Strategy posts nearly $21 billion in operating profit

Strategy has just published historic quarterly results, driven by the increase in the valuation of its bitcoin reserves. The group posts nearly $21 billion in operating profit in the third quarter of 2026, despite a decline in revenue. This financial performance comes in a context marked by a change in its dividend policy, preferred share buybacks and a change in financial management. Michael Saylor also anticipates a new bullish cycle for bitcoin.

Strategy posts record operating profit thanks to bitcoin

On October 29, Bitcoin treasury company Strategy reported operating profit of $20.91 billion for the third quarter of 2026. This result constitutes a historic record for the company listed on Nasdaq under the symbol MSTR. It far exceeds the $3.89 billion recorded during the same period in 2025. This increase is mainly explained by gains linked to the valuation of digital assets held by the group.

In detail, capital gains on digital assets also reached $20.91 billion. They therefore represent the main driver of this quarterly performance. Net income was $19.53 billion, including $19.12 billion attributable to common shareholders. Diluted earnings per share reached $44.75, confirming the scale of the gains recorded over the period.

However, this increase in profits contrasts with the evolution of turnover. This decreased by 3% year-on-year to reach $125.4 million. Operating income includes variations in the valuation of bitcoins, unlike income from traditional commercial activities. Andrew Kang, Chief Financial Officer, highlighted the unprecedented nature of these results. He also recalled that the company had raised $21 billion in equity capital and increased its bitcoin reserves by 26% since January.

Michael Saylor anticipates a new bull market

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

We are on the cusp of the next bitcoin bull market. Banks are adopting bitcoin, bitcoin’s market share among digital assets continues to grow, institutional demand is returning, 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 that the next bitcoin bull cycle is approaching. According to him, several developments demonstrate a renewed interest in the first cryptocurrency. He cites in particular the growing adoption of BTC by banks and the return of institutional demand.

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

This confidence, however, is based on a situation which directly depends on market fluctuations. Strategy’s accounting gains scale with the value of its bitcoin reserves. An increase in price therefore increases the declared value of these assets and can improve quarterly results. Conversely, a decline in the market can reduce these gains and weigh on future accounts. The announced performance therefore does not guarantee the maintenance of the same level of profits.

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

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

These holdings represent approximately 4% of the maximum bitcoin supply, set at 21 million units. This concentration illustrates the considerable weight of the company’s portfolio in the Bitcoin ecosystem. Furthermore, MSTR stock rose 76% during the third quarter. Over the same period, bitcoin gained 43%, an increase less significant than that of the stock market.

However, the evolution of the number of bitcoins held does not fully reflect the situation of shareholders. The BTC Yield indicator showed a negative variation of 3.7% since January. It measures the evolution of the number of bitcoins in relation to the number of assumed diluted shares. This method also takes into account potential shares from convertible securities and share awards. As the number of shares grew faster than reserves, this indicator fell despite the acquisitions.

Daily Dividends and Share Repurchases Change Capital Allocation

On October 28, Strategy shareholders approved a significant change to the dividend distribution schedule. Daily payments of Stretch (STRC), a floating rate perpetual preferred stock, will begin on November 1. The other three preferred securities, Strife (STRF), Strike (STRK) and Stride (STRD), will follow on January 1, 2027. These instruments benefit from priority over common stocks regarding dividend distributions.

Dividends will continue to accumulate during weekends and holidays. However, cash payments may be consolidated during business days. Management also maintains STRC’s annual payout rate at 12%. This decision aims to support the stock price around its par value of $100. At the same time, the company had $5.07 billion in dollar assets, covering approximately 3.4 years of preferred dividends and interest payments.

The allocation of capital has also evolved in recent times. Between October 19 and 25, Staretgy purchased no bitcoin and dedicated $204.9 million to STRC redemptions. Since January, these transactions have reached $2.04 billion, including transactions not yet settled. Strategy also divested approximately $431.8 million worth of bitcoin in 2026 to help fund preferred dividends and buybacks. These movements show that cash management no longer relies solely on BTC acquisitions.

A change of financial director planned for January 2027

The publication of quarterly results is also accompanied by a change in financial management. Andrew Kang will step down as CFO on November 5. However, he will retain an advisory role with the company until December 31. This period should ensure the continuity of financial operations during the transition. The group has already appointed its successor to take over at the start of next year.

Phong Le, currently Chairman and CEO, will oversee Strategy’s financial activities during this transitional period. Reza Virasteh, Executive Vice President of Operations, will officially take over as CFO on January 1, 2027. He will then serve as co-CFO alongside Phong Le. The latter will notably retain responsibility for financial management linked to the group’s bitcoin strategy.

This change comes as Strategy must manage several priorities simultaneously. It continues to manage its digital reserves while organizing the financing of its distributions to preferred shareholders. The financial transition must also support buyback operations and cash flow needs. The next results will make it possible to measure the evolution of these different positions. They will also give new indications on the effects of dividend policy and the valuation of the digital wallet.

The coming months will therefore be decisive in measuring the company’s ability to maintain its financial performance. The evolution of the price of bitcoin, the cost of distributions and capital dilution will remain essential factors. The group will also have to demonstrate that its reserves and financial resources can support its commitments. Despite its record third quarter profit, Strategy remains closely exposed to variations in the cryptocurrency market.