Strategy Posts $2.8 Billion Q3 Profit as Bitcoin Holdings Fuel Strong Performance
Bitcoin treasury company Strategy (MSTR), formerly MicroStrategy, beats analyst expectations despite shares trading near six-month lows
Quick overview
- Strategy Inc. reported a net income of $2.8 billion for Q3, exceeding Wall Street expectations and causing a 6% rise in shares during after-hours trading.
- The company's earnings per share of $8.42 and revenue of $128.7 million also surpassed analyst predictions, marking a significant recovery from a $340.2 million loss in the same quarter last year.
- Strategy continues to aggressively acquire Bitcoin, holding a total of 640,031 BTC valued at approximately $70.9 billion, while maintaining a positive outlook for future earnings.
- The company raised around $5.1 billion through capital markets initiatives this quarter, contributing to a total of $20 billion raised this year.
On Thursday, Strategy Inc. announced that its net income for the third quarter was $2.8 billion, which was far more than what Wall Street had expected. This caused the company’s shares to rise by about 6% in after-hours trading, even though the stock had been trading at six-month lows during regular trading hours.
The world’s biggest holding of Bitcoin in a company reported earnings per share of $8.42 for the three months ended September 30, which was higher than the $8.15 that analysts had predicted. The company’s revenue of $128.7 million was also higher than the $118 million that analysts had expected. This is a 10.9% rise over the previous year.
MSTR Q3 Financials: A Bitcoin-Driven Surge
The quarterly earnings are a big step up from the $340.2 million loss posted in the same period last year, but they are not as good as Strategy’s record-breaking $10 billion net income in the second quarter of 2025. The company’s operational income for the quarter was $3.9 billion, mostly because of unrealized gains on its huge Bitcoin holdings.
“Strategy made $3.9 billion in operating income, $2.8 billion in net income, and $8.42 per share in diluted EPS in the third quarter of 2025. This was our second quarter in a row with big positive earnings, thanks to our strong Bitcoin balance sheet,” said Andrew Kang, the company’s Chief Financial Officer.
Shares of Strategy have had a hard time lately, dropping more than 7.5% on Thursday to settle at $254.57, their lowest level in more than six months. Bitcoin’s trading range around $110,000 has hurt the stock’s performance. This has pushed the company’s market value to net asset value ratio (mNAV) down to just 1.05x, down from a high of 3.89x in November 2024 after Donald Trump won the election.
MicroStrategy’s Bitcoin Treasury Strategy Amplification
The corporation is still aggressively buying Bitcoin. By September 30, it had added 42,706 BTC in the third quarter, bringing its total to 640,031 BTC. Strategy has 640,808 bitcoins as of October 26, and they cost $47.4 billion in total, or an average of $74,032 per coin. At the moment, the holdings are worth about $70.9 billion on the market, which is about $110,600.
Michael Saylor, the Executive Chairman, talked about how the company has grown beyond its core business intelligence software beginnings. “Strategy has built over $71 billion of transparent, scalable, and homogeneous collateral, which makes us the leading issuer of digital credit,” Saylor stated. He also said that S&P recently gave the company a “B-” credit rating.
The corporation made a profit of 26% on Bitcoin this year, which is equal to $12.9 billion in BTC dollars. Strategy stuck to its aggressive full-year forecast, which calls for $34 billion in operating income, $24 billion in net income, and $80 in diluted profits per share. The corporation thinks that Bitcoin will reach $150,000 by the end of the year, therefore these goals are predicated on that.
During the quarter, Strategy raised around $5.1 billion through a number of capital markets initiatives, such as selling common stock and many types of preferred stock. So far this year, the business has raised $20 billion through its strong capital markets platform.
President and CEO Phong Le said he was sure about the company’s future: “We are actively laying the groundwork for credit securities in international jurisdictions, positioning Strategy to become a dominant credit issuer globally.”
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