Strategy Inc. (MSTR) announced impressive third-quarter financial results, reporting a net income of $2.8 billion and diluted earnings per share of $8.42. This dramatic improvement, which included operating income of $3.9 billion (a reversal from a loss last year), is primarily due to the unrealized appreciation of its Bitcoin (BTC) holdings. The company benefited from new fair value accounting rules implemented in January 2025.
Key Financial and Corporate Highlights:
- BTC Performance: The company reported a "BTC Yield" of 26% and "BTC $ Gain" of $12.9 billion year-to-date, with Bitcoin trading around $110,600.
- Outlook: CEO Phong Le and CFO Andrew Kang reaffirmed ambitious full-year 2025 targets, including $20 billion in BTC dollar gains and $34 billion in operating income, projections based on an assumption that Bitcoin reaches $150,000 by year-end.
- Capital & Credit: Strategy has raised $20 billion year-to-date through various capital markets instruments. Executive Chairman Michael Saylor highlighted the recent B- credit rating from S&P as a means to expand market access.
- Software Business: The core software division posted $128.7 million in revenue, an increase of 10.9% year-over-year, with subscription services growing significantly by 65.4%.
- Stock & Securities: The stock closed Thursday at $254.57, reflecting a 33% drop over the last six months due to concerns about volatility. However, shares climbed 5.71% to $269.10 in after-hours trading following the positive earnings. The company also announced an increase in the dividend rate for its STRC variable-rate preferred stock to 10.50% for November.
As the world's largest corporate holder of Bitcoin, Strategy Inc. currently owns about 640,808 BTC, valued at $70.9 billion as of October 26, acquired at an average cost of $74,032 per coin.
October 2025, Cryptoniteuae