Strategy (formerly MicroStrategy) expects to book $15.8 billion this quarter when it marks its Bitcoin treasury to market under Accounting Standards Update 2023-08.
Per KPMG, the rule forces companies to carry crypto at fair value and run the change through net income, creating a one-off retained earnings lift for early adopters.
Using Strategy’s 553,555 BTC holdings as of April 28, 2025, the rise from $82,445 (end‐of‐Q1 price) to $111,000 implies:
Δ price = $111,000 – $82,445 = $28,555
Δ BTC holdings = 553,555 BTC
Unrealized gain ≈ 553,555 × $28,555 ≈ $15.81 billion
So, Strategy’s Q2 unrealized gain would be on the order of up to $15.8 billion.
Given that Bitcoin currently trades around $105k, the final Q2 figure will likely be slightly lower but still well above Saylor’s $8 billion estimate.
The revaluation dwarfs the firm’s Q1 legacy software revenue ($111.1 million) and turns a 2024 net loss into what could be the largest single-quarter profit ever posted by a business-intelligence vendor. Because the adjustment is cumulative, analysts tracking the position say the windfall will flow straight into shareholder equity, clearing the final hurdle for potential S&P 500 inclusion later this year.
Bitcoin’s spot price near $105,000 amplifies the accounting gain. Strategy bought another 705 BTC between May 26 and June 1, lifting its stack to 580,955 coins worth just over $60 billion. Per Barron’s, the eight-week buying streak cost about $75 million and pushed the average acquisition price to $70,023.
With equity capital piling up, Chairman Michael Saylor is turning to fixed-income desks. In March, the company sold 8.5 million shares of Series A “Strife” perpetual preferred at $85, raising roughly $711 million. The security pays a 10 percent cash dividend that steps up 100 basis points for every missed payment, capped at 18 percent. The paper is non-callable and ranks senior to common stock, effectively giving yield hunters a Bitcoin-backed coupon without the coin’s day-to-day swings.
Saylor pitched Strife as a Trojan horse for the world’s largest capital pool. The notional value of outstanding over-the-counter derivatives stood at over $600 trillion at the end of 2023. “The bond universe is desperate for real return,” he told investors at a webcast launch, adding that Strife offers “high-performance fixed income with Bitcoin upside.”
Strategy has now issued a new stock, “Stride,” paying 10% cash dividends to continue its Bitcoin acquisition strategy.
If the Bitcoin price holds, the firm’s second-quarter 10-Q could show a profit larger than Oracle’s annual net income, an S&P 500 admission case, and the first steps toward a synthetic Bitcoin bond market big enough to matter even to the $600 trillion notional derivatives complex.
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