Massive Profits for MicroStrategy; Bitcoin Investment Paying Off
MicroStrategy is enjoying its best quarter ever when it comes to revenue and earnings per share, thanks in part to its Bitcoin investment.
Quick overview
- MicroStrategy has accumulated about 3% of all available Bitcoin and reported a record net income of $10 billion.
- Following a strong earnings call, MicroStrategy's stock rose by 4.34%, with an EPS of $32.60 for the second fiscal quarter.
- The company's investment in Bitcoin has proven successful, as both Bitcoin's value and MicroStrategy's stock performance have improved together.
- MicroStrategy's strategy of investing in Bitcoin as a hedge against inflation appears to be effective, with projections suggesting Bitcoin could exceed $250K by next year.
MicroStrategy (MSTR) has now accumulated about 3% of all available Bitcoin, and the company is riding high on a recent profits statement that showed $10 billion in net income.
After this week’s earnings call, MicroStrategy’s stock is up by 4.34%. For their second fiscal quarter, the company reported an EPS (earnings per share) of $32.60. This is the best performance for a fiscal quarter that the company has ever reported, and their stock is bullish as a result.
MicroStrategy Bets on Bitcoin
MicroStrategy, now known just as Strategy, has famously put its assets into Bitcoin as an investment. That has earned them plenty of criticism, but they have proved the naysayers wrong time and time again as Bitcoin’s value climbs. At the moment, MSTR’s stock is relatively low compared to where it was a month ago, but it is above its 2025 average.
Bitcoin recently surged, moving from $112K up to $116K, and that should help MSTR’s value improve. The two companies are very much tied together, and as Bitcoin performs well, MicroStrategy’s management tends to invest more heavily in the coin. This gives them tremendous liquid assets to work with and creates a partially symbiotic relationship.
What we have seen this year is that as Bitcoin has climbed, so too has MicroStrategy. However, MSTR’s value is also dependent on how well the company performs separate from Bitcoin, and this most recent quarterly report shows MicroStrategy in a good light. We suspect that MSTR’s value will increase throughout August, even if Bitcoin does not perform extremely well.
MicroStrategy has been investing in Bitcoin heavily primarily as a hedge against inflation. While the U.S. inflation level has been remarkably sticky this year, Bitcoin has seen tremendous growth. It would seem that the investment strategy that the company is employing is working out well for them so far, and there are estimates that Bitcoin will reach more than $250K by next year.
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