MicroStrategy may report record profits in Q3 amid new predictions for Bitcoin.

If Bitcoin (BTC) reaches $119,000 by the end of August, MicroStrategy's ( quarterly earnings report today, Strategy), could set a new record for the highest quarterly profit in the history of a public company. This impressive figure will easily surpass Nvidia's earnings and get closer to Apple's record.

When Bitcoin is widely accepted, it raises the question of whether the big players will adopt the Strategy plan or not?

According to analyst Enmanuel Cardozo from Brickken, it also depends on the strategy of each company. Although the current achievements are very impressive, the long-term health quality of the Strategy is still in doubt.

Can Strategy's Bitcoin strategy attract top technology giants?

Michael Saylor's ambitious Bitcoin plan for Strategy (, previously MicroStrategy), continues unabated despite volatility. Currently, this plan shows no signs of slowing down. With 592,100 Bitcoin on the balance sheet, Strategy is the world's largest holder of BTC.

As the price of Bitcoin continues to rise, the overall income of the Strategy will also increase. This success has prompted some public companies to follow suit. The question is whether other giant companies will also participate and buy Bitcoin.

If Bitcoin closes the third quarter above $119,000 and Strategy has purchased 592,100 Bitcoin at an average price of $70,666, then the estimated quarterly net income of Strategy will be around $28.59 billion.

The most recent Bitcoin purchases by Strategy | Source: StrategyThis figure will surpass Nvidia's highest reported quarterly net income of 22.091 billion USD, making this the largest quarterly income for Strategy and higher than many public tech companies.

Since Strategy uses the fair value accounting method for Bitcoin, it directly reflects these gains in the company's net income. If the price of Bitcoin continues to rise beyond this level, Strategy's income could challenge Apple's quarterly net income, which is currently a record 36.33 billion USD.

Can this unprecedented success attract FOMO from other competitors?

Buy or not to buy

Cardozo expressed excitement about how such a scenario could lead other pioneering companies to adopt Bitcoin more widely.

"With Strategy holding 592,100 BTC, other companies may feel the need to participate, especially as the performance of Strategy is far exceeding traditional metrics," he said.

Some advantages of Bitcoin may even attract companies with massive income, such as Nvidia or Apple.

"There is a reason for major tech companies like Apple and Nvidia to diversify into Bitcoin. Positively, Bitcoin is built as a perfect hedge against the devaluation of fiat currency due to its limited supply and decentralized nature," Cardozo added.

However, strategies like Strategy come with many risks and are not suitable for everyone, even for the Strategy itself.

Financial Health of Strategy

Although the Strategy has recorded significant profits from holding Bitcoin, these profits mainly stem from tax advantages, not from the company's core business operations.

"These profits, driven by fair value accounting, are not cash holdings like the billions of USD that Apple has from iPhone sales, but rather paper profits tied to the price of Bitcoin. Investors and analysts should view this as speculative drive, not as a sign of operational strength, and should focus on cash flow and debt to assess the true business health," Cardozo explained.

Comparing the net income efficiency of the Strategy with other characteristics such as cash flow and debt reveals many potential issues with the company, especially if the price of Bitcoin steadily declines.

Changes in Bitcoin price over the past 3 months | Source: TradingViewAccording to the latest filing by the company with the SEC, Strategy reports that the company's outstanding debt amounts to 8.22 billion USD as of March 2025. The company also has a negative cash flow of -2 million USD, indicating a significant year-over-year decline.

Although this number shows that Strategy has made a large purchase of Bitcoin, it also demonstrates that the company's core software business does not generate enough cash to cover expenses. Strategy stated this in its latest filing.

"The significant decrease in the market value of the amount of Bitcoin held by the company could negatively affect our ability to meet our financial obligations," the statement reads.

The company must issue new debt and equity to raise capital to continue its strategy. It can be said that this plan is quite risky.

Is Bitcoin suitable for all companies?

With the main source of income for Strategy coming from Bitcoin purchases, Cardozo argues that other companies should carefully consider their financial situation before adopting a similar approach.

"Analysts should consider this; a company living on unrealized profits will inherently be riskier. This is an innovative strategy, but for long-term health, especially with traditional businesses, cash-generating activities always outperform paper profits, investors should keep that in mind."

However, as Bitcoin increasingly symbolizes technological innovation, companies will be under pressure to accept this asset. However, they do not need to purchase nearly 600,000 Bitcoin like Strategy.

"I am quite confident that Apple and Nvidia will eventually invest in Bitcoin, especially given their current performance over the past 10 years," Cardozo commented.

"Their treasury could allocate a small portion of 1-5% into BTC. Not only is it protected against inflation, but it is also a branding move as they represent the image of innovation. The increasing popularity of BTC will pressure them to do so."

However, companies like Apple and Nvidia serve different customers. Adding Bitcoin to the balance sheet may cause them to lose some customers.

Questions about sustainability for Bitcoin adopters

Many experts believe that the process of mining Bitcoin is causing serious harm to the environment. Strategy, through its acquisitions of Bitcoin, directly contributes to the high energy consumption associated with this industry.

"The annual energy consumption of Bitcoin is equivalent to that of a medium-sized country and, of course, it conflicts with Apple's 2030 carbon neutrality goals and Nvidia's push for renewable energy," Cardozo said.

These companies risk damaging their image in the eyes of the public by associating with an industry that conflicts with their own Environmental, Social, and Governance (ESG) goals.

"Customers and activists can pressure them, viewing it as a greenwashing action, especially when sustainability is part of their public image... These companies can tie Bitcoin to their ESG goals and maintain their image only if Bitcoin mining becomes more sustainable than the traditional banking system," Cardozo added.

In general, while the appeal of the profits that Bitcoin brings can put pressure on technology giants like Apple and Nvidia, leading them to follow the lead of Strategy, the concerns mentioned above could create more trouble for the company.

Vincent