Despite this impressive performance, shares dipped 1.4% after hours, which prompted CEO Phong Le to call it the “most misunderstood and undervalued stock.” The firm is pushing forward with its aggressive Bitcoin acquisition plan, and aims to purchase $84 billion in BTC through even more capital raises. Strategy’s market positioning is stark—ninth in operating income among S&P 500 firms but ranked 96th by market cap. Meanwhile, Saylor joined calls for a clear crypto regulatory taxonomy, very similar to other industry-wide demands for legal clarity as the US prepares to debate the Digital Asset Market Clarity Act in September.
Strategy the Most Misunderstood Stock?
Strategy, the Bitcoin-focused company that was co-founded by Michael Saylor, reported a record $10 billion in profit for the second quarter of 2025, yet its shares slipped 1.4% in after-hours trading. CEO Phong Le defended the company’s position by calling it “the most misunderstood and undervalued stock in the market.”
Strategy stock price over the past 24 hours (Source: Google Finance)
Operating income surged an eye-popping 7,100% year-on-year to $14 billion, fueled in part by the firm’s adoption of fair value accounting, which includes unrealized gains from its Bitcoin holdings. Strategy holds 628,791 BTC, which is now valued at approximately $73.3 billion, and reported a 25% increase in its BTC yield. This metric compares its Bitcoin holdings to its assumed diluted shares. Additionally, the company saw a $13 billion gain in BTC value.
In a bold move to increase its crypto treasury even more, Strategy announced plans to raise $4.2 billion via its Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC. The capital will be used to buy more Bitcoin as part of the company’s “42/42” plan to accumulate $84 billion worth of the cryptocurrency. This follows a recent $2.5 billion raise through STRC earlier in July, which funded the purchase of 21,021 BTC. At current prices, the new raise could add another 36,128 BTC to Strategy’s balance sheet.
Phong Le pointed out that Strategy now ranks ninth in estimated operating income among S&P 500 companies, yet only holds the 96th-largest market cap and has one of the lowest P/E ratios in the index. He argued that these disparities prove just how undervalued the market perceives Strategy to be.
Despite modest revenue from its software business arm—$114 million for the quarter—Strategy is doubling down on its Bitcoin-centric strategy by raising its full-year targets for BTC yield and dollar gain to 30% and $20 billion, respectively. According to Le, “Any company that is able to double their targets throughout the course of the year, you would consider that a success.”
Michael Saylor Also Pushes for Crypto Clarity
Strategy's Michael Saylor also recently added his voice to the growing calls for the United States to establish a clear legal framework for digital assets. During Strategy’s second-quarter earnings call, Saylor placed a lot of emphasis on the need for a formal crypto taxonomy that will define the distinctions between tokenized securities, digital commodities, and digital assets without issuers. “It will be beneficial to the market if they nail down the digital assets taxonomy,” he said, mentioning the regulatory ambiguity that continues to hamper innovation and clarity across the industry.
Michael Saylor
The push for clarity is taking place during a time of pressure from crypto leaders and increasing momentum in Washington. The White House Working Group on Digital Asset Markets recently urged regulators to move faster when it comes to establishing rules around custody, trading, and token issuance.
SEC Chair Paul Atkins acknowledged that regulatory hurdles are driving tokenization innovation overseas, but also pointed out that US companies are “lined up at our doors” seeking approvals. Additionally, Atkins indicated that the SEC will offer regulatory relief where appropriate to ensure that the US stays competitive in the digital asset landscape.
Speech from Paul Atkins (Source: SEC)
Congress is now preparing to review the Digital Asset Market Clarity Act of 2025 in September, a bill that Saylor believes could unlock massive potential for businesses to participate in blockchain-based financial systems. He envisioned a future where “40 million businesses could issue a token in four hours for $40,” which drastically lowers the barrier to on-chain finance.
Robinhood is already capitalizing on this trend. CEO Vladimir Tenev revealed an aggressive push into tokenizing private market assets. Tenev said the goal is to democratize access to high-value investments like private equity, traditionally reserved for institutional players. The company already issued tokens in Europe tied to firms like OpenAI and SpaceX.
However, these moves did already attract some regulatory scrutiny, including a legal inquiry in Lithuania and criticism from OpenAI, which stated that Robinhood’s token has no affiliation with its actual equity. Overall, both companies and regulators are working hard to define the rules that could shape the future of finance.
