Strategy reported record third-quarter operating income of $20.91 billion as bitcoin gains lifted its results. Michael Saylor said a new bitcoin bull market is beginning, while the company moves to daily preferred dividends and a CFO transition.
Strategy Inc. (Nasdaq: MSTR) posted record operating income of $20.91 billion and diluted earnings per share of $44.75 for the third quarter, announced Oct. 29. The bitcoin treasury and enterprise software company recognized $20.91 billion in digital asset gains, compared with $3.89 billion a year earlier.
Operating income measures profit after operating expenses, before interest and income taxes, and Strategy includes bitcoin valuation gains in that figure. Net income totaled $19.53 billion, including $19.12 billion attributable to common stockholders, while revenue declined 3% to $125.4 million.
Founder and Executive Chairman Michael Saylor offered a bullish outlook: "We’re at the beginning of the next bitcoin bull market." Chief Financial Officer Andrew Kang said the company raised $21 billion of equity capital and increased its bitcoin holdings by 26% year-to-date in a challenging bitcoin market.
Treasury reaches 848,517 BTC at a $75,446 average cost
The company’s 848,517-bitcoin treasury cost $64.02 billion, averaging $75,446 per coin, as of Oct. 25. Holdings were valued at $68.90 billion using the Oct. 23 bitcoin price of $81,200. MSTR shares rose 76% during the third quarter, compared with bitcoin’s 43% advance.
However, bitcoin per share moved the other way. BTC Yield, which tracks percentage changes in bitcoin per assumed diluted share, was negative 3.7% year to date. Holdings therefore grew more slowly than that share count, and neither metric measures investment returns.
Daily dividends start Nov. 1 as the CFO steps down
Shareholders approved daily preferred stock dividends on Oct. 28, with accrual for Stretch (STRC), a variable-rate perpetual preferred stock, starting Nov. 1. Dividends will accrue on weekends and holidays, with cash payments potentially combined on business days.
Management maintained STRC’s 12% annual dividend rate to support trading near its $100 stated amount. Strategy bought no bitcoin during Oct. 19-25 and spent $204.9 million on STRC buybacks. It also sold approximately $431.8 million of bitcoin during 2026 to help fund preferred dividends and STRC repurchases.
Kang will step down Nov. 5 and remain an adviser through Dec. 31, while President and CEO Phong Le assumes finance oversight during the transition. Executive Vice President of Operations Reza Virasteh becomes CFO Jan. 1, 2027.
Source: Bitcoin News
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