Strategy posts $19.5 billion Q3 net income on bitcoin gains, names new CFO; shares slip about 3.5% after hours
Strategy (MSTR), the largest corporate bitcoin holder, reported third-quarter operating income of $20.91 billion and net income of $19.53 billion, almost all from bitcoin gains. Software revenue fell 3% to $125.4 million, and CFO Andrew Kang will step down on Nov. 5.
Strategy (MSTR) released its third-quarter results in an SEC filing after the close on Thursday, Oct. 29. Profit hit a record, but nearly all of it came from marking its bitcoin to market, and a CFO change announced the same day weighed on the stock, which fell about 3.5% in after-hours trading, according to The Block.
| Item | Q3 2026 | Q3 2025 |
|---|---|---|
| Operating income | $20.91 billion | $3.89 billion |
| Net income | $19.53 billion | $2.79 billion |
| Diluted EPS | $44.75 | $8.42 |
| Revenue (software) | $125.4 million | $128.7 million |
| Preferred dividends | $419.6 million | $139.9 million |
Why it matters: Strategy held 848,517 bitcoin as of Oct. 25 at an average cost of $75,446 each. The company valued its bitcoin at $68.90 billion as of Oct. 23, using a price of about $81,200, against a total cost of $64.02 billion. Its year-to-date “BTC Yield” is negative 3.7%, meaning each diluted share now represents less bitcoin than at the start of 2026 as preferred issuance has grown. If bitcoin trades back toward the $75,446 average cost, next quarter’s mark-to-market gain would shrink sharply.
Leadership change: CFO Andrew Kang steps down on Nov. 5 and stays on as an adviser through Dec. 31. CEO Phong Le will act as principal financial officer in the interim, and Reza Virasteh becomes CFO on Jan. 1, 2027. Holders of the STRC, STRF, STRK and STRD preferred shares approved moving to daily dividend accrual.
Next: Friday’s regular-session reaction, how far bitcoin trades above the company’s average cost, and any new bitcoin purchase filings after STRC’s daily dividends begin on Nov. 1.
Sources
- Strategy – Third quarter 2026 results (SEC Form 8-K, Exhibit 99.1)
- The Block – Strategy reports $19.5 billion in Q3 net income as preferred shareholders approve daily dividends
- Benzinga – Strategy shares slip after Q3 earnings print, CFO transition
- Bitcoin Treasuries – Strategy reports record $21 billion Q3 operating income as CFO steps down
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