MicroStrategy Beats Earnings Estimates. The Stock Rises.

Michael Saylor, MicroStrategy Executive Chairman, pauses as he speaks during a Bitcoin conference in Miami, Fla. (Marco Bello/Getty Images)

Shares of the largest corporate holder of Bitcoin rose after the company beat earnings estimates on Thursday. MicroStrategy reported earnings of $32.60 cents a share and revenue of $114.5 million.

Analysts had expected a loss of 10 cents a share on revenue of $113.5 million.

The huge beat on earnings per share is largely because of changes in accounting rules that allow MicroStrategy to factor in unrealized gains on its digital assets, which were $14 billion for the quarter ending in June.

“These achievements underscore the scale of our Bitcoin treasury strategy and the strength of our capital markets platform,” MicroStrategy CEO Phong Le said in the earnings release.

Investors appear to have expected the beat, pushing the stock up just 1.3% to $407 in after hours trading. MicroStrategy’s stock price is up nearly 40% in 2025 and 165% over the past 52 weeks.

For fiscal year 2025, the company expects an operating income of $34 billion, net income of $24 billion and earnings of $80 a share. It also reported that its Bitcoin holdings are now 628,791—about 3% of the total global supply—at a total cost of $46 billion, or $73,277 a token, year to date. At Bitcoin’s current price, they are valued around $73 billion.

Its Bitcoin yield, which measures the percent change in its ratio of Bitcoins per diluted share was 19.7%, up from 12.2% for the same period last year.

While MicroStrategy has a money-losing software business, its crypto holdings make it something of a bellwether for the crypto industry, which has surged amid support from President Donald Trump. MicroStrategy’ is considered a Bitcoin treasury company, meaning that accumulating the digital tokens is a core part of its business.

The earnings beat follows a surge in the price of Bitcoin, which hit a high of $123,166 on July 14, and is up 26% year to date and 81% from a year ago.

“The more adoption of Bitcoin there is in corporate treasuries, the higher the price goes,” David Waddell, CEO and chief investment strategist with the wealth management firm Waddell & Associates, told Barron’s in June.

That is why the company’s stock price is tied to the value of its Bitcoin holdings, which have grown nearly ninefold since late 2020 by number of tokens and whose value has increased by more than $70 billion over the same period.

While MicroStrategy trades at a steep premium relative to those holdings, its Bitcoin stockpile gives it “a first-mover advantage relative to other companies that are attempting to deploy similar BTC treasury strategies,” Mizuho’s Dan Dolev wrote in a research note earlier this year. He has an Outperform rating on the stock.

In its most recent Bitcoin buy, MicroStrategy announced Tuesday that it used $2.5 billion in proceeds from its offering of variable-rate preferred stock to buy 21,021 Bitcoins for about $117,256 each.

Trump has shown broad support for digital currencies. He has called himself the “crypto president,” has a coin of his own, and his family holds a majority stake in the crypto venture World Liberty Financial. He issued an executive order to establish a strategic Bitcoin reserve in March and recently signed the Genius Act, which creates a regulatory framework for stablecoins pegged to the dollar and backed by reserves.

Write to Anita Hamilton at anita.hamilton@barrons.com