Strategy NASDAQ: MSTR reported record third-quarter results as Bitcoin’s price appreciation drove a $20.9 billion fair-value gain on its digital assets, while the company continued expanding its Bitcoin reserves and capital base.
Chief Financial Officer Andrew Kang said Strategy held 848,517 Bitcoin as of the company’s update, following a net addition of 1,666 Bitcoin during the quarter. The company ended September with more than 847,600 Bitcoin valued at about $71 billion, after Bitcoin rose from roughly $58,700 at the beginning of the quarter to about $83,600 at quarter-end.
Strategy reported operating income of $20.9 billion, net income of $19.1 billion and diluted earnings per share of $44.75. Kang said the quarterly operating and net income figures were the highest in the company’s history.
Bitcoin Holdings and Capital Position
Strategy said its Bitcoin and U.S. dollar reserves totaled approximately $74 billion as of Oct. 23, comprising $68.9 billion in Bitcoin and $5.1 billion in U.S. dollar assets. The company said its Bitcoin holdings represent about 4% of all Bitcoin that will ever exist and described itself as the world’s largest institutional Bitcoin holder.
During the third quarter, Strategy raised approximately $5.4 billion of total capital, bringing its year-to-date capital raised to $21.2 billion. Cash and short-term investments rose to just under $5.9 billion at the end of the quarter, including $5.8 billion in total dollar-denominated assets.
Kang said the dollar assets provide more than sufficient liquidity to meet interest and dividend payments and support the company’s Bitcoin treasury operations. Strategy reported about $6.7 billion of convertible debt outstanding and $13.3 billion of preferred stock at notional value. It estimated its net reserve at about $53.9 billion, or roughly $67.3 billion excluding out-of-the-money convertible debt.
The company said its dollar assets covered 3.4 years of current interest and dividend obligations, while its combined Bitcoin and dollar reserves represented 49 years of coverage. Kang said Strategy’s net leverage was approximately 2.4% and its net asset value multiple was 1.15x as of Oct. 23.
Leadership Transition
Kang announced that he will step down as CFO effective Nov. 5 for personal reasons, ending a four-and-a-half-year tenure in the role.
President and Chief Executive Officer Phong Le said he will resume the CFO and principal financial officer roles through the remainder of 2026. Beginning in January 2027, Strategy plans to divide financial oversight between its software and Bitcoin operations.
Reza Virasteh, who currently leads operations and previously worked in finance leadership and financial planning and analysis, will become principal financial officer for the software business. Le will serve as principal financial officer for the Bitcoin business while remaining CEO. Investor relations and product leader CJ and treasury leader Shirish will report directly to Le, he said.
Preferred Dividends and Digital Credit Strategy
Shareholders approved a proposal to move Strategy’s preferred-equity dividends to daily record and payment dates, with 99.3% of votes cast supporting the amendment. Daily dividends for Stretch, or STRC, are scheduled to begin with a Nov. 1 record date and Nov. 2 payment date. Strife, Strike and Stride are expected to follow in January.
The annual dividend amounts will not change. Strategy said the more frequent payments are intended to reduce volatility, improve liquidity, broaden investor demand and make its preferred instruments more compatible with tokenized products and around-the-clock markets.
Le said the company repurchased approximately $2 billion of Stretch during the quarter and had $957 million of remaining repurchase capacity. Stretch closed at $99.99 on the day of the call, near its $100 par value, after trading as low as approximately $75 in late June, according to Le.
Strategy also has a $1 billion repurchase authorization for MSTR common shares, though Le said the company had not used any of that authorization. He said the company’s principal method of acquiring additional Bitcoin going forward would be issuing digital-credit instruments and using the proceeds partly for Bitcoin purchases, while maintaining dollar reserves.
Le said Strategy’s digital-credit market has grown to about $16 billion across six issuers in roughly 22 months. He characterized the company’s preferred securities as an effort to combine Bitcoin-backed reserves with dollar liquidity into products designed for credit investors seeking yield.
Management Outlook on Bitcoin and Tokenization
Executive Chairman Michael Saylor said management believes Bitcoin is entering a bull market, citing growing Bitcoin market dominance, institutional demand, banking adoption and the anticipated 2028 Bitcoin halving. He said Bitcoin exchange-traded funds recorded approximately $6.3 billion of inflows in the third quarter.
Saylor also pointed to what he described as rising bank engagement with digital assets. Strategy’s internal tracking showed banking adoption at 34%, compared with 24% in December 2025 and 9% in December 2023, though he did not provide details on the methodology.
Management expects tokenization to become an important channel for Strategy’s common and preferred securities. Saylor said the company is working with market participants and monitoring regulatory developments, but did not provide a timetable for offering company-issued tokenized securities to U.S. investors.
“The U.S. capital markets have not converged on a tokenizing standard and a set of norms yet,” Saylor said, adding that he expects standards and frameworks to evolve over the next 12 months.
Le said Strategy’s objective remains to double Bitcoin per share over seven years through the use of digital credit. The company reported Bitcoin per share of more than 187,700 satoshis as of Oct. 23, compared with about 56,600 satoshis at the end of 2020.
About Strategy (NASDAQ:MSTR)
Strategy, formerly known as MicroStrategy, Incorporated NASDAQ: MSTR is a global provider of enterprise analytics and mobility software. The company’s flagship platform offers business intelligence, data discovery, and advanced visualizations that enable organizations to analyze large volumes of data and deliver actionable insights. In addition to traditional on-premises deployments, Strategy provides a range of cloud-based services and managed offerings that allow customers to leverage the power of its analytics tools without managing complex infrastructure.
Founded in 1989 by Michael J.
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