Behind Strategy’s $22B Bitcoin Profit Is Over $11B in Debt and a Failing Business

• Strategy holds $64.4B in Bitcoin but disclosed $8.24B in debt and $3.4B in preferred stock.
• Its core software business cannot generate cash flow to cover debt or dividends.
• The firm paused BTC purchases in July 2025, the first break since March.

A new SEC filing from Strategy (formerly MicroStrategy) reveals the high-stakes financial reality behind its massive Bitcoin bet. While the company holds a staggering $22 billion in unrealized profit, its core software business is failing to generate cash, and it is servicing over $11 billion in debt. 

As of June 30, 2025, the company holds 597,000 BTC, purchased for $42.4 billion. The current market value of these assets is $64.4 billion, based on recent prices near $108,000 per coin.

The Debt Side of the Ledger

Despite the $22 billion unrealized gain, the company’s latest Form 8-K filing reveals increasing financial stress tied to its Bitcoin-heavy balance sheet.

Strategy reported $8.24 billion in outstanding debt and $3.4 billion in preferred stock liabilities. Annual interest and dividend obligations total more than $350 milli…

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