Bitcoin valuation new system takes effect, Strategy's quarterly profit breaks 10 billion, brokerages set target price at 590 USD.

Due to the rebound in Bitcoin prices and recent accounting changes, the Bitcoin reserve strategy pioneer MicroStrategy ( is expected to realize approximately $14 billion in unrealized gains in the second quarter, joining the ranks of corporate giants such as Amazon and JPMorgan. TD Cowen maintains a buy rating on MSTR with a target price of $590.

Benefiting from the Bitcoin rebound, Strategy's operating profit in the second quarter may exceed 10 billion.

Unlike the more than ten American multinational companies with operating profits exceeding $10 billion, thanks to the rebound in Bitcoin prices and a change in accounting standards for valuing the large amounts of cryptocurrencies held by Strategy, Bloomberg estimates that Strategy's operating profit for the second quarter could reach $14 billion, while its software business revenue is only about $112.8 million.

In the first quarter of this year, Strategy adopted an accounting change that requires valuing the company's current approximately $64 billion in Bitcoin at market prices. Strategy and other companies that purchase Bitcoin are now aware that these unrealized gains and losses can lead to significant fluctuations in earnings. Strategy recorded a historic loss of $4.2 billion in the first quarter, as Bitcoin prices plummeted by 12%.

At the beginning of this season, the company held 528,185 Bitcoins, with each Bitcoin trading at approximately $82,444.71 on March 31, worth over $43.5 billion. According to Bloomberg's calculations, a 30% appreciation in Bitcoin increased the market value of these holdings by over $13 billion, and subsequent purchases brought in more than $600 million in unrealized gains.

Strategy is expected to announce its second quarter results in August.

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TD Cowen maintains a buy rating on MSTR with a target price of 590 USD.

Strategy purchased 69,140 BTC in the second quarter and currently holds 597,325 BTC, exceeding TD Cowen's forecast, and making its mNAV ) the current stock price and its value of held Bitcoin reaching 1.83 based on (.

However, TD Cowen still maintains a buy rating on MSTR with a target price of $590, and predicts that by 2027 its Bitcoin holdings will reach 850,000 BTC, accounting for 4.1% of the total BTC supply.

MSTR's stock price has risen 24% year-to-date, outperforming Bitcoin's 13%. Additionally, its issued special stocks STRK and STRF not only enjoy an annualized yield of over 8%, but their stock prices have also significantly exceeded their redemption price of 100 USD.

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This article discusses the new valuation system for Bitcoin, with Strategy's quarterly profit surpassing 10 billion. Brokers are targeting a price of $590, first appearing in Chain News ABMedia.