Strategy’s $21B Quarter Is Its Biggest Ever as Saylor Sees New Bitcoin Bull Run

Bitcoin Gains Lift Operating Profit to a Record

Record operating income of $20.91 billion and diluted earnings per share of $44.75 marked Strategy Inc.’s (Nasdaq: MSTR) third-quarter results, 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; 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.

Chief Financial Officer Andrew Kang stated: “Q3 operating income of $21 billion was the largest ever in Strategy’s history. We’ve also raised $21 billion of equity capital and increased our bitcoin holdings by 26% year-to-date in a challenging bitcoin market.”

Founder and Executive Chairman Michael Saylor offered a bullish outlook:

“We’re at the beginning of the next bitcoin bull market. Banks are embracing bitcoin, bitcoin’s dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average.”

Treasury Expands as Bitcoin Per Share Falls

The company’s 848,517-bitcoin treasury cost $64.02 billion, averaging $75,446 per coin, as of Oct. 25. Year-to-date bitcoin purchases totaled $14.33 billion. Holdings were valued at $68.90 billion using the Oct. 23 bitcoin price of $81,200.

That position represented approximately 4% of bitcoin’s maximum supply of 21 million coins. MSTR shares rose 76% during the third quarter, compared with bitcoin’s 43% advance.

BTC Yield, which tracks percentage changes in bitcoin per assumed diluted share, was negative 3.7% year to date. This share count includes potential shares from convertible securities and equity awards. Holdings therefore grew more slowly than that share count. BTC Gain expresses that change in bitcoin units using beginning-of-year holdings. Its negative 24,947 BTC result reflected per-share dilution. Neither metric measures investment returns.

Daily Dividends Accompany Finance Leadership Changes

Shareholders approved daily preferred stock dividends on Oct. 28, with accrual for Stretch (STRC), a variable-rate perpetual preferred stock, starting Nov. 1. Strife (STRF), Strike (STRK), and Stride (STRD), fixed-rate perpetual preferreds that currently pay quarterly, follow on Jan. 1, 2027. These preferred shares rank senior to MSTR common stock for dividends but are not collateralized by Strategy’s bitcoin. 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. Dollar assets totaled $5.07 billion, providing an estimated 3.4 years of coverage for preferred dividends and interest obligations.

Capital allocation included no bitcoin purchases and $204.9 million in STRC buybacks during Oct. 19-25. Year-to-date repurchases totaled $2.04 billion, including unsettled transactions. Strategy 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, serving as co-principal financial officer alongside Le, who retains responsibility for financial management of the bitcoin strategy.

Strategy reiterated its ambition to become the world’s largest company by market capitalization, outlining a capital strategy built on bitcoin,…