The company held a total of 628,791 bitcoins in Q2 and as of July 29th, accounting for 3% of the total bitcoin supply, becoming a leader in the field of bitcoin national treasury companies. Its market value exceeds 112 billion US dollars, ranking it as the 96th largest listed company in the United States. This year, it has successfully launched four listed preferred stock products and raised 18.3 billion US dollars in capital within seven months, accounting for 81% of the total capital raised last year, demonstrating a significant improvement in the speed and efficiency of capital raising. Earnings per share (EPS) results also show progress, demonstrating significant progress in the company's capital raising and bitcoin holding strategy.

The company achieved record GAAP operating revenue and net income in the second quarter, reaching the highest point in the company's history, due to the significant appreciation of Bitcoin and the adoption of new fair value accounting rules. Bitcoin per share earnings (BPS) as a new key indicator, reflects the significant growth in the value of Bitcoin accumulated by the company over the past few years through strategic management and maximizing Bitcoin inventory operations. As of the end of July, the company's cumulative Bitcoin earnings per share had reached 198,543, demonstrating significant value growth of Bitcoin as a strategic asset for the company and increasing shareholder value.

Since August 2020, the company has been adding Bitcoin to its balance sheet every quarter, with the current value of Bitcoin held exceeding $74 billion, at a cost of $46 billion. With the adoption of FASB fair value accounting standards on January 1, 2025, the company recorded a one-time adjustment, increasing total shareholder equity by $12.7 billion. Under the new accounting rules, the first quarter reported $5.9 billion in unrealized losses, but the second quarter realized $14 billion in unrealized fair value gains due to a significant increase in Bitcoin prices. As of the current quarter, the total fair value of Bitcoin has increased to $74 billion, with fair value gains of approximately $6.2 billion for the quarter. Additionally, the company holds $12.3 billion in convertible bonds and $6.3 billion in perpetual preferred stock, providing stable funding for long-term strategic assets.

The company ensures robust asset support for its debt and priority securities with its large holdings of Bitcoin and solid equity base. With a Bitcoin holding of $74 billion, far exceeding $8 billion in convertible debt and preferred equity obligations, and total annual interest and dividend obligations accounting for only 1.6% of total capital raised in the past 12 months, the company demonstrates ample liquidity management and capital raising capabilities. Furthermore, the Bitcoin holdings are sufficient to cover annual preferred stock dividend requirements for over 120 years, showcasing its strong financial cushioning capabilities.

The White House in the United States has shown strong support for cryptocurrency, especially Bitcoin, including establishing a Bitcoin strategic reserve and releasing a positive cryptocurrency policy report. This policy shift is conducive to improving the taxation of crypto assets, increasing acceptance of digital currency, and encouraging more companies to include them in their balance sheets. With the launch of 80 ETFs and a large influx of funds, publicly traded companies have also begun to buy Bitcoin in large quantities, showing a rapid adoption and growth trend of Bitcoin as a reserve asset. Analysts have an average year-end Bitcoin price forecast as high as $168,000, reflecting the industry's optimistic outlook for the future of cryptocurrency.

Technology investors are now turning their attention to Bitcoin, seeing it as the next big thing alongside artificial intelligence, which has attracted a large number of investors into the Bitcoin space. Financial regulatory agencies are increasingly supportive of Bitcoin, including the SEC's positive attitude towards Bitcoin ETFs, relaxing options trading restrictions, and support for the digital assets industry. In addition, guidance from the Federal Housing Administration will promote the institutional adoption of Bitcoin as collateral in the banking industry. The US Congress has passed relevant laws to promote the legalization of Bitcoin, and various states and international governments have also shown a positive attitude towards Bitcoin, promoting its adoption on a global scale.

The encryption industry has been focused on Bitcoin, seeing it as the foundation of the entire encryption economy, driving industry growth. The company's strategic positioning is between traditional finance and the encryption economy, by extracting the asset value of Bitcoin, developing low-risk and high-risk financial products to meet different market demands. For example, ibit, as a packaged product of Bitcoin, provides the investment community with a secure investment form.

The conversation discussed a structured financial product strategy for Bitcoin, aiming to provide balanced investment options for different types of investors in terms of risk and return. By offering diversified products including convertible bonds, preferred stocks, fixed-income stocks, etc., the strategy aims to reduce the volatility of Bitcoin investments while ensuring a certain rate of return. In particular, a product called "Strike" was mentioned, which attracts investors seeking stable income and some growth by providing partial upside potential of Bitcoin and a fixed dividend of 8%. The target market includes growth-seeking investors, commercial real estate investors, hedge funds, and Bitcoin investors, with the overall goal of achieving high returns on Bitcoin investments while controlling risks.

The dialogue provides a detailed introduction to two financial products, Strife and Stride, targeting income and high-yield investors respectively. Strife, as the highest-level long-term high-grade credit product, offers a return rate of 8.7% and high-level payment protection, targeting the $40 trillion capital market. Stride, on the other hand, is positioned as a long-term high-yield credit product with a return rate of 11.9%, suitable for investors seeking long-term high returns, targeting markets such as the $2 trillion high-yield corporate bond market. Both products ensure investors' returns and protection through high-level over-collateralization strategies, demonstrating their competitive advantage in the market.

The conversation discussed a new IPO product called 'Stretch', which is a short-term, high-yield Bitcoin credit product aimed at investors who are willing to take on short-term interest rate risks (one month) and are seeking stable value and returns higher than money market. The product is designed with higher BTC ratings and 6 times excess collateral compared to other products, currently yielding 9.5%. The target market includes $18 trillion in bank accounts and $7.4 trillion in money markets, as well as cryptocurrency companies and investors who believe in Bitcoin but need short-term liquidity. The product, supported by Bitcoin, offers higher returns than regular savings accounts, while meeting the needs of investors who do not want to take on long-term interest rate risks.

The conversation discussed the yield curve of building Bitcoin credit, particularly analyzing BTC credit instruments with different terms, such as short-term instruments with one-month terms and permanent instruments like Strife, Stride, and Strike. With the improvement of company credit and Bitcoin prices, the terms of permanent instruments may be extended, while the terms of one-month instruments remain unchanged. This change reflects the impact of credit spreads on the term structure.

The discussion focuses on issuing perpetual preferred shares with different maturities ranging from 1 to 10 years, as well as utilizing AI technology to create preferred shares with variable monthly dividends, in order to access a capital opportunity of up to 30 trillion US dollars in the medium-term corporate credit market. This new financial instrument not only offers higher than market returns but also significantly improves liquidity and credit strength, with daily trading volumes reaching millions of dollars, increasing liquidity by 50 to 100 times compared to traditional preferred shares.

The company has created innovative digital security financial tools based on digital intelligence and digital capital. These tools offer high yields, liquidity, and over 5 times the amount of high-quality collateral compared to traditional credit instruments, showcasing a significant competitive advantage. It was mentioned in the discussion that even the worst-performing products have a 5x collateral ratio, while the best products can reach up to 9 times, which is extremely rare in traditional credit portfolios.

In the competition with ETFs, we stand out with high yields of 7%-12%, while not charging any fees and providing higher liquidity. We also offer products with different terms to meet diverse needs, showcasing the huge opportunities in the mid-market.

The conversation discussed the role of Bitcoin Doubling (MS Tr) as an investment tool in a portfolio with different levels of liquidity and collateral. The strategy aims to provide investors who believe in the digital capital transformation with 2 to 4 times the return on Bitcoin and volatility, disrupting the traditional business model of the capital market. By comparing the performance of bonds, real estate, gold, and the S&P index, it demonstrated the significant performance of the Bitcoin Doubling strategy in the past five years, with an annual return rate of up to 101%, emphasizing its sustainability and non-accidental nature.

By comparing the investment returns of Bitcoin at different leverage ratios, it is explained how to amplify the rate of return on Bitcoin investments through strategies such as issuing preferred stocks. With an increase in leverage ratio, even if Bitcoin appreciates, the magnification effect on investment returns will also increase. Additionally, improvements in credit conditions and lower interest rates can further increase the magnification effect on returns. Through this strategy, investors can gain higher multiples of returns in the fluctuations of Bitcoin prices.

The dialogue delves into how to optimize the risk and return of investments by adjusting capital structure and utilizing smart leverage under the assumption of zero growth or different growth percentages of Bitcoin. The discussion covers the possibility of theoretically converting Bitcoin debt into equity, as well as how to increase leverage ratios by issuing more preferred equity to achieve 2 to 6 times the performance of Bitcoin under different market outlooks and volatility. Furthermore, the dialogue also addresses how to adjust capital structure to maintain the stability of investments and maximize returns in response to changes in Bitcoin volatility.

MicroStrategy Incorporated (Msgr) plans to attract the largest capital base in the world, including equity investments and debt markets, by converting Bitcoin into strategic securities, providing high returns and profits. In the company's capital structure, the proportion of convertible bonds is small, while preferred securities are targeted at a market worth $90 trillion. It is expected that over the next three years, the company will gradually convert convertible bonds into equity and ultimately build a Bitcoin-backed, tiered capital structure that includes multiple levels of preferred securities, aiming to become the world's largest treasury company. Bitcoin will remain unrestricted, and the company's total capital is expected to reach $112 billion.

The conversation discussed the strategy of optimizing the company's capital structure through holding Bitcoin and utilizing the priority market. The company currently ranks fifth in terms of Bitcoin holdings and is expected to surpass many well-known companies in the future, possibly becoming the largest enterprise in the world in terms of capital base. This goal is primarily achieved through the issuance of high-yield, high-collateral short-term debt, namely preferred equity. Recent successful cases, such as Stretch's IPO, have shown market demand for this product, especially with a significant increase in interest from the retail market. Additionally, the company plans to gradually reduce overall exposure to senior convertible debt, maintain a reasonable collateral coverage ratio, become a leading issuer supporting Bitcoin credit, while ensuring the responsible and transparent implementation of the strategy.

The company has provided guidance for the first time on Bitcoin (BTC) and Generally Accepted Accounting Principles (GAAP), based on a conservative assumption that the price of Bitcoin will reach $150,000 by the end of 2025. It is expected that by the end of 2025, the BTC yield will reach 30%, with BTC revenue of $20 billion, and GAAP operating income is projected to be $34 billion, with a net profit of $24 billion and earnings per share of $80. The company will also use equity issuance more cautiously, especially considering using credit to repurchase shares when the price of Microstrategy falls below its net asset value, in order to increase transparency and shareholder value.

MicroStrategy plans to not issue more equity to purchase Bitcoin when the market-to-net-value (MNV) is below 2.5 times, instead using the funds to pay debt interest, convertible notes, or fund preferred stock dividends. When MN reaches 2.5 to 4 times, the company will issue equity at the right time to acquire Bitcoin, with an expected price between $600 and $1000. When MN exceeds 4 times, meaning the stock price exceeds $1000, the company will more actively issue equity to purchase Bitcoin, ensuring that the equity value does not fall below $1000.

At the end of each month, a recommendation for adjusting the interest rate structure for the following month will be made based on the Volume Weighted Average Price (VWAP) of Stretch for five days. Specific guidance includes: if VWAP is below $95, a suggestion to increase the interest rate by 50 basis points or more; if VWAP is between $95 and $99, a recommendation to increase by 25 basis points; if VWAP is within the target price range of $99 to $101, no changes will be made unless there is a change in the federal funds rate; if VWAP is above $101, consideration will be given to lowering interest rates or issuing future discounts. This is aimed at increasing transparency and reducing uncertainty in interest rate decisions.

A company's GAAP operating revenue target guidance is set at $34 billion, making it the ninth largest operating revenue company in the United States, surpassing well-known companies such as Walmart, AT&T, and Pfizer. However, it is ranked 96th in terms of market capitalization. Despite being ranked 13th in net income in the S&P 500, its price-to-earnings ratio is only 4.7 times, making it possibly one of the most misunderstood and undervalued stocks in the U.S. and even globally. Compared to financial services companies, its projected net income ranking for 2025 is fourth, but its market capitalization ranking is much lower than its net income ranking, indicating the potential undervaluation of its market value.

The conversation delved into a Bitcoin custody company's leading position in the market, demonstrating superior performance compared to competitors through indicators such as BTC/USD revenue. At the same time, it discussed how to reasonably value such companies based on factors such as Bitcoin revenue growth, company size, liquidity, capital management, product innovation, capital structure, management team execution, and investor relations. While the company believes it is currently misunderstood and undervalued by the market, it is hopeful that by increasing transparency and investor relations activities, it can achieve a more accurate market valuation.

The company's current price-to-earnings ratio (P/E) is 4.7 times, far below the average of 24 times for S&P 500 companies, and its potential market is much larger than that of Bitcoin and traditional markets. If the company were to use the same valuation model as the top-performing companies, it could be severely undervalued, with its valuation potentially between 40 billion and nearly 100 billion US dollars. In addition, the company further enhances its market potential and investment value through strategies such as intelligent leverage, options advantages, passive fund inflows, and institutional access, advantages that Bitcoin and Bitcoin ETFs do not possess.

MicroStrategy emphasizes its focus on long-term holding and secure storage of Bitcoin (BTC), refusing to diversify into other cryptocurrencies, while prioritizing long-term value creation and respect, consistency, and transparency for all investors. The company continues to acquire Bitcoin through intelligent leverage mechanisms to achieve positive Bitcoin yields, and leverages innovative fixed income securities to support global adoption of Bitcoin, while maintaining a healthy balance sheet. MicroStrategy is also committed to innovating traditional capital and priority markets through digital transformation and capital tools generated by artificial intelligence.

In this discussion, the main issue raised is whether a single company holding a large amount of Bitcoin will hinder the global adoption of Bitcoin as a store of value and for its other functions as a currency (such as a medium of exchange and unit of value). The discussion also touches on when this situation may come to fruition, and whether it is a question worth considering, leading to a deep exploration of the long-term strategies for companies.

The conversation explored the phenomenon of Bitcoin adoption by accelerating institutions, especially how big institutions like BlackRock are guiding new forms of capital into the Bitcoin ecosystem, thereby increasing the value of Bitcoin. The discussants believe that as the percentage of Bitcoin in the total system increases, its value will grow exponentially, with the price of Bitcoin expected to reach millions or even tens of millions of dollars when it reaches a certain proportion. At the same time, this centralized adoption will also promote the decentralization of Bitcoin, igniting innovative activities in other parts of the world.

The conversation discussed the application of promoting the Bitcoin treasury model in public companies, as well as the potential for success and risks that this strategy may bring, including the impact on capital acquisition and preventing potential malicious actors.

The conversation discussed the impact of more companies holding Bitcoin as a reserve asset on the financial market, emphasizing that this practice can enhance market understanding of Bitcoin and its valuation, thereby driving up the price of Bitcoin. In addition, it also pointed out the cooperation and competition relationships of these Bitcoin treasury companies in different global markets, as well as how they collectively promote the digital transformation of credit assets, counteracting traditional 20th-century credit tools, ultimately forming a global credit ecosystem based on the Bitcoin standard.

The discussion focuses on the successful experiences of the beer market strategy in 2022, and further explores how to deal with the adverse effects that the Bitcoin bear market may bring to the capital market when designing capital structure and leverage ratios, especially considering the restrictions on capital issuance and the pressure of asset-backed products.

The conversation delved into the application of Bitcoin in the capital structure of banks, particularly as a replacement for $500 billion in debt or equity, and how to increase the resilience of capital structure through the structure of preferred shares. In addition, the discussion touched on the impact of extreme price fluctuations of Bitcoin on bank liabilities and dividend payments, as well as comparisons with traditional bank leverage ratios, highlighting the risks and advantages that Bitcoin may bring to the capital structure. Finally, it was mentioned that bank credit ratings may change due to accepting Bitcoin as high-quality collateral.

The discussion focuses on the importance of the volatility of Bitcoin on its equity impact, and how to adjust credit models to adapt to the fluctuations in Bitcoin prices. When the price of Bitcoin stabilizes, increasing leverage can enhance returns, thereby providing more attractive returns in competition with traditional banking. The key lies in educating the traditional financial market to understand the superiority of the credit model supported by Bitcoin, which is far more important than short-term price fluctuations.

The Trump administration has made positive changes in the regulation of Bitcoin. Experts recommend that the next step should be to clarify the classification of digital assets, including when assets can be converted into security tokens, digital commodities, and issuer-less assets, to reduce confusion in the market. In addition, the discussion focused on the time and cost gap between ideal and reality, emphasizing the need to address uncertainty issues in order to realize the industry's potential.

This year, the company successfully launched its first perpetual preferred stock, which received a warm market response, demonstrating continued growth demand from institutions to retail and high-net-worth individuals. Recently, the company's Bitcoin bonds were also listed on Nasdaq, considered one of the most innovative products in the market, indicating further increase in retail and institutional demand in the future. In addition to continuing to deepen its presence in the existing preferred stock market, the company also plans to expand its existing structure to international markets, while building a yield curve for Bitcoin bonds covering products of various maturities to provide the market with more innovative financial instruments and investment opportunities.

The discussion is focused on a company's strategy of achieving growth by leveraging the difference between Bitcoin's annualized return rate and market expectations. This strategy has propelled the company to outperform Nvidia in terms of performance and has garnered wide attention in the market. However, the biggest challenge faced by the company is educating institutional investors to understand the peculiarities of the Bitcoin market and the effectiveness of the company's strategy, especially when Bitcoin prices fluctuate, leading to potential misunderstandings and concerns in the market. The company is taking measures to address this educational burden in order to overcome common cognitive barriers in the Bitcoin sector.

The discussion in the dialogue focused on the importance and challenges of educating investors and bankers on the importance of preferred stocks in supporting Bitcoin since the beginning of this year. By utilizing innovative marketing strategies such as digital content dissemination and participating in investment conferences, the team is committed to increasing people's understanding and acceptance of this new financial product. Furthermore, the discussion also touched on how to develop and package products tailored to different investor groups, and enhance market trust through open-source code and credit models. Ultimately, by providing high returns and educational outreach, the goal is to attract a broader range of investors and drive rapid growth in this field.

The discussion focused on the advantages of Bitcoin as a trustless system, as well as the role of proof of reserve strategies in enhancing investor trust and capital strategy development. Some have suggested that incorporating proof of reserve as part of Bitcoin asset management strategy can increase investor trust.

The conversation revolved around how to transparently handle large-scale digital currency transfers without causing significant market fluctuations and ensuring security. The discussion mentioned a specific case where the transfer of 80,000 Bitcoins caused a huge market fluctuation, emphasizing the importance of trust audits, management, board of directors, and procedures. At the same time, the speakers expressed their willingness to explore more transparent solutions after resolving operational security issues.

The discussion focuses on a US-listed company that offers Bitcoin-related services and products through smart leverage and high-quality dividends, while emphasizing its transparency and internal control system as a long-term operating company. While facing demands for proof of Bitcoin reserves, the company is seeking ways to increase transparency without adding excessive costs or security risks. In addition, the company emphasizes its stability and reliability through quarterly and annual audits, with internal and external data reviews conducted by two major international auditing firms.

The discussion focused on how the strategy team should adjust their thinking on future leverage ratios, especially with Bitcoin and market volatility at multi-year lows. This includes potentially increasing leverage from the traditional range of 20% to 30% to a higher range of 30% to 50%, depending on the shift from bonds to preferred stocks. Additionally, the impact of Bitcoin volatility on strategies was discussed, as well as the company's plans to increase equity market volatility and performance through stock market operations and credit strategy transformations.

In the conversation, a new type of financial product, likened to an 'iPhone moment', was mentioned. This product aims to provide higher returns than a bank account while maintaining lower volatility. The discussants analyzed the advantages and challenges of this product compared to traditional financial instruments such as convertible bonds, emphasizing its potential market demand and unlimited sales potential. They also mentioned the impact of Bitcoin price volatility and institutional investor acceptance on the success of the product.

At the two-hour online seminar, analysts and viewers discussed in depth the application and prospects of Bitcoin in enterprise software strategies. The organizers thanked Bitcoin Magazine and the Bitcoin Enterprise Alliance for co-hosting the event, and expressed gratitude to the thousands of real-time viewers who watched and participated in the discussion. The conference ended with a positive outlook for the future, hoping to meet again soon to explore the potential of Bitcoin in enterprise strategies.