Strategy posts nearly 21 billion dollars of operating profit

Strategy has just published historic quarterly results, driven by the increase in the valuation of its bitcoin reserves. The group reports nearly 21 billion dollars of operating profit in the third quarter of 2026, despite a decline in its revenues. This financial performance occurs in a context marked by an evolution in its dividend policy, repurchases of preferred shares, and a change in financial management. Michael Saylor also anticipates a new bitcoin bullish cycle.

Strategy signs a record operating profit thanks to bitcoin

On October 29, the treasury company of Bitcoin Strategy announced an operating profit of 20.91 billion dollars for the third quarter of 2026. This result is a historic record for the Nasdaq-listed company under the symbol MSTR. It far surpasses the 3.89 billion dollars recorded during the same period in 2025. This growth is mainly explained by gains related to the valuation of the digital assets held by the group.

In detail, capital gains on digital assets also reached 20.91 billion dollars. They therefore represent the main driver of this quarterly performance. Net profit stood at 19.53 billion dollars, of which 19.12 billion were attributable to common shareholders. Diluted earnings per share reached 44.75 dollars, confirming the magnitude of gains recorded over the period.

However, this profit growth contrasts with the evolution of revenue. It decreased by 3% year-on-year to reach 125.4 million dollars. Operating income includes valuation changes of bitcoins, unlike income from traditional business activities. CFO Andrew Kang highlighted the unprecedented nature of these results. He also recalled that the company had raised 21 billion dollars in equity and increased its bitcoin reserves by 26% since January.

Michael Saylor anticipates a new bullish market

On the occasion of the results publication, Michael Saylor delivered an optimistic reading of the market situation:

We are on the dawn of the next bitcoin bull market. Banks are adopting bitcoin, bitcoin’s market share among digital assets continues to grow, institutional demand is back, and bitcoin’s price is 21% above its 200-week moving average.

Michael Saylor, founder of Strategy. Source: Businesswire.

The founder and executive chairman of Strategy believes the next bitcoin bull cycle is approaching. According to him, several developments show a renewed interest in the first cryptocurrency. He notably cites the increasing adoption of BTC by banks and the return of institutional demand.

The executive also highlights the growth of bitcoin’s market share among digital assets. This development strengthens, in his view, the cryptocurrency’s position compared to other assets in the sector. Saylor also recalled that its price was 21% above its 200-week moving average. This technical indicator is among the elements he uses to support his analysis. His statements thus accompany a particularly favorable financial publication for the group.

However, this confidence relies on a situation that directly depends on market fluctuations. Strategy’s accounting gains evolve with the value of its bitcoin reserves. A price increase thus raises the declared value of these assets and can improve quarterly results. Conversely, a market decline can reduce these gains and weigh on future financial statements. The announced performance therefore does not guarantee the maintenance of the same profit level.

Strategy holds 848,517 bitcoins, nearly 4% of the maximum supply

As of October 25, 2026, Strategy held exactly 848,517 bitcoins in its reserves. Their value amounted to 64.02 billion dollars, based on an average acquisition price of 75,446 dollars per unit. Since the beginning of the year, cumulative purchases represented 14.33 billion dollars. With a reference price of 81,200 dollars as of October 23, this reserve even had an estimated valuation of 68.90 billion dollars.

These holdings represent about 4% of the maximum bitcoin supply, fixed at 21 million units. This concentration illustrates the considerable weight of the company’s portfolio in the Bitcoin ecosystem. Moreover, the MSTR stock recorded a 76% increase during the third quarter. Over the same period, bitcoin gained 43%, a smaller increase than that of the stock price.

Nevertheless, the evolution of the number of bitcoins held does not fully reflect shareholders’ situation. The BTC Yield indicator showed a negative variation of 3.7% since January. It measures the evolution of the number of bitcoins relative to the assumed diluted number of shares. This method also takes into account potential shares from convertible securities and stock awards. Since the number of shares increased faster than the reserves, this indicator declined despite the acquisitions.

Daily dividends and share repurchases modify capital allocation

On October 28, Strategy’s shareholders approved an important change in the dividend distribution schedule. Daily payments of Stretch (STRC), a perpetual preferred share with variable rates, will begin November 1. The three other preferred shares, Strife (STRF), Strike (STRK), and Stride (STRD), will follow on January 1, 2027. These instruments have priority over common shares for dividend distributions.

Dividends will continue to accumulate during weekends and holidays. However, cash payments can be grouped on business days. Management also maintains the annual distribution rate of STRC at 12%. This decision aims to support the stock price around its nominal value of 100 dollars. In parallel, the company held 5.07 billion dollars of dollar-denominated assets, covering about 3.4 years of preferred dividends and interest payments.

Capital allocation has also evolved during the recent period. Between October 19 and 25, Strategy bought no bitcoins and spent 204.9 million dollars on STRC repurchases. Since January, these operations reached 2.04 billion dollars, including unsettled transactions. Strategy also sold about 431.8 million dollars worth of bitcoins in 2026 to help finance preferred dividends and buybacks. These moves show that cash management no longer relies solely on BTC acquisitions.

A change of chief financial officer planned for January 2027

Alongside the quarterly results publication comes a change in financial leadership. Andrew Kang will leave his CFO position on November 5. However, he will retain an advisory role with the company until December 31. This period is intended to ensure continuity of financial operations during the transition. The group has already appointed his successor to take over early next year.

Phong Le, currently CEO, will oversee financial activities during this transitional period for Strategy. Reza Virasteh, executive vice president of operations, will officially become CFO on January 1, 2027. He will serve as co-CFO alongside Phong Le. The latter will retain responsibility for financial management related to the group’s bitcoin strategy.

This change occurs while Strategy must manage multiple priorities simultaneously. It continues managing its digital reserves while organizing the financing of distributions to preferred shareholders. The financial transition must also accompany buyback operations and cash needs. Upcoming results will measure the evolution of these different areas. They will also provide new insights on the effects of dividend policy and digital portfolio valuation.

The coming months will be decisive to measure the company’s ability to maintain its financial performance. The evolution of the bitcoin price, distribution costs, and capital dilution will remain essential factors. The group will also need to demonstrate that its reserves and financial resources can support its commitments. Despite its record third-quarter profit, Strategy remains closely exposed to cryptocurrency market fluctuations.