MicroStrategy Incorporated reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved total revenues of $114.5 million for the quarter, a slight increase from $111.4 million in the same period last year. For the first half of 2025, revenues totaled $225.6 million, down marginally from $226.7 million in the first half of 2024. The company's net income for the second quarter was $10.0 million, a notable recovery from a net loss of $102.6 million in the prior year, while the net income for the first half of 2025 was $5.8 million compared to a loss of $155.7 million in the same period last year.
The filing highlighted a substantial increase in the company's digital asset holdings, with the value of bitcoin held rising to approximately $64.4 billion as of June 30, 2025, up from $23.9 billion at the end of 2024. This increase was attributed to the adoption of Accounting Standards Update (ASU) 2023-08, which requires the company to measure its bitcoin holdings at fair value. The company reported an unrealized gain on digital assets of $14.0 billion for the quarter, which significantly offset operating expenses and contributed to the positive net income.
MicroStrategy's operational metrics showed a shift in its revenue composition, with subscription services revenues increasing by 69.5% year-over-year to $40.8 million for the quarter, driven by conversions from on-premises to cloud-based subscriptions. However, product licenses revenues decreased by 22.7% to $7.2 million, reflecting a decline in the volume and average size of deals. The company also reported a decrease in product support revenues, which fell by 15.6% to $52.1 million, primarily due to customers transitioning to subscription services.
In terms of strategic developments, MicroStrategy has continued to expand its bitcoin holdings, acquiring approximately 149,855 bitcoins in the first half of 2025. The company also announced a series of public offerings for its preferred stock, raising significant capital to support its bitcoin acquisition strategy. As of June 30, 2025, MicroStrategy had a total employee headcount of 1,512, a slight decrease from 1,534 at the end of 2024, reflecting ongoing adjustments in its workforce.
Looking ahead, MicroStrategy's management expressed optimism about the growth of its subscription services and the continued accumulation of bitcoin as a treasury reserve asset. However, the company acknowledged the inherent volatility of bitcoin and the potential impact of regulatory changes on its operations and financial performance. The outlook remains cautious, with management emphasizing the need to navigate market conditions and regulatory landscapes effectively.
About MICROSTRATEGY Inc
MicroStrategy Incorporated is a pioneering technology company focused on enterprise analytics and Bitcoin development. It offers AI-powered analytics software, notably the MicroStrategy ONE platform, to enhance data-driven decision-making for various industries. With a significant Bitcoin acquisition strategy, MicroStrategy aims to leverage its holdings as a treasury reserve asset. The company actively engages in Bitcoin advocacy and innovation, positioning itself uniquely in the digital assets market.
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