Strategy Reports Record $20.91 Billion Q3 Operating Income as Michael Saylor Predicts New Bitcoin Bull Market
Strategy Inc. (NASDAQ: MSTR) reported record operating income of $20.91 billion for the third quarter of 2026, driven by substantial gains in the value of its Bitcoin holdings. The company announced its results on Oct. 29, alongside a bullish outlook from Executive Chairman Michael Saylor, who said he believes a new Bitcoin bull market is beginning.
The Bitcoin treasury and enterprise software company recorded diluted earnings per share of $44.75 and net income of $19.53 billion. Of that amount, $19.12 billion was attributable to common stockholders. Despite the strong earnings figures, quarterly revenue declined 3% year over year to $125.4 million.
Strategy's digital asset gains reached $20.91 billion, compared with $3.89 billion in the same period a year earlier. These valuation gains were included in operating income, which measures earnings after operating expenses but before interest and income taxes.
Michael Saylor Signals Confidence in Bitcoin's Next Bull Market
Saylor expressed confidence in Bitcoin's market outlook, pointing to growing institutional interest and increased acceptance among financial institutions.
“We’re at the beginning of the next bitcoin bull market. Banks are embracing bitcoin, bitcoin’s dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average,” Saylor said.
Chief Financial Officer Andrew Kang also highlighted the scale of the company's quarterly performance and its capital-raising activities. Kang said Strategy had generated approximately $21 billion in operating income, raised $21 billion in equity capital and increased its Bitcoin holdings by 26% year to date despite challenging market conditions.
Strategy's Bitcoin Holdings Reach 848,517 BTC
As of Oct. 25, Strategy held 848,517 Bitcoin acquired at a total cost of $64.02 billion, representing an average purchase price of $75,446 per coin. The company had purchased $14.33 billion worth of Bitcoin during 2026 on a year-to-date basis.
Using Bitcoin's Oct. 23 price of $81,200, the holdings were valued at $68.90 billion. Strategy's treasury represented approximately 4% of Bitcoin's maximum supply of 21 million coins.
Strategy shares gained 76% during the third quarter, outperforming Bitcoin's 43% advance over the same period. However, the company's per-share Bitcoin metrics showed that the expansion of its treasury did not translate into an increase in Bitcoin exposure for each assumed diluted share.
Bitcoin Per-Share Metrics Reflect Dilution
Strategy reported a year-to-date $BTC Yield of negative 3.7%. The metric tracks the percentage change in Bitcoin holdings per assumed diluted share, including potential shares associated with convertible securities and equity awards.
The negative result indicated that the company's share count expanded faster than its Bitcoin holdings over the period. Strategy's $BTC Gain, which expresses the change in Bitcoin units using beginning-of-year holdings, stood at negative 24,947 BTC, also reflecting dilution.
Neither metric measures investment returns. Instead, they are designed to track changes in Bitcoin exposure relative to the company's assumed diluted share count.
Strategy Introduces Daily Preferred Stock Dividend Accruals
Shareholders approved daily preferred stock dividend accruals on Oct. 28. The change will begin with Stretch (STRC), a variable-rate perpetual preferred stock, on Nov. 1. Strife (STRF), Strike (STRK) and Stride (STRD), which are fixed-rate perpetual preferred stocks currently paying quarterly dividends, are scheduled to follow on Jan. 1, 2027.
The preferred shares rank ahead of MSTR common stock for dividend payments but are not backed by collateral in Strategy's Bitcoin holdings. Dividends will accrue on weekends and holidays, while cash payments may be combined and made on business days.
Strategy maintained STRC's annual dividend rate at 12%, with the stated aim of supporting trading near its $100 stated amount. The company reported $5.07 billion in dollar assets, which it estimated would cover preferred dividends and interest obligations for approximately 3.4 years.
Strategy Reports Buybacks and Changes in Finance Leadership
Strategy made no Bitcoin purchases during Oct. 19-25 but repurchased $204.9 million in STRC shares. Year-to-date repurchases totaled $2.04 billion, including unsettled transactions. The company also sold approximately $431.8 million worth of Bitcoin during 2026 to help finance preferred dividends and STRC repurchases.
The company is also preparing for a finance leadership transition. Kang will step down on Nov. 5 and remain an adviser through Dec. 31. President and CEO Phong Le will assume finance oversight during the transition.
Executive Vice President of Operations Reza Virasteh is scheduled to become CFO on Jan. 1, 2027. He will serve as co-principal financial officer alongside Le, who will retain responsibility for financial management of Strategy's Bitcoin strategy.
Strategy's latest results highlight the substantial influence of Bitcoin valuation changes on its reported earnings. While the company continues to expand its digital asset treasury and adjust its
source: news.bitcoin
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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