Strategy reported a historic operating income of $20.91 billion for Q3 2026, driven primarily by a paper gain on its Bitcoin holdings.
Net income climbed to $19.53 billion, or $44.75 per diluted share, compared with $2.79 billion a year ago.
Chief Financial Officer Andrew Kang, who also announced his resignation in the release, described the result as “Q3 operating income of $21 billion, the largest in Strategy’s history.”
Strategy marks its Bitcoin holdings to market each quarter, so any price movement directly impacts earnings. During Q3, Bitcoin surged, lifting the firm’s 848,517 BTC to a fair‑value of $68.9 billion on October 23, when the token traded around $81,200. The average acquisition cost of $75,446 per Bitcoin leaves the portfolio profitable on a paper basis.
Mr. Kang highlighted the company’s buying activity as the key driver, noting that “we increased our Bitcoin holdings by 26 % year‑to‑date even amid a challenging market.”
Total revenue declined 3 % year‑over‑year to $125.4 million, missing the consensus estimate of $127.2 million. Gross profit was $89.6 million, reflecting a 71 % margin, up from 70 % a year earlier. As of September, the firm held $2.50 billion in cash and equivalents and $3.40 billion in short‑term investments.
Strategy’s Bitcoin‑per‑Share Metric Slides
The Bitcoin‑per‑share metric, which management cites as its primary gauge, moved inversely this quarter. The BTC yield is –3.7 % for the year, indicating each share now represents a smaller Bitcoin holding than in January. In dollar terms, the Bitcoin position recorded a $2.03 billion paper loss over the period. To finance preferred dividends and share repurchases, Strategy sold roughly $431.8 million of Bitcoin during the year, according to the release.
Strategy raised $21.23 billion of capital in 2026, with $5.41 billion of that coming from its at‑the‑market offering in Q3 alone. A sizable portion of the proceeds was used for its own preferred stock, funding a share repurchase of 20,980,508 STRC shares for $2.04 billion at an average price of $97.39 per share, below the $100 par value.
CEO Phong Le explained that the buyback was intended to strengthen the security: “Strategy demonstrated its commitment to returning STRC to health.” Management indicated it will continue repurchasing while the stock trades below par, with approximately $956.7 million of authorized capital still available.
Strategy’s dollar reserves now total $5.07 billion, comprising a $4.83 billion USD Reserve and $242.4 million in USD Cash. The company estimates this buffer will cover 3.4 years of dividend and interest obligations. The board maintained the STRC dividend rate at 12.00 % to help keep the share price near its $100 par value.
STRC Transitions to Daily Dividend Payments
Shareholders approved a shift to daily dividend payments at the October 28 meeting. STRC will commence daily distributions on November 1, with related instruments STRF, STRK, and STRD following suit on January 1, 2027.
CEO Phong Le described the change as a step toward a fully tokenized, 24/7/365 financial ecosystem: “Daily dividends are a natural step toward that world. Digital Credit is being built for it, and Strategy intends to lead the way.”
Strategy anticipates that its preferred distributions will qualify as a non‑taxable return of capital for at least ten years, given the lack of positive accumulated earnings and profits. Shareholders are advised to consult their tax advisors.
STRC’s share price is approaching its $100 par, having traded at $99.99 earlier today—an level that would unlock additional funding for Bitcoin purchases. As previously noted, the daily dividend approval aims to enhance liquidity and curb price volatility. However, Strategy has not yet confirmed any resumption of STRC share issuance.