Strategy adds $21B in Bitcoin value during Q2 but faces $4B tax hit

Strategy, the largest corporate holder of Bitcoin, expanded its digital asset portfolio by $21 billion in the second quarter of 2025, driven largely by BTC’s sharp price increase.

According to the Michael Saylor-led firm, Bitcoin surged from $82,445 to $107,752 between April and June, pushing its unrealized gains on its BTC holdings to $14.05 billion.

Of that, $13.4 billion came from previously acquired Bitcoin, while $700 million was attributed to coins bought during the quarter.

In addition to the unrealized gains, Strategy said it purchased 69,140 BTC during the second quarter for approximately $7 billion.

Strategy Bitcoin Data fro Q2 (Source; Strategy)

As a result, its total Bitcoin holdings had risen to 597,325 BTC by June 30, up from 528,185 BTC at the end of Q1. This helped push its BTC holdings’ market value from $43.5 billion to $64.4 billion.

Meanwhile, the Bitcoin gains also triggered significant tax consequences. Strategy reported a $4.04 billion deferred tax expense in Q2, raising its total deferred tax liability to $6.31 billion.

$4.2 Billion STRD offering

To support further Bitcoin acquisitions, Strategy launched a preferred stock offering targeting up to $4.2 billion in capital through the sale of STRD shares.

The company stated that proceeds would primarily go toward BTC purchases and potentially support dividend payments on its Series A Perpetual Strife and Series A Perpetual Strike shares.

According to the STRD prospectus, shareholders will only gain board representation if regular dividends are paid. Despite this condition, institutional interest in the offering has been strong.

Crypto analyst Jesse noted that the demand for Strategy’s preferred shares reflects increasing institutional appetite for Bitcoin exposure with lower volatility. He described the offerings—STRF, STRK, and STRD—as long-duration, income-generating products with minimal direct correlation to BTC’s price.

Jesse added that trading activity in these instruments has surged, reaching 40 times the typical volume seen in comparable traditional markets. According to him, this structure enables Strategy to issue new shares at a premium while increasing its BTC-per-share ratio as market yields compress.

Strategy Preferred Stock Offering Performance Since Their IPO (Source: Strategy)

Notably, each preferred class has performed strongly since launch, with Strategy positioning them as key vehicles in the evolution of credit markets toward blockchain-based finance.

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