Strategy Reports $2.8 Billion Profit as Bitcoin Holdings Surge Past 640,000 BTC

Strategy Inc. (Nasdaq: MSTR) delivered a strong third-quarter performance with net income of $2.8 billion and diluted earnings per share of $8.42, according to Q3 financial results released Thursday.

The Tysons Corner, Virginia-based company, which bills itself as the world's largest corporate holder of Bitcoin, now owns approximately 640,808 BTC valued at $70.9 billion as of October 26. The holdings were acquired at an average cost of $74,032 per bitcoin, representing a total cost basis of $47.4 billion.

The company's operating income reached $3.9 billion for the quarter, a dramatic reversal from a $432.6 million operating loss in the same period last year. The gains stem primarily from unrealized appreciation on Strategy's Bitcoin position, made possible by new fair value accounting rules that took effect in January 2025.

Strategy has raised $20 billion year-to-date through various capital markets instruments, including common stock and multiple classes of preferred shares. The company achieved what it calls a "BTC Yield" of 26% and "BTC $ Gain" of $12.9 billion so far this year, based on Bitcoin trading around $110,600.

CEO Phong Le reaffirmed the company's full-year targets of $20 billion in BTC dollar gains and 30% BTC Yield. CFO Andrew Kang maintained guidance for $34 billion in operating income, $24 billion in net income, and $80 diluted EPS for fiscal 2025, projections that assume Bitcoin reaches $150,000 by year-end.

S&P recently assigned Strategy a B- credit rating, which executive chairman Michael Saylor said should expand the addressable market for the company's securities.

Strategy's core software business generated $128.7 million in revenue, up 10.9% year-over-year, with subscription services showing particular strength at 65.4% growth.

The company's stock closed Thursday at $254.57, down 33% over the past six months as investors assess the volatility inherent in digital asset treasury strategies. Following the earnings release, shares climbed 5.71% to $269.10 in after-hours trading.

Strategy continues to expand its suite of preferred stock offerings, including its STRC variable-rate perpetual preferred, which carries a dividend that adjusts monthly based on trading price. The company announced a 25-basis-point increase in the STRC dividend rate to 10.50% for November.

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