TLDR
- Strategy posts $2.8B net income as Bitcoin holdings power profits.
- Q3 sees 26% BTC yield and $12.9B gain, aiming for $20B by year-end.
- $5.1B raised via stock, boosting liquidity and BTC-backed growth.
- EPS jumps to $8.42 with full-year target of $80 on BTC surge outlook.
- Strategy cements role as Bitcoin Treasury pioneer with bold expansion.
Strategy Inc. (MSTR) stock fell 7.55% to $254.57 at the close on October 30 as the company reported strong third-quarter earnings driven by its growing Bitcoin portfolio.
Strategy Incorporated, MSTR
Despite a decline in share price, the company posted $3.9 billion in operating income and $2.8 billion in net income for Q3 2025. Its diluted earnings per share stood at $8.42, reinforcing its aggressive expansion as the world’s first Bitcoin Treasury Company.
Bitcoin Holdings and Yield Performance
Strategy increased its Bitcoin holdings to 640,808 BTC at a total cost of $47.44 billion, averaging $74,032 per coin. As of October 26, the market value of these holdings reached $70.9 billion, based on a Bitcoin price of approximately $110,600. The company achieved a 26% Bitcoin yield year-to-date, generating a $12.9 billion Bitcoin dollar gain toward its full-year target of $20 billion.
Strategy reaffirmed its 2025 Bitcoin Key Performance Indicators, maintaining targets of 30% BTC yield and $20 billion BTC dollar gain. The firm expects to achieve these through preferred stock offerings and disciplined equity issuance. Its BTC-based growth strategy remains central to its identity as a digital credit and treasury powerhouse.
Financial Results and Guidance
For the third quarter, Strategy posted $3.9 billion in operating income, reversing a $432.6 million operating loss from the prior year. The turnaround primarily resulted from fair value accounting gains on digital assets, which boosted profitability across the board. Net income surged to $2.8 billion, with diluted EPS of $8.42 compared to a prior-year loss per share of $1.72.
The company reaffirmed its full-year 2025 guidance, projecting $34 billion in operating income and $24 billion in net income. It also maintained its diluted EPS forecast of $80, assuming a year-end Bitcoin price of $150,000. The results position Strategy among the most profitable Bitcoin-focused corporations globally, supported by consistent capital inflows and digital asset valuation gains.
Capital Market Activity and Strategic Expansion
Strategy raised $5.1 billion in net proceeds during the third quarter through various stock and preferred offerings. Its at-the-market programs for STRF, STRC, STRK, and STRD series stocks generated significant liquidity, with billions still available for future issuance. The company also completed a $2.5 billion IPO of STRC Stock in July 2025, marking a milestone in its capital diversification strategy.
The company adjusted its STRC dividend rate framework, increasing the rate by 25 basis points to 10.50% for November. This move aligns with its policy to manage dividend rates based on market pricing performance. Strategy continues expanding its global credit securities footprint, leveraging over $71 billion in digital collateral to enhance yield and strengthen balance sheet performance.
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