Strategy CEO Phong Le has called his company’s stock “the most misunderstood and undervalued” on the market, despite posting an impressive $10 billion profit in the second quarter. Le’s comments came after the Bitcoin-holding firm reported a staggering 7,100% year-on-year increase in operating income to $14 billion, driven by Bitcoin’s value appreciation.
Le emphasized that while Strategy’s operating income for 2025 is expected to hit $34 billion, the company’s market cap remains low relative to its profitability, with one of the lowest profit-to-earnings multiples in the S&P 500. Despite the company’s strong financials, Strategy’s shares fell 1.4% in after-hours trading following the earnings announcement.
Strategy plans to raise $4.2 billion for Bitcoin purchases
Strategy announced plans to raise $4.2 billion through a preferred stock offering to buy more Bitcoin as part of its ongoing strategy to increase its holdings. The funds will be used to purchase additional Bitcoin under its upgraded “42/42” plan, which aims to acquire $84 billion worth of Bitcoin over the long term.
Currently, Strategy holds 628,791 BTC, valued at $73.3 billion, and its “BTC yield” and “BTC $ Gain” have already surpassed year-end targets, prompting the company to raise its full-year targets for both metrics.
Bitcoin holdings continue to drive growth
Strategy’s Bitcoin strategy has been a major driver of its growth, with the company’s holdings yielding 25% growth in the second quarter alone. The company also reported a significant $13 billion gain in Bitcoin value, helping drive up its overall performance. Strategy aims to further enhance its Bitcoin holdings with the additional capital raised, making it one of the largest players in the market.
CEO Phong Le remains confident in the company’s long-term vision for Bitcoin and believes that the ongoing acquisitions will continue to position Strategy as a leading player in the space.