Saylor’s Bitcoin Strategy Delivers $9.97 Billion Quarterly Profit Amid Crypto Surge

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MicroStrategy Inc., led by founder Michael Saylor, posted a record quarterly profit in the second quarter as the value of its extensive bitcoin holdings soared during a period of heightened institutional interest in cryptocurrency.

The company, known for its aggressive bitcoin acquisition strategy, held 597,325 bitcoins as of June 30, purchased at an average cost of $70,982 per token. With bitcoin currently trading around $116,600, Strategy recorded a $14 billion unrealized fair value gain on its digital assets for the quarter. The surge comes as major U.S. banks, payment processors, and other corporations continue to expand their presence in the cryptocurrency sector.

For the three months ending June 30, Strategy reported net income of $9.97 billion, or $32.60 per share, a sharp turnaround from a loss of $102.6 million, or $0.57 per share, during the same period last year. Until late 2024, accounting rules limited the company to recording impairment losses when the price of bitcoin fell below its purchase cost, while gains could only be realized upon sale. A shift in those rules has since allowed unrealized gains to be reflected in earnings.

Since initiating its bitcoin accumulation in 2020, Strategy has financed purchases through a combination of cash reserves, low-cost convertible bonds, and equity sales. The company’s consistent buy-and-hold approach, championed by Saylor, has become a model for several other publicly traded firms looking to position cryptocurrency as a strategic treasury reserve asset.

The trend is expanding beyond bitcoin, with some companies now diversifying into alternative digital assets such as ether. Many are entering the public markets through mergers with special purpose acquisition companies (SPACs),  also known as blank-check firms, to integrate cryptocurrency holdings into equity structures.

Strategy’s stock has reflected the market’s bullish sentiment, rising nearly 39% this year and outpacing bitcoin’s 25% gain over the same period. In 2024, the company’s shares increased nearly fivefold, securing it a place in the Nasdaq 100 index in December.

While volatility remains a key risk in the digital asset market, Strategy’s performance underscores the potential financial impact of a long-term bitcoin-focused treasury policy. As corporate adoption of cryptocurrency broadens, Saylor’s approach continues to influence the evolving relationship between traditional capital markets and blockchain-based assets.