news 
Strategy CEO Calls It ‘Most Misunderstood’ Stock as Q2 Profit Hits $10B and Bitcoin Plans Expand
The CEO of Strategy, Phong Le, has recently described the company as “most misunderstood and undervalued stock” in a recent earnings call. This statement comes after the release of Q2 profit figures that have surpassed expectations, with a whopping $10 billion in profits.
In his address to investors, Le emphasized that Strategy’s operating income has seen an impressive 7,100% year-on-year increase, amounting to $14 billion. The company attributes this growth to its decision to adopt fair value accounting, which includes unrealized gains from Bitcoin.
As a result of these figures, the CEO believes that Strategy holds the 96th-largest market capitalization in the S&P 500 and one of the lowest profit-to-earnings multiples.
Strategy’s software division contributed $114 million in revenue during Q2. The company’s common stock (MSTR) closed at $401.86 on Thursday before declining by 1.4% after hours, according to Google Finance.
It is worth noting that Strategy has acquired a staggering 628,791 BTC valued at approximately $73.3 billion. The firm reported a 25% increase in its BTC yield for Q2, a metric that tracks Bitcoin holdings relative to diluted shares outstanding. In light of these results, Strategy has increased its full-year targets to a 30% BTC yield and $20 billion BTC gain.
Strategy CEO Phong Le stated during the call that “any company that is able to double their targets throughout the course of the year would consider that a success.”
In a move that further highlights Strategy’s commitment to Bitcoin, the company plans to issue and sell up to $4.2 billion in shares through its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) in order to purchase more cryptocurrency.
This new raise could potentially fund the acquisition of 36,128 BTC at current market prices.
Source: coinchapter.com
