Strategy (NASDAQ: MSTR), formerly known as MicroStrategy, has cleared all the necessary criteria for potential inclusion in the S&P 500, following a blowout Q2 2025 earnings report. The company reported $14 billion in operating income and $10 billion in net income for the quarter, driven largely by gains on its massive bitcoin holdings.
With diluted earnings per share (EPS) coming in at $32.60 and modest revenue growth to $114.5 million, Strategy has demonstrated a financial turnaround that puts it on the map for one of the world’s most influential stock indexes.
Bitcoin Accounting Shift Fuels Explosive Earnings
Earlier this year, Strategy adopted fair-value accounting for its bitcoin assets. This change allowed the company to reflect real-time market gains from its BTC holdings on its income statement. With bitcoin trading above $100,000 during Q2, the company reported massive paper profits.
As of June 30, 2025, Strategy held 597,325 bitcoin — more than any other public company. Its year-to-date BTC yield stood at an impressive 19.7%. The surge in crypto prices and the new accounting method helped push Strategy’s balance sheet into historic territory.
Strong Outlook for 2025 with Bitcoin in the Spotlight
Management now projects $34 billion in operating income and $24 billion in net income for the full year, assuming bitcoin reaches $150,000 by year-end. EPS guidance has been raised to $80, further underscoring confidence in the company’s crypto-heavy strategy.
If included in the September 2025 S&P 500 rebalance, Strategy would become the first bitcoin-treasury company in the index. This would mark a major milestone for the integration of digital assets into mainstream U.S. equity markets and could signal broader acceptance of bitcoin within traditional finance.
Strategy’s transformation from a software firm into a bitcoin-powered financial powerhouse has not only redefined its future—but could soon reshape the S&P 500 itself.
