Strategy stock: Bitcoin gain drives $20.91 billion Q3 income

Strategy reported record third-quarter profit on October 29, driven by a sharp increase in the fair value of its bitcoin holdings. The company disclosed the results in a Business Wire release covering the three months ended September 30, 2026.

Operating income reached $20.91 billion, compared with $3.89 billion a year earlier. The increase came from a $20.91 billion gain on digital assets, underlining how closely Strategy's reported earnings remain tied to bitcoin prices and accounting changes in its holdings.

Net income rose to $19.53 billion from $2.79 billion, while diluted earnings per share increased to $44.75 from $8.42. Net income attributable to common stockholders was $19.12 billion after $419.6 million in preferred-stock dividends, compared with $2.65 billion after $139.9 million in the prior-year quarter.

Software business remains mixed

The operating business delivered a less supportive signal. Total revenue fell 3 percent to $125.4 million from $128.7 million. Gross profit edged down to $89.6 million from $90.7 million, but gross margin improved to 71 percent from 70 percent.

Subscription services revenue increased to $68.6 million from $46.0 million, but product license revenue declined to $3.8 million from $17.4 million and product support revenue fell to $37.7 million from $51.1 million. The figures show continued progress in subscriptions alongside pressure in older revenue streams.

Strategy said it held approximately 848,517 bitcoins as of October 25, with a market value of $68.90 billion based on the company's stated October 23 bitcoin price. It raised $5.41 billion through sales of MSTR common stock during the quarter and used part of the proceeds to buy 7,218 bitcoin.

Capital structure stays in focus

Management also highlighted $5.1 billion of USD assets and 3.4 years of coverage for preferred-stock dividends and interest. The company repurchased 20,980,508 STRC shares for approximately $2.04 billion, leaving about $956.7 million under its $3.0 billion authorization.

Chief Financial Officer Andrew Kang will step down on November 5, 2026, and remain as an adviser through December 31. Chief Executive Officer Phong Le will oversee the finance organization during the transition, while Reza Virasteh is scheduled to become CFO on January 1, 2027.

Strategy stock traded at 118.75 euros on Lang & Schwarz at 12:04 p.m. CET on Friday, October 30. Investors can follow the real-time quote of Strategy stock.

Strategy's earnings remain highly sensitive to bitcoin prices, while preferred dividends and equity issuance affect the portion attributable to common shareholders. The next scheduled investor event was the company's third-quarter video webinar on October 29, with an archived replay expected through its investor-relations website.

The broader market backdrop remains relevant for technology and digital-asset-linked equities; see current market reports.

Further company-specific developments are available in more news and analyses on Strategy stock.