software division. That segment is expected to generate roughly $112.8 million in revenue for the same quarter.
Strategy bolstered its Bitcoin position in Q2 through additional acquisitions. The average purchase price across new additions was approximately $97,900 per BTC, contributing $640 million in unrealized gains. These new buys were financed through capital raised via debt and equity offerings, including preferred stock.
Founder Michael Saylor highlighted ‘Bitcoin yield’ – tracking the leveraged upside versus the cost of capital – as a key metric, signaling the asset’s critical role in the company’s financial standing.
Despite a slight 6% dip in Strategy’s share price recently, largely tied to Bitcoin volatility, the stock has climbed over 170% in the past year. This robust growth underscores significant investor interest and confidence in the company’s aggressive Bitcoin accumulation strategy, even as its traditional software results pale in comparison.