Strategy MSTR Surges 40% Q2 Led by $14B Bitcoin Gains

Strategy Incorporated (NASDAQ: MSTR), formerly MicroStrategy, continues to impress investors with its Bitcoin-driven gains, posting an estimated $14 billion profit in Q2 2025 largely due to rising Bitcoin prices and new accounting standards that reflect crypto asset valuations on its balance sheet. The company's stock surged over 7% following this announcement, significantly outperforming the S&P 500's 11% rise and reaching highs around $402, while analysts maintain a bullish one-year price target of $530, signaling optimistic growth potential. Despite these gains, Strategy's core software business remains modest, with expected revenue of just $112.8 million for the quarter, underscoring that the company's stock performance is primarily fueled by its massive Bitcoin holdings exceeding 528,000 BTC valued at approximately $43.5 billion. Nonetheless, some investors, including short-seller Jim Chanos, caution that the stock price premium may be unjustified compared to directly owning Bitcoin. Additionally, broader market optimism around crypto-friendly policies under President Donald Trump's administration has supported the rally in cryptocurrency-related stocks, with renewed investor confidence helping Strategy's shares rebound sharply after a recent decline. The company also launched Strategy Mosaic, an AI-powered platform aimed at improving enterprise data integration, although this initiative has not yet driven significant stock momentum compared to its Bitcoin assets.