Strategy reported $20.91 billion in operating income for the third quarter on Thursday, with the full amount coming from a $20.91 billion gain on digital assets.
The company carries its bitcoin at fair value, so the gain reflected a higher bitcoin price at the end of the quarter rather than cash generated by the business. Excluding that item, operations posted a loss of about $2.6 million. On the earnings call, CFO Andrew Kang described it as a record $20.9 billion of operating income.
Operating loss remained for the first nine months
For the nine months ended Sept. 30, Strategy still reported an operating loss of $1.89 billion after bitcoin losses in the first and second quarters.
Quarterly net income came to $19.53 billion. After preferred dividends, $19.12 billion was attributable to common stockholders, or $44.75 per diluted share.
Bitcoin buying slowed while the company sold part of its holdings
Strategy added 7,218 BTC in the third quarter, down from 85,296 BTC in the second quarter. It also sold 5,552 BTC to fund $239.9 million of preferred dividends and $108.6 million of STRC repurchases.
The company raised $5.41 billion by selling MSTR common stock.
On the call, CEO Phong Le said the primary way to acquire bitcoin is by issuing digital credit, with MSTR issuance coming perhaps if the mNAV starts to expand aggressively and the company sees an opportunity.
Le also said STRC, which fell below par in late spring and dropped to about $75 at the end of June, closed at $99.99 on Thursday after roughly $2 billion of buybacks. He said $957 million remains authorized for repurchases.
Executive Chairman Michael Saylor said it is a general reasonable expectation that the company will return STRC to par within four months of any future slip.
CFO transition disclosed on the call
Kang said on the call that he is leaving on Nov. 5 for personal reasons, a detail that was not included in the company release.
According to the release, Le will serve as principal financial officer for the rest of 2026. Starting Jan. 1, 2027, Reza Virasteh, Strategy’s executive vice president of operations, will become CFO and co-principal financial officer alongside Le.
Le described the arrangement as a split: Virasteh will cover software, while Le will oversee the bitcoin business and remain CEO.
Kang also said daily preferred dividends, approved by 99.3% of votes cast, will begin with STRC’s Nov. 1 record date.
