MicroStrategy’s Bold Bitcoin Bet: Why Its CEO Calls It the ‘Most Misunderstood’ Stock Amid Record Profits

Are you tracking the audacious moves of companies integrating Bitcoin into their core strategy? MicroStrategy, under the leadership of CEO Phong Le, is not just investing in Bitcoin; it’s defining a new corporate treasury model. Despite achieving record profits, Le insists the market profoundly misunderstands MicroStrategy’s innovative approach, calling it the ‘most misunderstood’ stock.

MicroStrategy’s Record Profits and Market Misunderstanding

In a quarter that saw MicroStrategy post a company-record $10 billion in profit, its shares paradoxically fell 1.4% in after-hours trading. This dip, despite an astounding 7,100% year-on-year (YOY) increase in operating income to $14 billion, highlights the perplexing market perception that CEO Phong Le refers to as ‘misunderstood and undervalued.’ The firm’s impressive financial results, marking the second period under fair value accounting which includes unrealized gains from Bitcoin (BTC), underscore a unique financial strategy.

The Bold Bitcoin Investment Strategy Unpacked

At the heart of MicroStrategy’s ambitious vision is its aggressive Bitcoin investment strategy. The company announced plans to raise another $4.2 billion through a preferred stock offering, aiming to buy more Bitcoin. This move is part of its upgraded ’42/42′ plan, a long-term goal to accumulate $84 billion worth of the cryptocurrency. To date, MicroStrategy has amassed 628,791 BTC, valued at $73.3 billion, showcasing an unwavering commitment to its digital asset focus.

Decoding MSTR Stock: Valuation vs. Reality

For investors monitoring MSTR stock, the valuation narrative is complex. According to Phong Le, MicroStrategy’s estimated operating income for the 2025 financial year is projected at $34 billion, positioning it as the ninth-largest income among Standard and Poor’s 500 (S&P 500) companies. Despite this, MicroStrategy holds the 96th-largest market cap and one of the lowest profit-to-earnings multiples among S&P 500 firms. Le emphasizes, “We’re capitalized on the most innovative technology and asset in the history of mankind, on the other hand, we’re possibly the most misunderstood and undervalued stock in the US and potentially the world.” This disparity between its financial performance and market valuation fuels the ‘misunderstood’ argument.

Phong Le’s Vision: The ‘Most Misunderstood’ Narrative

Phong Le articulates a clear vision for MicroStrategy, seeing it as a pioneer at the intersection of technology and finance. His assertion that the company is the ‘most misunderstood’ stock is rooted in the market’s apparent struggle to fully grasp the long-term implications and value proposition of a corporate entity heavily invested in Bitcoin. He believes the market is yet to properly price in the strategic advantages of holding a significant portion of its treasury in a decentralized, digital asset, rather than traditional instruments.

Expanding the Corporate Treasury: More Bitcoin on the Horizon

MicroStrategy continues to fortify its corporate treasury with Bitcoin. The company’s innovative approach includes utilizing instruments like the Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to bolster its Bitcoin holdings through what it terms ‘intelligent leverage.’ This strategy was recently demonstrated in July 2025, when MicroStrategy raised $2.5 billion from STRC to acquire 21,021 Bitcoin, marking it as the largest US equity raise of that year. With the new $4.2 billion raise, MicroStrategy could acquire an additional 36,128 Bitcoin at current market prices, further solidifying its position as a leading corporate holder of the cryptocurrency.

MicroStrategy’s Bitcoin Metrics: Raising the Bar

MicroStrategy has been meticulous in tracking its Bitcoin-related performance through key metrics like ‘BTC yield’ and ‘BTC $ Gain.’ BTC yield represents the percentage change ratio between MicroStrategy’s Bitcoin and its assumed diluted shares outstanding, while BTC $ Gain reflects the gain in Bitcoin’s value measured in US dollars. The company reported a 25% increase in BTC yield and over $13 billion in BTC $ Gain for the second quarter, already reaching its initial end-of-year targets. As a result, MicroStrategy is raising its full-year ‘BTC Yield’ and ‘BTC $ Gain’ targets to 30% and $20 billion, respectively. Le noted, “Any company that is able to double their targets throughout the course of the year, you would consider that a success.” This aggressive target revision underscores the success of their Bitcoin investment strategy.

In conclusion, MicroStrategy stands as a fascinating case study in corporate innovation and market perception. Under Phong Le’s leadership, the company is not merely accumulating Bitcoin; it’s challenging conventional corporate finance and investment paradigms. While the market may still be grappling with how to value this pioneering approach, MicroStrategy’s record profits and continued commitment to Bitcoin underscore a bold strategy that could reshape future corporate treasury management. Whether the market eventually aligns with Le’s valuation remains to be seen, but MicroStrategy’s journey continues to be one of the most compelling narratives in the intersection of traditional finance and the burgeoning world of digital assets.