Strategy Q3 profit reaches $19.5 billion on bitcoin gain

Strategy Inc (MSTR) said in a filing on Oct. 29 that it earned $19.53 billion in net income for the third quarter of 2026, a figure that includes a $20.91 billion gain on its digital assets. The company’s shares fell 1.5% in after-hours trading as of 4:36 p.m. ET, from a regular-session close of $141.67.

Here’s how the company did:

• Diluted EPS: $44.75 vs. $8.42 a year earlier
• Revenue: $125.4 million vs. $128.7 million a year earlier
• Operating income: $20.91 billion vs. $3.89 billion a year earlier
• Net income attributable to common stockholders: $19.12 billion vs. $2.65 billion a year earlier

Total revenues fell 3% from the third quarter of 2025. Gross profit was $89.6 million, a 71% gross margin, against $90.7 million and a 70% margin a year earlier.

Net income attributable to common stockholders reflected $419.6 million of dividends on preferred stock.

According to its SEC filings, net income swung from a profit of $2.79 billion in the third quarter of 2025 to a loss of $12.44 billion in the fourth quarter of 2025.

Bitcoin and capital

Cash and cash equivalents were $2.50 billion at Sept. 30, up from $1.71 billion at June 30. Short-term investments were $3.40 billion, compared with $736.1 million at June 30.

As of Oct. 25, the company held about 848,517 bitcoins, with an original cost basis of $64.02 billion and a market value of $68.90 billion. The market price was about $81,200 as of Oct. 23.

The company received net proceeds of about $5.41 billion from its at-the-market offering program in the third quarter, and about $58.7 million from Oct. 1 to Oct. 23.

It repurchased 20,980,508 shares of STRC, its preferred stock, for about $2.04 billion at an average price of $97.39 per share, a 2.6% discount to the $100 stated amount. About $956.7 million remains under its $3.0 billion repurchase program.

Shareholders approved daily dividends on Oct. 28. STRC moves to daily dividends starting Nov. 1, 2026, and STRF, STRK and STRD start Jan. 1, 2027.

Chief Executive Officer Phong Le said: “Daily dividends are a natural step toward the tokenized, 24/7/365 financial system. Digital Credit is being built for that world, and Strategy intends to lead it.”

CFO transition

Andrew Kang, Executive Vice President and Chief Financial Officer, will resign effective Nov. 5, 2026, for personal reasons, the filing said, and not because of a disagreement with the company. He will stay on as a non-executive advisor through Dec. 31, 2026.

Reza Virasteh, currently Executive Vice President of Operations, will become Executive Vice President and Chief Financial Officer on Jan. 1, 2027, serving as co-principal financial officer with Chief Executive Officer Phong Le. His base salary will rise to $500,000.

Kang will receive a lump sum payment of $883,400 and six months of COBRA premium coverage, valued at about $20,000, subject to a general release of claims.