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Strategy 8-K Report, Financial Results (Jul 31, 2025)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed July 31, 2025
Period End
July 31, 2025
In the record · 2016–202610-K1110-Q338-K265

MSTR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 265 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’20Jul ’20
  2. Material agreement8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.

Strategy (filed as MicroStrategy Incorporated d/b/a Strategy) reported record second-quarter 2025 results, driven almost entirely by a $14.0 billiona unrealized gain on its bitcoin holdings under fair value accounting.

Income from operations was $14.03 billionb and net income was $10.02 billion, or $32.60 per diluted share, compared with a net loss of $102.6 million in the second quarter of 2024. Total revenues were $114.5 million, up 2.7% year-over-year, while gross margin declined to 68.8% from 72.2%. Cash and cash equivalents were $50.1 million at June 30, 2025.

The company held 597,325 bitcoins at June 30, 2025, with a cost basis of $42.4 billionc and a market value of $64.4 billion. Strategy raised approximately $6.8 billion in net proceeds during the second quarter and a further approximately $3.7 billion from July 1 through July 29, 2025, through common stock ATM programs and preferred stock offerings, including the IPO of STRC stock at $90.00 per share. The company issued FY2025 guidance of approximately $34 billion operating income, $24 billion net income and $80 diluted EPS, assuming a year-end 2025 bitcoin price of $150,000, and raised its FY2025 BTC Yield target to 30% and BTC $ Gain target to $20 billion.

The filing also sets out an mNAV-based framework for common stock issuance and a rules-based monthly dividend framework for STRC stock, and announces monthly cash dividends of $0.80d per STRC share payable August 31, 2025. The filing states that Strategy's earnings are highly sensitive to bitcoin price changes and that actual results may vary materially from guidance.

02—Key points

Key Highlights

  1. Q2 2025 net income of $10.02 billion ($32.60 diluted EPS) was driven by a $14.0 billion unrealized gain on digital assets, versus a net loss of $102.6 million in Q2 2024.
  2. Total revenues were $114.5 million, up 2.7% year-over-year, while gross profit was $78.7 million, a 68.8% gross margin versus 72.2% a year earlier.
  3. Bitcoin holdings reached 597,325 bitcoins at June 30, 2025, with a cost basis of $42.4 billion and a market value of $64.4 billion.
  4. Year-to-date BTC Yield was 25.0% as of July 29, 2025, and the FY2025 BTC Yield target was raised from 25% to 30%; the BTC $ Gain target was raised from $15 billion to $20 billion.
  5. Net proceeds of approximately $6.8 billion were raised in Q2 2025 and approximately $3.7 billion from July 1 to July 29, 2025, including about $2.5 billion from the STRC IPO at $90.00 per share.
  6. FY2025 guidance calls for approximately $34 billion operating income, $24 billion net income and $80 diluted EPS, assuming a year-end 2025 bitcoin price of $150,000.
  7. Monthly cash dividends of $0.80 per share were declared on STRC stock, payable August 31, 2025 to holders of record on August 15, 2025.

03—Questions

Frequently Asked Questions

  1. Why did Strategy report such a large net income in Q2 2025?

    The company applies fair value accounting to its bitcoin holdings under ASU 2023-08, so the $14.0 billion unrealized gain on digital assets in the quarter flowed directly into operating income and net income. Its core software business reported a much smaller contribution, with segment net income of $30.4 million.

  2. How much capital did Strategy raise and how was it used?

    The company received approximately $6.8 billion in net proceeds in Q2 2025 and about $3.7 billion from July 1 to July 29, 2025, through common stock ATM programs and preferred stock offerings. The filing states that these proceeds were used to purchase bitcoin, with Q2 purchases funded by $5.19 billion from common stock ATM sales, $979.7 million from the STRD IPO, $163.0 million from STRF ATM sales and $438.0 million from STRK ATM sales.

  3. What are the key forward-looking targets and how sensitive are they to bitcoin prices?

    Guidance for FY2025 is approximately $34 billion operating income, $24 billion net income and $80 diluted EPS, based on a $150,000 bitcoin price at year-end 2025. The filing states that results are extremely sensitive to bitcoin prices and that actual results may vary materially if the year-end price differs from this assumption. The company gives no assurance on the year-end price.

  4. How will common stock issuance be governed going forward?

    Strategy published an mNAV-based framework for its class A common stock ATM program. It will not issue common equity below 2.5x mNAV, except to pay debt interest and preferred dividends. It will issue opportunistically between 2.5x and 4.0x mNAV and actively above 4.0x mNAV. The company may change these thresholds at its discretion.

  5. How will STRC dividend rates be set?

    The company intends to review STRC dividend rates monthly using the five-day VWAP before month-end. A VWAP below $95.00 implies a recommended increase of at least 50 basis points, $95.00 to $98.99 implies a 25 basis point increase, $99.00 to $100.99 implies no change, and $101.00 or above implies a 25 basis point decrease or larger. All changes are subject to board approval and may be changed or suspended by the company.

04—Continue

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