Strategy Reports $19.5 Billion Q3 Profit Driven by Bitcoin Gains
Strategy, the corporate entity formerly known as MicroStrategy, has reported a remarkable net income of $19.53 billion for the third quarter of 2023. This figure represents a substantial increase from the $2.79 billion reported for the same period last year, primarily driven by a $20.91 billion gain in the value of its Bitcoin holdings.
The company currently holds 848,517 BTC, acquired at an average cost of $75,446 per Bitcoin. As Bitcoin trades near $80,120, the results highlight Strategy's significant reliance on the cryptocurrency's price fluctuations. The reported earnings reflect the carrying value of Bitcoin, rather than cash flow generated from operations.
Financial Performance Overview
- Operating income reached $20.91 billion, up from $3.89 billion a year earlier.
- Diluted earnings per share were reported at $44.75, compared to $8.42 a year prior.
- Quarterly revenue was $125.4 million, a decrease of 3% from $128.7 million in Q3 2022.
Despite the impressive net income, Strategy's shares fell approximately 2.5% in after-hours trading following the announcement. The company has also been active in managing its Bitcoin assets, purchasing 7,218 BTC for about $588.1 million and selling 5,552 BTC for approximately $348.6 million during the quarter.
Future Outlook
Looking ahead, Strategy's Executive Chairman Michael Saylor anticipates the onset of another Bitcoin bull market, citing increased institutional adoption and demand for Bitcoin-related financial products. Additionally, the company has made significant strides in repurchasing preferred stock and expanding its cash reserves, with $5.07 billion in US dollar assets now available to support its financial obligations.
In a leadership transition, CEO Phong Le will assume the role of CFO starting November 5, while Reza Virasteh is set to take over as CFO in January 2027.
Updated 22:31 UTC
New Facts from MicroStrategy's Q3 Report
- MicroStrategy, now known as Strategy, reported a record operating profit of $21 billion for Q3 2026, entirely attributed to paper gains from its Bitcoin holdings.
- Despite the profit, Bitcoin per share fell by 3.7% this year, indicating that each share is backed by less Bitcoin than at the beginning of the year.
- Strategy recorded a $20.91 billion gain on its Bitcoin holdings, resulting in a net income of $19.53 billion, equating to $44.75 per share.
- The company raised $21.23 billion in 2026, primarily through new share sales, and sold $431.8 million of Bitcoin to fund dividends and buybacks.
- Strategy spent $2.04 billion on buying back its preferred stock, STRC, and established a $5.07 billion reserve to cover preferred dividends and interest for 3.4 years.
- Weekly Bitcoin purchases decreased by 84% earlier this month due to prioritization of buybacks over Bitcoin accumulation.
- CEO Phong Le emphasized the company's commitment to restoring the health of STRC in the earnings release.
- Chief Financial Officer Andrew Kang is set to leave on November 5, with operations chief Reza Virasteh taking over on January 1.
- Shares of Strategy closed down 2.4% at $141.62 before the results and fell an additional 0.8% in after-hours trading.
- Strategy aims to lead a market for digital credit, with preferred stocks offering daily dividends starting November 1.
Updated 23:30 UTC
New Facts from Strategy's Q3 2026 Report
- Strategy posted a record operating income of $20.91 billion for Q3 2026, primarily driven by gains from its bitcoin holdings.
- Net income for the quarter was $19.53 billion, equating to $44.75 per diluted share, a significant increase from $2.79 billion a year earlier.
- The company holds 848,517 bitcoins, valued at $68.9 billion as of October 23, when bitcoin was trading at $81,200.
- Strategy increased its bitcoin holdings by 26% year-to-date, despite a challenging market environment.
- Total revenue for the quarter fell 3% year-over-year to $125.4 million, below analyst expectations of $127.2 million.
- Strategy's bitcoin per share metric has decreased, with a negative yield of 3.7% for the year, indicating each share now holds less bitcoin than at the start of the year.
- The company has sold approximately $431.8 million of bitcoin this year to fund preferred dividends and stock buybacks.
- Strategy raised $21.23 billion in capital in 2026, including $5.41 billion from its at-the-market program during Q3.
- 20,980,508 shares of STRC were repurchased for $2.04 billion, averaging $97.39 per share, below the stated amount of $100.
- Shareholders approved a transition to daily dividends starting November 1, 2026, with other preferred stocks following on January 1, 2027.
- Strategy's dollar reserves now total $5.07 billion, covering 3.4 years of dividend and interest obligations.
FAQ
What was Strategy's net income for Q3 2023?
Strategy reported a net income of $19.53 billion for the third quarter of 2023.
How much Bitcoin does Strategy currently hold?
Strategy currently holds 848,517 BTC, acquired at an average cost of $75,446 per Bitcoin.
What was the operating income for Strategy in Q3 2023?
The operating income for Strategy in Q3 2023 reached $20.91 billion, up from $3.89 billion a year earlier.
Why did Strategy's shares fall after the earnings announcement?
Strategy's shares fell approximately 2.5% in after-hours trading following the announcement of their earnings.
What leadership changes are happening at Strategy?
CEO Phong Le will become CFO starting November 5, while Reza Virasteh is set to take over as CFO in January 2027.
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