TLDR
- Strategy (MSTR) has officially qualified for potential inclusion in the S&P 500 after a strong second-quarter performance.
- The company reported $14 billion in operating income and $10 billion in net income for Q2 2025.
- Strategy’s quarterly revenue increased by 2.7% year-over-year, driven by nearly 70% growth in subscription services.
- The adoption of new accounting standards allowed Strategy to recognize unrealized gains on its bitcoin holdings.
- Strategy currently holds 597,325 bitcoin and reported a year-to-date bitcoin yield of 19.7%.
Strategy (MSTR), formerly known as MicroStrategy, has officially qualified for potential inclusion in the S&P 500. The company posted exceptional second-quarter results, marking one of its strongest quarters in history. With substantial profits, Strategy now meets all the necessary requirements for S&P 500 membership, pending the final decision.
Quarterly Results Boost Strategy’s Standing
In the second quarter of 2025, Strategy reported $14 billion in operating income and $10 billion in net income. This performance equates to $32.6 in diluted earnings per share. Revenue for the quarter stood at $114.5 million, a 2.7% increase from the previous year.
The company’s earnings significantly benefited from its bitcoin holdings. Strategy saw massive paper gains, largely driven by bitcoin’s trading value above $100,000. The company reported holding 597,325 bitcoin as of June 30.
Bitcoin and New Accounting Standards Fuel Profitability
Strategy’s adoption of new fair-value accounting standards in January 2025 played a crucial role in boosting profitability. The new standards allowed Strategy to recognize unrealized gains on its digital asset holdings. As a result, the company’s balance sheet improved significantly, which strengthened its earnings.
The firm’s Bitcoin yield reached 19.7% year-to-date. This key performance indicator reflects the change in the ratio between bitcoin held and diluted shares outstanding. With a projected bitcoin price of $150,000 by year-end, Strategy has raised its full-year guidance.
S&P 500 Inclusion Decision Expected in September
Strategy meets all the qualifications for S&P 500 inclusion. The company has a U.S. listing, a market capitalization far exceeding $8.2 billion, and daily trading volumes above 250,000 shares. It also maintains a public float greater than 50% and has posted positive earnings both in the latest quarter and on a trailing twelve-month basis.
The next opportunity for S&P 500 inclusion comes with the September 2025 rebalance. An announcement is expected on September 5, with changes taking effect on September 19. If admitted, Strategy would be the first bitcoin-treasury company in the benchmark index, marking a historic moment for digital assets in the U.S. equities market.
