Strategy Posts $19.53 Billion in Third-Quarter Net Income on Bitcoin Gain
Key Facts
Strategy reported results on October 29 for the third quarter ended September 30, 2026, posting net income of $19.53 billion and diluted earnings per share of $44.75, according to the company’s statement. A year earlier, net income was $2.79 billion and earnings per share were $8.42 in the comparable period. The company attributed a major part of the jump to a fair-value gain on its digital assets, as operating income reached $20.91 billion, compared with $3.89 billion in the third quarter of 2025. The results announcement coincided with the company’s disclosure of a phased transition in the chief financial officer role. After the results were released, MSTR shares fell about 3.5% in after-hours trading on Thursday, according to The Block.
Despite the increases in net income and operating income, Strategy’s revenue fell to $125.4 million in the third quarter from $128.7 million a year earlier, a 3% year-over-year decline, according to its statement. Gross profit was $89.6 million, with a gross margin of 71%. In the third quarter of 2025, the company posted gross profit of $90.7 million and a margin of 70%. The figures show a divergence between revenue and gross profit performance, on one hand, and the large accounting impact of the digital-asset gain on operating income and net income, on the other. In the second quarter of 2026, the company posted an operating loss of $8.33 billion, including an unrealized loss of $8.32 billion on digital assets; the second quarter of 2025, by contrast, recorded operating income of $14.03 billion and an unrealized gain of $14.05 billion on those assets.
Revenue from the core business followed different paths in the second and third quarters of 2026. Revenue was $122.4 million in the second quarter, up 6.9% year over year from $114.5 million, while gross profit was $81.6 million with a margin of 66.6%, according to the company’s filing with the U.S. Securities and Exchange Commission. In the third quarter, revenue fell to $125.4 million from $128.7 million in the year-earlier period. The comparison provides context for the annual revenue decline in the latest quarter, despite the gross margin rising to 71% from 70% a year earlier. The larger changes in net income and operating income, the company said, were tied to the valuation of its digital assets and unrealized gains.
The company continued to expand its bitcoin holdings, saying its balance reached 848,517 bitcoin on October 25, up 26% since the start of 2026, and that it had purchased $14.33 billion worth of bitcoin year to date. It also announced that it had raised $21.23 billion in capital from the start of 2026 through October 25. MSTR shares rose 76% in the third quarter, compared with a 43% increase in bitcoin’s price over the same period, the company said. Executive Chairman Michael Saylor said, "We are at the beginning of the next bitcoin bull market." He added that bitcoin’s price was 21% above its 200-week moving average and that institutional demand had returned. Saylor also linked this view to banks’ adoption of bitcoin and its growing dominance among digital assets, according to the company’s statement.
On financing, Strategy said the notional value of its digital credit stood at $16 billion across 10 listed securities, giving it an 84% market share. Cash and cash equivalents totaled $2.50 billion on September 30, compared with $1.71 billion on June 30. Short-term investments also rose to $3.40 billion on September 30 from $736.1 million at the end of June. The company said it had increased its dollar assets to $5.07 billion as of October 25, a balance that provides 3.4 years of coverage for preferred-stock dividend and interest obligations. These balances place some of the company’s financial resources alongside its digital holdings, while Saylor described growth in digital credit as ongoing. The market-share and coverage figures remain estimates reported by Strategy in its statement.
The management change will take effect on November 5, when Andrew Kang steps down as executive vice president and chief financial officer, while remaining an adviser to the company through December 31, 2026, according to Strategy’s statement. During the transition, Chief Executive Officer Phong Le will take on the principal financial officer duties and oversee finance. On January 1, 2027, Reza Verasteh will become chief financial officer; he currently serves as executive vice president of operations. The transition therefore runs from Kang’s departure to Verasteh’s appointment, with principal financial responsibility temporarily assigned to Le. The company scheduled a webinar to discuss the results on October 29 at about 5:00 p.m. Eastern Time. It said an archived recording of the webinar would be available about two hours after it ended.